How to decide if a zero standing charge tariff is right for you
A lower standing charge only saves money when a tariff-specific calculation using your own annual consumption shows a lower total.
Contents
Introduction
A zero-standing-charge tariff removes the daily standing-charge element, so more of the bill depends on the energy you use. The tariff may still have other terms or charges, so a period with no consumption is not automatically evidence that the whole bill will be zero.
Suppliers still need to recover network, account and policy costs. A tariff with no or a lower standing charge may therefore use a higher unit rate, which changes the point at which it becomes cheaper or more expensive than a conventional tariff.
These tariffs are not a guaranteed saving. Compare both tariffs using your own annual consumption: low use may favour the lower standing charge, while higher use gives the unit-rate difference more weight.
Availability is limited. Ofgem is running a one-year lower-standing-charge pilot from June 2026 with participating suppliers and supplier-specific eligibility; it did not require every supplier to offer a zero-standing-charge default tariff.
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Frequently asked questions
What is a standing charge?
A standing charge is a daily amount included in many energy tariffs, separate from the unit rate. It contributes to costs such as operating the network and metering, but the exact amount varies by tariff, region, fuel and payment method.
Do I still pay a standing charge if I use no energy?
A conventional tariff normally charges its daily standing charge even when consumption is zero. A tariff advertised with no standing charge removes that element, but check whether any other charges or conditions still apply.
Are zero standing charge tariffs cheaper?
Not necessarily. A lower standing charge is usually paired with a different unit rate. There is no universal 2,200 kWh threshold; calculate the break-even point from the exact two tariffs and your expected annual use.
Can I get a zero standing charge tariff for gas?
Availability for gas and electricity varies. If a gas option is offered, compare its actual standing charge and unit rate with your current tariff using your expected annual gas consumption.
Do all suppliers offer zero standing charge tariffs?
No. Ofgem began a limited one-year lower-standing-charge pilot in June 2026, initially involving EDF, E.ON, Octopus and British Gas. Eligibility and places are supplier-specific, and the pilot is not a rule requiring every supplier to offer every customer a zero-standing-charge default tariff.
Why will the average electricity standing charge change in October 2026?
For Great Britain Direct Debit customers, Ofgem's average electricity standing charge will fall from 57.19p/day in July–September to 54.83p/day from 1 October 2026. The October cap reflects several cost components, including the temporary removal of VAT from domestic electricity; do not attribute the full standing-charge change to VAT alone.
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Written by
Rob Gibbs
Hi, I'm Rob, and I run Energy-Review.co.uk. I initially started this project in 2018 when I was looking to switch energy suppliers and found there wasn't a website that provided simple, data-backed reviews on all the suppliers available. Since then, I have spent a lot of time (too much, some may say!) looking at all publicly available data about each supplier and writing reviews using this information. These reviews are updated as regularly as possible, and any data is backed up by a source where necessary. I have also started writing guides on various energy-related topics, which hopefully you will find useful. If you find any issues, please use our contact form to let us know.