Standing charges are like a daily membership fee for your energy services. Think of it as paying a little bit every day to ensure that gas and electricity can come into your home whenever you need them.
This fee helps pay for the pipes and wires that bring energy to your house and also covers the cost of keeping these services running smoothly.
Here’s a breakdown of what standing charges cover:
- Maintenance: They help maintain the huge network of cables and pipes that deliver energy to all homes.
- Energy Supply: Even when you’re not using energy, your home is always connected to the supply. Standing charges help keep this connection ready and available.
- Meter readings: Not sure much of a cost now with the growing use of smart meters
- Costs of failed suppliers: Costs from these suppliers that went bust are spread among all other existing suppliers
- Government initiatives: Such as the Warm Home discount or environmental initiatives
Whether you use a lot or a little energy, you’ll pay this charge every day. It’s separate from the cost of the actual gas or electricity you use, which will change depending on how much energy you consume.
Which energy suppliers have no standing charge?
Currently, there is only one supplier in the UK (as of August 2024) that offers no standing charge, and this is Utilita.
They offer a variable tariff with zero standing charges for both gas and electricity.
The rates are below for their tariff in the East Midlands (Price per kWh may vary based on your location):
Gas Price per kWh | Gas Standing Charge | Electricity Price per kWh | Electricity Standing Charge |
---|---|---|---|
21.38p | 0p | 51.71p | 0p |
Which energy suppliers have the lowest standing charge?
With Utilita being the only supplier that currently offers no standing charge, we’ve looked at the top suppliers to see who has the cheapest standing charge for both gas and electricity (this is again for the East Midlands).
Variable tariffs
As you can see below, for a gas and electricity variable tariff, Octopus Energy leads the way with the lowest standing charges on both (except for Utilita).
Supplier Name | Tariff Name | Gas Standing Charge | Electricity Standing Charge | Daily Total | Yearly Total |
---|---|---|---|---|---|
Utilita | Smart Energy | 0 | 0 | 0 | £0 |
Octopus Energy | Flexible Octopus | 29.04p | 53.94p | 82.98p | £302.88 |
Co-Operative Energy | Co-op Flexible | 29.04p | 53.94p | 82.98p | £302.88 |
Utility Warehouse | Value | 30.96p | 55.86p | 86.82p | £316.89 |
So Energy | So Flex | 31.1p | 55.99p | 87.09p | £317.88 |
OVO Energy | Simpler Energy | 31.1p | 55.99p | 87.09p | £317.88 |
EDF Energy | Standard Variable | 31.1p | 55.99p | 87.09p | £317.88 |
Scottish Power | Standard | 31.1p | 55.99p | 87.09p | £317.88 |
E. ON Next | Next Flex | 31.1p | 56p | 87.09p | £317.88 |
Good Energy | Good Energy Standard | 31.1p | 55.99p | 87.09p | £317.88 |
Outfox the Market | Fox Standard Dual | 31.1p | 56p | 87.1p | £317.92 |
Sainsbury’s Energy | Standard Variable | 31.11p | 56p | 87.11p | £317.95 |
British Gas | Standard Variable | 31.11p | 56p | 87.11p | £317.95 |
Over the course of a year, you would pay £302.88 in standing charges with Octopus.
Fixed tariffs
When it comes to a dual fuel fixed tariff, Scottish Power offers the cheapest standing charge overall, followed by British Gas and Octopus.
Supplier Name | Tariff Name | Gas Standing Charge | Electricity Standing Charge | Daily Total | Yearly Total |
---|---|---|---|---|---|
Scottish Power | Help Beat Cancer Flexi | 29.6p | 50.68p | 80.28p | £293.02 |
British Gas | Fixed Tariff 12M | 28.37p | 53.26p | 81.63p | £297.95 |
Octopus Energy | Octopus 12M Fixed | 29.04p | 53.94p | 82.98p | £302.88 |
Outfox The Market | Fix’d Dual | 31p | 56p | 87p | £317.55 |
Ovo Energy | 1 Year Fixed | 31.06p | 55.96p | 87.02p | £317.62 |
So Energy | So Orange One Year – Green | 31.1p | 55.99p | 87.09p | £317.88 |
EDF Energy | EDF Essentials | 31.1p | 56p | 87.1p | £317.92 |
E. ON Next | Next Fixed 12M | 31.11p | 56p | 87.11p | £317.95 |
Sainsbury’s Energy | Fix and Reward Fixed 12m | 31.11p | 56p | 87.11p | £317.95 |
Try our Standing Charge cost calculator
We have created a quick calculator below where you can experiment with different standing charges to see how much they add up over the course of a day, month, week and year. You should be able to find your standing charges on your latest energy bill.
Should I choose a supplier with the lowest standing charge?
Choosing an energy supplier with the lowest standing charge might seem like a smart way to save money, but it’s not always straightforward.
The total bill is what really affects your wallet, combining the standing charge and the price you pay for each unit of energy (called the unit rate). Sometimes, a lower standing charge comes with a higher unit rate, and if you use a lot of energy, this could end up costing more.
- Low Usage: If you don’t use much energy, maybe because you’re often out or your home is very energy-efficient, a low standing charge could save you money.
- High Usage: For homes using lots of energy, maybe with larger families or less efficient appliances, finding a balance between a reasonable standing charge and a lower unit rate might be better.
With Utilita, for example, despite having no standing charge on their variable tariff, their unit rate for electricity is more than double that of Octopus and more than three times higher when it comes to gas.
The average three-bedroom home would have a lower bill with Octopus. A very low-energy user in a smaller home, however, would likely have a cheaper bill with Utilita.
hi
I am one person
I currently pay more on standing charges than what I use.
As the UK GOV sold UK’s re-new power output for 2026 to the open market at below 3p per Kw hour. Do you think the new Keir Starmer plan :- Labour will set up Great British Energy, a publicly-owned clean power company, to cut bills for good and boost energy security help? If he buy’s the 2027’s re-new output. And cuts the Gas to Electric price connation. What sort of saving could we be look at? 50% cheaper 65% cheaper with also looking at the Standing Charge cost being justified. Like bank charges in the past?