Energy standing charges: what you pay even at zero usage

A British energy bill has two parts. The first is the standing charge: a fixed daily amount for being connected to the network, charged no matter how much you use. The second is the unit rate — what you pay for the energy you actually consume. Here are the latest figures from the regulator.

How big is the standing charge now?

Ofgem, the regulator that sets the price cap for household tariffs, gives these averages across England, Scotland and Wales for 1 October to 31 December 2026 on direct debit: the electricity standing charge is 54.83 pence a day and the gas standing charge is 29.68 pence a day. Together that is 84.51 pence a day — about £308 a year even if you use not a single kilowatt-hour.

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What does usage itself cost?

The unit rates for the same period are 26.32 pence per kWh for electricity and 7.97 pence per kWh for gas. These are added to the standing charge and depend on how much you actually use.

What is the lower standing charge tariff?

From early 2026 Ofgem required all major suppliers to offer at least one tariff with a lower standing charge. The catch: such a tariff has a higher unit rate, so it does not always cut the bill on its own. As the regulator puts it, the costs covered by the standing charge ultimately must be paid. The tariff mainly suits those who use little energy — empty properties, second homes, frugal single occupiers.

A worked example

Take a flat that uses 2,000 kilowatt-hours of electricity and 8,000 of gas a year. The standing charge for the year is 54.83 pence × 365 plus 29.68 pence × 365 — about £308. On top of that the usage: 2,000 × 26.32 pence is roughly £526 for electricity, and 8,000 × 7.97 pence about £638 for gas. The standing charge is a noticeable but not the largest part of the bill. Yet the less you use, the bigger its share becomes: for an empty property or a frugal single occupier, the standing charge can end up larger than the usage charge itself.

What to do about it

Work out your annual usage in kilowatt-hours from past bills. If your usage is low, a lower standing charge tariff may work out cheaper — ask your supplier about it. If your usage is high, a standard tariff with a low unit rate is usually better. You cannot remove the standing charge entirely, but you can compare it between tariffs. Current cap figures are published by Ofgem on its website.