Standing charges explained: why do you pay them even if you use no energy?

A standing charge is a fixed daily fee for being connected to the gas and electricity networks. You pay it every day, even if you use nothing. Under the price cap from 1 October 2026 it averages 54.83p a day for electricity and 29.68p for gas, about £308 a year together.

Those figures are Ofgem's averages for England, Scotland and Wales on Direct Debit, as of 9 October 2026. Your own standing charge depends on where you live, your meter and your tariff.

What is a standing charge, exactly?

Every tariff has two prices. The unit rate is what you pay per kWh you use. The standing charge is what you pay per day, whatever you use.

Ofgem describes it as the charge "you pay every day even if you do not use any energy on that day". If you have both gas and electricity, you pay two standing charges: one for each fuel.

The price cap limits the unit rate and the standing charge on standard variable tariffs. It doesn't cap your total bill. The more you use, the more you pay.

What does the standing charge pay for?

It mostly covers costs that don't change with how much you use. Ofgem lists them as:

• the fixed costs of the wires and cables that bring energy to your home
• the cost of some government policies (historically including the Warm Home Discount)
• energy suppliers' customer service and running costs

Ofgem's view is blunt: "We cannot remove these charges, we can only move costs around." If less is collected through the standing charge, more has to be collected through unit rates.

That has already happened once this year. From April 2026, Ofgem moved Warm Home Discount costs out of standing charges and into unit rates. The government also ended or moved two environmental and social schemes onto general taxation, which Ofgem said would save customers an average of £150. Over the same period, network costs rose by £66 a year under the new network price controls (RIIO-3).

How much are standing charges now?

These are the price cap averages for Direct Debit customers:

From 1 October 2026 the electricity figure has no VAT on it, because household electricity is zero-rated until 31 March 2027. The gas figure includes 5% VAT. So the drop in electricity is down to the VAT change: without VAT, the July figure would have been about 54.47p, slightly lower than now. Our guide to no VAT on electricity explains it.

Over a full year at October 2026 rates, that's:

• electricity: 54.83p × 365 = about £200
• gas: 29.68p × 365 = about £108
• both fuels: about £308 before you use a single kWh

The next cap, for 1 January to 31 March 2027, is due to be announced on 25 November 2026.

Why is my standing charge different from these figures?

The average hides real differences. Ofgem says your standing charge can vary by:

• where you live: each region has its own capped standing charge
• how you pay: Direct Debit, standard credit (paying on receipt of a bill) or prepayment
• your fuel and meter: gas or electricity, single-rate or multi-rate (such as Economy 7)

Prepayment customers now pay the same standing charge as Direct Debit customers. Ofgem made that change through a "levelisation" adjustment in the cap.

To see your region's figure, check Ofgem's regional unit rates and standing charges table, or look at your latest bill. It shows the standing charge in pence per day.

Can you get a tariff with a lower standing charge?

Sometimes, but it usually means a higher unit rate.

Ofgem consulted in 2025 on making every large supplier offer a lower standing charge tariff. It didn't go ahead with that rule. Instead it launched a one-year pilot from June 2026. The first suppliers in it are EDF, E.ON, Octopus and British Gas, and Ofgem has asked others to join.

What Ofgem says about the pilot tariffs:

• Dual-fuel customers could pay about £150 a year less in standing charges than under the price cap. Single-fuel customers may see less.
• Suppliers are expected to set higher unit rates on these tariffs.
• "The pilot tariffs may not mean that the energy bills of those who take part will be cheaper."
• Places are limited, and each supplier sets its own eligibility and terms.

Some suppliers also offer low or no standing charge tariffs outside the pilot.

Who actually saves on a low standing charge tariff?

It depends on how much you use. A lower standing charge saves you a fixed amount. A higher unit rate costs you more for every kWh. The break-even point is where the two match.

Here's an illustration with made-up numbers, not a real tariff. Say a tariff cuts your electricity standing charge by 30p a day and adds 3p to each kWh:

• standing charge saving: 30p × 365 = £109.50 a year
• break-even use: £109.50 ÷ 3p = 3,650 kWh a year

If you use less than 3,650 kWh of electricity a year, you'd save. If you use more, you'd pay more. Run the same sum with the real numbers from any tariff you're offered.

Low users tend to gain most. That can include people who live alone, are away a lot, or have a second home. High users, such as homes with electric heating or medical equipment, can lose out. Some charities raised exactly that concern in Ofgem's consultation.

Your annual kWh is on your bill or in your online account. Our estimator can also give you a rough figure.

Can you avoid the standing charge altogether?

Not on a normal tariff. You pay it for every day you have a supply, even an empty home. A few points are worth knowing:

• If you're on a cap-level tariff, you can't negotiate the standing charge down. You can only change tariff.
• If a fixed deal has a higher standing charge but a lower unit rate, it can still be cheaper overall. Compare the yearly total, not one number. Our guide to fixed or variable tariffs walks through it.
• If you have a gas supply but use no gas, you still pay the gas standing charge for every day the supply is on your account.

This is general information, not legal or financial advice.

What to do next

• Find the standing charge on your latest bill, in pence per day, for each fuel.
• Multiply it by 365 to see what it costs you a year.
• Check your yearly kWh on your bill or online account.
• If you're offered a low standing charge tariff, work out the break-even use with its real rates.
• Compare total yearly cost, not just the standing charge, before you switch. Use our estimator for a rough guide.
• See the latest cap figures on our price cap page, and watch for the January 2027 cap on 25 November 2026.