What Are Standing Charges for Gas and Electricity?

What is a standing charge?  

A standing charge is a fixed daily cost added to your gas or electricity bill by your provider to keep you connected to an energy supply and your gas or electricity flowing. It’s separate from the cost of the energy you use, so whether you use a little or a lot of power, the daily standing charge will stay the same.

Think of it as paying to be able to use the services that provide our homes with gas and electricity.

Standing charges are used to cover the cost of things like:

• Keeping your home connected to the energy network 

• Using the energy network

• Network maintenance

• Meter reading visits

• Supporting government schemes like the Warm Home Discount

How do standing charges work?

When you receive your energy bill, you’ll notice two main charges: 

• The unit rate – The unit rate is the amount you pay per kilowatt-hour (kWh) of gas or electricity that you use. Your energy provider agrees to this when you first take out your tariff. 

• The standing charge – This is a daily fixed charge that you have to pay regardless of your energy consumption.

You’ll notice that the standing charge is listed separately from the unit rate because it’s a flat fee that doesn’t depend on how much electricity or gas you’ve used.

Ofgem has explained that keeping the standing charge separate from the unit fee helps ensure that the charge is evenly applied to energy users across the country. Otherwise, households with high usage could end up paying a significant amount more, which may affect vulnerable customers.

How much are standing charges for gas and electricity?

Standing charges for gas and electricity are set by your energy supplier, and the exact amount you pay will vary from provider to provider and from region to region. There are a few other factors that come into play which can impact the cost, including:

• Your location 

• The meter you have  

• The kind of tariff you’re on

• How you pay your bill

Homes in rural or remote areas may have a higher standing charge because energy has to travel further from where it’s generated to reach them.

It might not seem like much on its own, but those daily charges do add up over time. Even if you’re trying to save energy and aren’t using much, you’re still paying to stay connected to the grid. That’s why it’s worth checking your energy deal to see exactly what you’re being charged — it’s all there in your tariff details, which you can find in your monthly bill or annual statement if you’re a prepayment customer.

Keep in mind that some tariffs with lower standing charges might bump up your unit rate, so it’s all about balancing what works best for your household.

Do I have to pay standing charges?

In most cases, yes, you’ll have to pay standing charges because they’re a legal requirement. Whether you’re using a little or a lot of energy, that daily fee is there to keep everything running as it should, from maintaining the network to supporting things like meter readings.

However, there are a few exceptions:

• If you have an empty property – Paying to be able to use electricity or gas in an unoccupied property can be a drain on your wallet, but it could be possible to remove or suspend the standing charge temporarily. However, this will have to be negotiated with your supplier and is at their discretion.

• Disconnecting your property from the grid – A drastic and longer-term option if you have an unoccupied property is to remove your energy meter and, therefore, your supply to electricity or gas. There will likely be a charge for this, though.

So, while there may be some exceptions, most of us will be legally required to pay standing charges to keep the lights on at home.

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