Written by David Walter, Chief Commercial Officer
10 Dec 2024 - Have you ever looked at your energy bill and wondered what all of your fees actually mean? One that might seem a bit confusing is the standing charge.
In this article, we’ll break down what standing charges are, how they work, and how they fit into your bill — so you can take control of your energy costs with confidence.
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
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.
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.
When you switch your energy, broadband, and mobile with UW, you don't just get £100 off your bill - you also unlock:
One simple bill (because life’s complicated enough)
Award-winning UK customer service
More savings every month
Your local UW Partner will sort it all for you. No stress, just savings and more savings.
The legal bit
£100 bill credit: Must be a new homeowner customer who signs up via a UW Partner on or after 04/02/25 taking at least three eligible services. See full terms and conditions here.
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.
Your standing charge is something you’ll pay every single day, whether you’re using energy or not. So if you’re away on holiday or cutting down your energy usage, you’ll still need to pay it to keep you connected to the gas and electricity network and ensure that everything keeps running smoothly behind the scenes. It’s worth noting that this also applies to prepayment meters, too.
If you’ve got a credit meter, you’ll see the standing charge added to your bill, either monthly or quarterly, depending on how you pay.
And if you have a prepayment meter, you’ll be able to see the standing charge by checking your meter or your annual statement.
It’s a bit like paying rent for your energy connection — it’s there, keeping things ticking over, no matter how much energy you’re actually using.
The energy price cap isn’t just about the rate you pay for gas and electricity — it also sets a maximum limit for your standing charge, ensuring you’re not paying over the odds to stay connected to the energy grid.
But, while the energy price cap helps keep things in check, it doesn’t mean standing charges are immune to price hikes — they can still go up as suppliers cover their operational costs and keep the network running smoothly.
Yep, if you’ve got a prepayment meter, you’ll still have to pay a standing charge. The standing charge is taken from your balance every day, even if you haven’t used any gas or electricity.
So, if your meter runs out of credit, that standing charge will keep building up. When you top up, a chunk of that money will go towards covering what’s built up. It’s worth remembering, especially if you’re away or not using much energy.
Just like with prepayment meters, you’ll have to pay a standing charge if you have a smart meter. Your standing charge is usually included as part of your overall usage cost on your smart home display device.
The good news? Smart meters won’t change how your standing charge works — it’s all handled automatically, so you don’t need to do a thing. You’ll see the standing charge itemised on your bill, just like with traditional meters. Even if you’re using very little energy, the standing charge will still be there.
Learn more about how smart meters work here.
When you bundle with UW, we’ll combine your services into one single, great-value bill so you don’t have to worry about multiple payments.
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When you switch your energy, broadband, and mobile with UW, you don't just get £100 off your bill - you also unlock:
One simple bill (because life’s complicated enough)
Award-winning UK customer service
More savings every month
Your local UW Partner will sort it all for you. No stress, just savings and more savings.
The legal bit
£100 bill credit: Must be a new homeowner customer who signs up via a UW Partner on or after 04/02/25 taking at least three eligible services. See full terms and conditions here.
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Nobody likes having high energy bills – we can all agree on that. Which is why knowing how to be more efficient and reduce your usage is super important.
23 July 2024 - Whether you want to reduce your utility bills or contribute to a greener planet, adopting energy-efficient habits can make a significant difference. At UW, we're committed to helping you achieve these goals.
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