What is a standing charge?

A standing charge is a fixed daily amount added to your overall energy costs, regardless of how much energy you use. Even if your home is empty, or if you’re a Pay As You Go customer who doesn’t use gas over the summer, you’ll still need to pay this charge*. For low energy users, this fixed charge can make up a significant portion of the bill. It also helps you budget your energy costs more predictably across the year.

Your standing charge is like a subscription fee for your energy supply that ensures essential services are maintained. It helps cover a number of costs such as the costs of maintaining the energy network, ensuring electricity and gas can reach your home and meter safety checks.

Ofgem requires all tariffs with standing charges to display the price of gas and or electricity (unit rate) and standing charge separately. This makes it easier to compare different tariffs across the energy market.

The energy price cap is set by Ofgem and updated every three months. It is intended to help keep typical energy costs fair for households. It doesn’t set a limit on the unit rate or fixed daily charge a supplier can charge you, but it does set a limit on the overall amount you will pay. For example, you could be on a tariff that has a higher unit rate but a lower daily charge.

Your unit rate and daily charge will vary based on a number of factors, including your payment method, meter type and where you live.

Yes, unless you have a tariff without standing charges, all customers pay a fixed daily charge. This charge is usually included in the total displayed on your smart meter’s In-Home Display, which is why you might see a small amount even when you’ve been out all day or just returned from a holiday.