GuideHQ

What is a standing charge and can I avoid it?

The daily fee you pay before using any energy, why it exists, and the trade-off in tariffs that reduce it.

Difficulty
beginner
Time
15 min
Read
2 min
Safety
caution

Short answer

It is a fixed daily amount charged whether or not you use any energy, covering network costs and metering. You generally cannot avoid it while connected — tariffs with a lower standing charge usually carry a higher unit rate instead.

The standing charge surprises people who use very little energy, because a nearly-empty house still generates a bill. Understanding what it pays for explains why it exists and why removing it simply moves the cost.

Safety

This explains how energy charging generally works. Tariffs and rules change, so check current terms with your supplier or the regulator rather than relying on any general guide for a decision.

Step by step

  1. Find it on your bill.Listed separately from the unit rate, usually as pence per day for gas and electricity separately. Multiply by the days in the period to see what it contributes.
  2. Understand what it covers.Maintaining the pipes and wires, meter provision and reading, and some industry costs including the safety net when a supplier fails. It is a cost of being connected, not of using anything.
  3. Note that it applies whether or not you use energy.An empty property still accrues it. This is what catches out second homes, properties between tenancies, and people away for months.
  4. Compare tariffs on total annual cost, not one number.A low standing charge with a high unit rate suits low users; the reverse suits high users. Comparing either number alone is misleading — compare the estimated annual cost at your actual usage.
  5. Work out your own break-even if you are choosing.Take your annual usage in kilowatt hours from a previous bill, and calculate the total under each tariff. It is arithmetic, and it is the only honest comparison.
  6. Check whether low-standing-charge tariffs exist for you.They come and go, and are usually only worth it for genuinely low usage. Read the unit rate carefully before switching.
  7. Consider disconnection only in specific circumstances.Permanently removing a gas supply stops the gas standing charge, but reconnection is expensive and it affects the property. Only relevant if you have genuinely no gas appliances.
  8. Ask about support if the bill is unaffordable.Suppliers have obligations to customers in difficulty, and there are schemes for certain circumstances. Contacting them early is always better than not paying.

Tips

  • Standing charges vary by region because network costs differ. It is not something your supplier sets freely.
  • If you are a very low user, the standing charge can be most of your bill. That is worth understanding rather than assuming you are being overcharged.
  • Prepayment meters have standing charges too — they accumulate as debt on the meter when it is not topped up.

Questions people ask

Can I avoid the standing charge?

Generally not while connected. Some tariffs reduce it, but they typically raise the unit rate instead — compare total annual cost at your own usage.

Why do I have a bill when I used no energy?

The standing charge accrues daily regardless of usage, because it covers the cost of being connected rather than of consuming anything.

Related guides