1. Home
  2. Energy deals
  3. Guides
  4. Gas and electricity standing charges

Gas and electricity standing charges

Discover what standing charges are, and why they’re added to your energy bills. Find out if it’s possible to avoid standing charges for electricity and gas by switching to a different tariff.

Energy bill with pencil and calculator

A standing charge is a fixed-rate cost that is added to your energy bill every single day, even if you don’t use any energy. There are separate standing charges for gas and electricity.

The charge is designed to cover the costs of supplying your home with gas and electricity. This includes transport costs and administration charges. The gas and electric standing charges also help pay for government environmental and social schemes.

Check your latest energy bill to see how much your gas and electricity standing charges are. Read our guide to reading your energy bill if you can’t find it.

Standing charges vary depending on your supplier, your tariff and where you live. This is because it costs more to transport energy to certain parts of the UK. Standing charges are also applied separately to your gas and electric bills.

Ofgem puts a limit on how much each supplier can set its daily standing charges via the energy price cap. The following figures show the electric and gas standing charges for the next few months: 

Region Electric standing charge 1 Jan - 31 Mar 2024 Electric standing charge 1 Apr - 30 Jun 2024  Gas standing charge 1 Jan - 31 Mar 2024  Gas standing charge 1 Apr - 30 Jun 2024 
UK average
53.35p per day
60.10p per day
29.60p per day
31.43p per day
London
38.50p
40.79p
29.60p
32.04p
South East
47.56p
56.90p
29.60p
30.94p
Southern
49.97p
63.33p
29.59p
30.78p
South Western
58.68p
67.19p
29.59p
30.97p
South Wales
54.21p
63.26p
29.59p
31.75p
Midlands
54.36p
62.73p
29.60p
31.45p
North Wales and Mersey
62.21p
67.04p
29.60p
31.89p
North West
51.79p
51.19p
29.60p
31.62p
Southern Scotland
62.08p
63.31p
29.60p
31.67p
Northern Scotland
59.38p
61.10p
29.60p
31.58p
Northern
57.44p
71.20p
29.60p
31.56p
Yorkshire
56.00p
67.44p
29.60p
31.56p
East Midlands
50.69p
56.00p
29.60p
31.11p
Eastern
44.00p
49.92p
29.60p
31.01p

Figures based on customers on a standard variable tariff with single-rate electric meter, paying by Direct Debit. Ofgem publishes rates for other customer types, including those who pay on receipt of their bills, or through a prepayment meter.

Standing charges have been steadily increasing over the past few years. This is because in the past, the per unit (kWh) cost [link] of your energy was enough to cover the supplier costs.

Now, however, they’re transferring more of those costs to the fixed daily standing charges. This penalises households who use less gas and electricity, and has led Ofgem to launch a review into standing charges.

Yes. They’re included as part of prepayment energy tariffs. This means that even if you have no credit on your meter, your supplier still charges you daily. When you next top up, your credit should cover any standing charges you owe. The remaining balance covers the cost of the energy you use.

The good news is that prepayment standing charges are falling in line with standard credit meters. From 1 April 2024, the average prepayment standing charge will be 60.10p per kWh for electricity, and 23.72p per kWh for gas.

Pay particular attention to your gas meter – even when the central heating is switched off, you’re liable for the daily charge. This can quickly add up – the gas daily standing charge costs around £7.12 a month, for example.

Yes, but they’re few and far between. These types of tariffs may have no standing charge or simply charge £0.00 for them. Note that tariffs with zero standing charges usually charge a higher cost per kWh for each unit of energy you use.

This depends on your energy usage and personal circumstances. In most cases, tariffs with no standing charges are best suited for households that use little gas or electricity. They're also good for properties that are left empty for long periods, such as holiday homes.

However, if your home uses an average or large amount of electricity, zero-charge tariffs are unlikely to save you money.

Whether you avoid standing charges or not, you may still be able to switch to a better deal. Our energy comparison tool can compare a wide range of deals to help potentially save you money on your gas and electricity bills.

 

Share this article