Last updated: January 2026 Reviewed by: UK Energy Market Analyst Regulator: Ofgem

Cheapest Energy Standing Charges Explained (UK 2026)

An energy standing charge is the fixed daily amount you pay for gas and electricity regardless of usage. In 2026, standing charges are one of the biggest drivers of high energy bills.

45-65p
Electricity Daily
30-45p
Gas Daily
£275-£405
Annual Cost

What Standing Charges Pay For:

  • Maintaining gas and electricity networks
  • Meter reading and administration
  • Customer service and billing systems
  • Government energy schemes and levies

You pay standing charges even if you're away, use zero energy, or your property is empty.

What Is Considered a "Cheap" Standing Charge?

Price Guidelines (2026)

A cheap standing charge is relative to your region and usage level. As a rough guide:

Electricity below: 45p/day
Gas below: 30p/day

However, cheap standing charges often come with higher unit rates, so total cost always matters more.

Why They Vary by Postcode

Standing charges are regionally priced because of:

  • Local grid maintenance costs
  • Distribution network differences
  • Historical pricing zones

Important:

Two identical homes can pay different standing charges. National "cheapest" lists are misleading.

Annual Cost Impact

Before you use any energy, you could be paying:

For electricity (45-65p daily): £165–£240 per year
For gas (30-45p daily): £110–£165 per year

That's £275-£405 per year before any energy consumption.

Cheapest Standing Charges: Fixed vs Variable Tariffs

Variable Tariffs

  • Standing charges capped by Ofgem
  • Rarely the cheapest overall
  • Prices can rise with the cap
  • No exit fees usually
  • Flexibility to switch anytime

Fixed Tariffs

  • Standing charges may be lower or higher than the cap
  • Some lower standing charges but raise unit rates
  • Price protection for contract duration
  • Often include exit fees
  • Contract length typically 12-24 months

Note: Some fixed tariffs deliberately lower standing charges but raise unit rates — or vice versa. Always compare total annual cost.

Cheapest Standing Charges for Different Households

Low-Usage Homes & Flats

  • Standing charges matter more than unit rates
  • Low standing charge tariffs can save £100+ per year
  • Focus on minimizing daily fixed costs
  • Specialist tariffs may be available

High-Usage Homes

  • Unit rates matter more than standing charges
  • Slightly higher standing charges can be acceptable
  • Focus on lowest overall annual cost
  • Balance between standing charges and unit rates

Second Homes & Vacant Properties

  • Standing charges dominate total cost
  • Specialist low-standing-charge tariffs may help
  • Consider very low usage tariffs
  • May accept higher unit rates for lower standing charges

Special Meter Considerations

Prepayment Meters

  • Often face higher standing charges
  • Fewer low-cost options available
  • In some regions, prepayment electricity standing charges are among the highest
  • Comparing is especially important for prepay users

Economy 7 Meters

  • Usually have a single standing charge
  • Often higher than standard electricity standing charges
  • Savings depend entirely on overnight electricity usage
  • If most usage is daytime, Economy 7 can cost more

Zero Standing Charge Energy?

Almost never available. So-called zero standing charge tariffs:

  • Are extremely rare
  • Come with very high unit rates
  • Usually cost more overall

For most households, minimizing standing charges, not eliminating them, is the realistic goal.

Standing Charges vs Unit Rates: Which Is More Important?

Low Usage Households

  • Standing charges have the biggest impact
  • Can be 30-50% of total bill
  • Focus on lowest standing charges
  • Accept slightly higher unit rates if needed
  • Annual savings: £100+ possible

High Usage Households

  • Unit rates matter more than standing charges
  • Standing charges are smaller percentage of bill
  • Focus on lowest unit rates
  • Can accept higher standing charges
  • Balance is key for optimal savings

Key Takeaway: This is why comparing total annual cost is essential. Never look at standing charges or unit rates in isolation.

Common Myths About Cheap Standing Charges

"The lowest standing charge is always the cheapest tariff"

False. Suppliers may offset lower standing charges with much higher unit rates. Always compare total annual cost.

"Standing charges are the same everywhere"

False. Regional pricing varies significantly due to local network costs, infrastructure, and historical pricing zones.

"The price cap keeps standing charges low"

False. The Ofgem price cap limits standing charges but does not make them cheap. Standing charges under the cap can still be high.

How to Find the Cheapest Standing Charges

Step 1: Enter Your Postcode

The cheapest standing charges can only be identified using postcode comparison. National averages are misleading.

  • Standing charges vary by region
  • Local network costs differ
  • Distribution infrastructure varies

Step 2: Enter Realistic Annual Usage

Accurate usage figures ensure proper comparison between standing charges and unit rates.

  • Use actual kWh figures if available
  • Estimate based on household size
  • Consider seasonal variations

Step 3: Compare Total Annual Cost

Compare standing charges, unit rates, and total yearly cost together.

  • Don't look at standing charges alone
  • Check exit fees and contract length
  • Consider tariff type (fixed/variable)

Find Your Cheapest Standing Charges Today

In 2026, standing charges can make up nearly half of an energy bill for low-usage households. Choosing the cheapest standing charge tariff — without overpaying on unit rates — is one of the smartest ways to cut costs.

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