Energy Standing Charge Explained: What It Is and Why You Pay It

Your gas and electricity bills have two parts: a price for each unit of energy you use, and a standing charge. The standing charge is a fixed amount for every day you are supplied, and Ofgem describes it as the charge you pay every day even if you do not use any energy on that day.

This guide explains what the standing charge is, what it costs under the current price cap, and how to see your own.

What the standing charge is

An energy bill is worked out from two numbers:

1. The unit rate: the price for each kilowatt hour (kWh) of gas or electricity you use.
2. The standing charge: a fixed amount per day, for each fuel, whether you use a little energy or none at all.

So a month with the heating off still has a standing charge for every day of that month. If you have both gas and electricity, you pay two standing charges.

What the standing charge pays for

The energy price cap sets the most a supplier can charge for the unit rate and the standing charge on a default tariff. Ofgem lists what the cap as a whole is built from: wholesale energy costs, network costs, policy costs, operating costs, supplier earnings, an allowance for uncertainty and VAT. The standing charge carries part of these fixed costs of keeping a home supplied.

The standing charge from 1 October to 31 December 2026

Ofgem’s averages for a default (standard variable) tariff paid by Direct Debit, across England, Scotland and Wales:

Fuel	Unit rate	Standing charge
Electricity	26.32p per kWh	54.83p per day
Gas	7.97p per kWh	29.68p per day

Ofgem notes that there is no VAT on electricity from 1 October 2026 to 31 March 2027, and that its gas figures include 5% VAT.

What that adds up to

A worked example using those averages:

• Electricity standing charge: 54.83p × 365 days ≈ £200 a year
• Gas standing charge: 29.68p × 365 days ≈ £108 a year

That is about £308 a year in standing charges alone for a home with both fuels, before any energy is used. Ofgem sets the cap every three months, so this is a snapshot of one quarter’s rates.

Why it matters more if you use little energy

The standing charge is the same whether you use a lot of energy or very little, so it makes up a bigger share of a small bill. Two worked examples with made-up electricity use, at Ofgem’s October to December 2026 averages:

Yearly electricity use	Usage cost	Standing charge	Standing charge share
1,000 kWh	£263.20	£200.13	about 43%
4,000 kWh	£1,052.80	£200.13	about 16%

If you live alone or are often away, the standing charge can be a large share of your electricity bill, as the first example shows, which is worth knowing when you compare tariffs.

Why your standing charge may be different

Ofgem says your unit rate and daily standing charge depend on where you live and how you pay: by Direct Debit, standard credit (paying on receipt of a bill) or a prepayment meter. The figures above are national averages for Direct Debit. Your bill and your supplier’s app show your own rates.

The cap also covers default tariffs only. If you are on a fixed tariff, your unit rate and standing charge are the ones in your contract.

How to check your standing charge

1. Open your latest energy bill or your supplier’s app.
2. Look for the standing charge for each fuel, shown in pence per day.
3. Compare it with Ofgem’s regional table for your area and payment method.
4. Note it down with your other bills, because it is a cost you pay every month whatever you use.

When you budget for energy, add the standing charges first, then your expected usage. Our guide to the energy price cap explains why bills can rise even under the cap, and our annual bill review shows how to check you are not overpaying.

Keeping energy in your bill list

Energy is usually paid by monthly Direct Debit, but the amount can change when the cap changes each quarter. Keep the amount and collection date in your bill list and update it when your supplier writes to you. A bill tracker like Billo shows every due date in one place, so a change in your energy payment does not catch you out.