# What is the difference between standing charge and unit rate?

> Quick answer · Last updated 4 July 2026

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## In short

The standing charge is a fixed daily fee for being connected to gas or electricity; the unit rate is what you pay per kWh used. Ofgem caps both under the energy price cap — low users pay a higher share as standing charges.

Multiply standing charge by 365 and add (unit rate × annual kWh) for total bill. A high standing charge hurts second homes and low users.

Few tariffs eliminate standing charges; those that do often charge higher unit rates. Compare full annual cost, not just unit rate headlines.

See our standing charge guide and energy price cap answer.

## Related

- [Standing charge explained](https://moneyguide.org.uk/bills-utilities/standing-charge-explained/)
- [What is the energy price cap?](https://moneyguide.org.uk/answers/what-is-the-energy-price-cap/)
- [Energy tariff comparator](https://moneyguide.org.uk/tools/energy-tariff-comparator/)

## Primary source

ofgem.gov.uk/information-consumers/energy-advice-households/energy-price-cap

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.