What is the difference between standing charge and unit rate?
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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.
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Reviewed by Kaiser Khan
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.
Primary source: ofgem.gov.uk/information-consumers/energy-advice-households/energy-price-cap
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