What is the energy standing charge?
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In short: A fixed daily fee on gas and electricity bills that covers network costs, metering and supplier overheads — you pay it regardless of how much energy you use. Ofgem caps standing charges as part of the energy price cap alongside unit rates.
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Reviewed by Kaiser Khan
Your energy bill has two parts: the unit rate (pence per kWh of gas or electricity used) and the standing charge (pence per day). The standing charge pays for being connected to the grid, maintaining pipes and wires, metering, and some policy costs. You pay it even if you use almost no energy that day.
Ofgem's price cap sets maximum standing charges and unit rates for default tariffs each quarter. From July 2026, typical standing charges are roughly 60p a day for electricity and 30p for gas, though exact figures vary by region and payment method — direct debit is usually cheapest.
Low users — a second home, a single-person flat — can find standing charges make up a large share of the bill. Few tariffs offer zero standing charges, and those that do often charge higher unit rates. When comparing fixes, multiply standing charge by 365 and add estimated usage at the unit rate to get a true annual cost.
Primary source: ofgem.gov.uk/information-consumers/energy-advice-households/energy-price-cap
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