Standing Charges Explained
Standing charges are a fixed daily fee you pay your energy supplier — even if you use zero kWh. They cover the cost of keeping your home connected to the gas and electricity networks.
Combined gas + electricity standing charges typically add £300–£340 to your annual bill before you've used a single unit.
What standing charges cover
- Maintaining gas and electricity networks.
- Meter reading and metering infrastructure.
- Government policy costs (renewables, social schemes).
- Costs of failed-supplier rescue schemes (SOLR).
How to reduce their impact
- Look for tariffs with low standing charges (some are zero).
- Avoid having two meters/accounts where one will do.
- For very low-use households, a no-standing-charge tariff usually wins.