This guide explains what the daily standing charge on a gas or electricity bill is, how much it costs under the current Ofgem price cap, why it differs by region and how to tell whether a lower standing charge tariff would save you money, for households in England, Scotland and Wales. With standing charges explained in numbers rather than general terms, you can see exactly how much of your bill is fixed before you use a single kWh.
Quick answer: With standing charges explained simply, they are fixed daily amounts you pay to stay connected to the electricity or gas network, even on days you use no energy. Under the Ofgem cap for October to December 2026, average Direct Debit rates are 54.83p a day for electricity and 29.68p for gas, about £308 a year together.
What is a standing charge?
A standing charge is a fixed amount charged for every day you have a supply, regardless of how much energy you use. Ofgem’s price cap explainer puts it plainly: you pay it every day even if you do not use any energy that day. Your bill therefore has two parts for each fuel:
- The standing charge, in pence per day, multiplied by the number of days in the billing period.
- The unit rate, in pence per kWh, multiplied by the kWh you used.
Gas and electricity each have their own standing charge, so a home with both pays two. The money mainly covers the fixed costs of getting energy to your home, such as building and maintaining the gas and electricity networks, which exist whether you boil one kettle or a hundred.
How much are standing charges now?
For 1 October to 31 December 2026, the price cap average for Direct Debit customers is 54.83p per day for electricity and 29.68p per day for gas, according to Ofgem’s announcement. Unit rates are 26.32p per kWh for electricity and 7.97p per kWh for gas. Ofgem also notes that VAT is removed from electricity bills from 1 October 2026 to 31 March 2027, while gas still carries 5% VAT.
| Charge | Per day | Per 30-day month | Per year (365 days) |
|---|---|---|---|
| Electricity standing charge | 54.83p | £16.45 | £200.13 |
| Gas standing charge | 29.68p | £8.90 | £108.33 |
| Both fuels | 84.51p | £25.35 | £308.46 |
These are averages across Great Britain on Direct Debit for default (price-capped) tariffs. Your own figure depends on where you live, how you pay and your meter type. Fixed tariffs set their own standing charges, which can be higher or lower than the cap.
Why do standing charges differ by region?
Standing charges differ by region because the cost of building and running the local network, spread across the homes it serves, is different in each area. Ofgem’s regional rates page lists factors such as population density, average energy use in the region and the cost of developing and maintaining infrastructure. Sparsely populated areas with long networks generally pay more per home than dense cities.
Ofgem publishes the cap rates for each region every quarter. To find yours:
- Find your region on Ofgem’s regional standing charges and unit rates page (search by region in the tables).
- Choose the table for your payment method: Direct Debit, standard credit or prepayment.
- Compare those figures with your bill, which shows the standing charge in pence per day for each fuel.
- If you are on a fixed tariff, use the figures on your own bill or tariff information label instead.
- Multiply the daily figure by 365 to see what it costs you over a year.
How much of your bill is the standing charge?
The lower your energy use, the bigger the share of your bill the standing charge takes: for a home using 1,000 kWh of electricity a year it is over 40% of the electricity bill at current cap rates. The table shows the effective price per kWh once the electricity standing charge is spread over each kWh you use, at the average cap rates of 26.32p per kWh and 54.83p per day. The usage levels are example values.
| Example yearly electricity use | Unit cost | Standing charge | Total | Effective pence per kWh | Standing charge share |
|---|---|---|---|---|---|
| 500 kWh | £131.60 | £200.13 | £331.73 | 66.35p | 60% |
| 1,000 kWh | £263.20 | £200.13 | £463.33 | 46.33p | 43% |
| 1,800 kWh | £473.76 | £200.13 | £673.89 | 37.44p | 30% |
| 2,700 kWh | £710.64 | £200.13 | £910.77 | 33.73p | 22% |
| 4,000 kWh | £1,052.80 | £200.13 | £1,252.93 | 31.32p | 16% |
This is why cutting use saves less than many people expect: each kWh avoided saves 26.32p, but the £200.13 stays. To see the unit part of your bill for specific appliances, the electricity cost calculator and the home energy consumption calculator work from watts and hours.
Is a lower or zero standing charge tariff worth it?
A lower or zero standing charge tariff is worth it only if your yearly use is below the break-even point, which is the standing charge saved divided by the extra you pay per kWh. Such tariffs make up for the missing daily charge with a higher unit rate, so they suit low users and cost high users more.
Break-even kWh per year = annual standing charge saved ÷ extra unit rate per kWh.
The unit rates below are example values, not quoted offers; change them to the tariff you are considering. Each compares a zero electricity standing charge tariff with the October 2026 cap average (26.32p per kWh plus 54.83p per day, worth £200.13 a year).
| Example zero standing charge unit rate | Extra per kWh | Break-even yearly use | Cheaper for homes using |
|---|---|---|---|
| 30p per kWh | 3.68p | About 5,440 kWh | Less than about 5,440 kWh |
| 33p per kWh | 6.68p | About 3,000 kWh | Less than about 3,000 kWh |
| 36p per kWh | 9.68p | About 2,070 kWh | Less than about 2,070 kWh |
Example: a flat using 1,500 kWh of electricity a year compares the cap average with an example zero standing charge tariff at 36p per kWh. On the cap it pays 1,500 × 26.32p + £200.13 = £594.93. On the zero standing charge tariff it pays 1,500 × 36p = £540.00, saving £54.93. A home using 3,000 kWh would pay £989.73 on the cap and £1,080.00 on the zero standing charge tariff, so it would lose £90.27.
Ofgem has also set up a lower standing charge tariff pilot running for one year from June 2026, starting with EDF, E.ON, Octopus and British Gas. Ofgem says dual fuel customers on these tariffs could expect about £150 a year less in standing charges, offset by higher unit rates, and the number of customers who can join is limited. Use the break-even formula above with the actual rates offered.
Do you pay standing charges with prepayment, smart meters or solar panels?
Yes: prepayment and smart meter customers pay standing charges just like everyone else, and solar panels or a battery do not reduce them. On a prepayment meter, the daily charge is taken from your credit even when you use nothing. Ofgem’s price cap includes an adjustment intended to make prepayment and Direct Debit customers pay the same standing charge.
Solar panels and batteries cut the kWh you import, not the daily fee. That is why solar savings should be worked out from the unit rate only; the solar savings calculator and the home battery savings calculator both do this.
The one fixed charge you can remove is gas: a home that switches fully to electric heating, for example with a heat pump, and has the gas supply capped can stop paying the gas standing charge, worth £108.33 a year at the current cap. The heat pump running cost calculator compares the unit costs. Having a gas meter removed or the supply capped must be arranged through your supplier and network operator; gas work must only be done by a Gas Safe registered engineer.
Can you avoid standing charges on an empty property?
Not while the supply stays connected: the standing charge accrues every day, occupied or not. Example: a second home or empty flat with both fuels left connected for 90 days builds up about £76 in standing charges at the cap averages (90 × 84.51p), even with no energy used.
Some suppliers offer tariffs or arrangements with lower fixed charges, so it is worth asking. Permanently disconnecting a supply involves the network operator and can carry a cost, as can reconnecting later, so ask for the full price before deciding.
Frequently Asked Questions
Do I pay a standing charge if I use no energy?
Yes. Ofgem explains that the standing charge is paid every day even if you use no energy that day. At the October to December 2026 cap averages that is 54.83p a day for electricity and 29.68p a day for gas, on Direct Debit.
Why is my standing charge different from the cap average?
The cap average is for Great Britain as a whole on Direct Debit. Your figure depends on your region, payment method and meter type, and fixed tariffs set their own rates. Check the pence per day shown on your bill or tariff information label.
How much is the standing charge per year?
At the October to December 2026 cap averages, the electricity standing charge is £200.13 a year and the gas standing charge £108.33 a year, £308.46 for both fuels. These are averages on Direct Debit; regional rates differ.
Do solar panels reduce my standing charge?
No. Solar panels and batteries reduce the kWh you buy from the grid, but the daily standing charge stays the same while you remain connected. Work out solar savings using your unit rate and export rate, not the standing charge.
Who decides standing charges?
Suppliers set their own standing charges, but for default tariffs Ofgem’s price cap sets the maximum standing charge and unit rate in each region every quarter. Fixed tariffs are outside the cap, so check the standing charge before you sign up.
Checked October 2026 by the Solaxyra Editorial Team. Sources: Ofgem: energy price cap 1 October to 31 December 2026, Ofgem: energy price cap explained, Ofgem: standing charges and unit rates by region, Ofgem: lower standing charge tariffs next steps.