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Money & Inflation Nov 16, 2025 9 min read

What standing charges on your energy bill really pay for

Many people are angry that they pay energy standing charges every day even before using a single unit of gas or electricity. This article explains what standing charges actually cover, why they have become so controversial, how high they are right now, and what might change in the next few years, using only verified facts and sources.

Energy bills in this country are made up of two main parts: a unit rate for each kilowatt hour you use, and a daily standing charge you pay just for being connected. The standing charge is taken even if you use no energy at all, which is why so many people feel it is unfair.

At the same time, the regulator and suppliers argue that certain fixed costs have to be paid somehow, and spreading them across all customers through a daily fee is one way to do it. This article looks at what standing charges really pay for, how high they are at the moment, why there is so much debate around them, and what options are being discussed.

What a standing charge actually is

The energy regulator explains that a standing charge is a fixed daily amount added to your bill that you pay just for being connected to the electricity or gas network, regardless of how much you use. It sits alongside the unit rate you pay for each kilowatt hour of gas or electricity.
Source: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/energy-price-cap-explained

Citizens Advice describes it in similar terms as a daily fee for being connected to the gas grid or electricity network.
Source: https://www.citizensadvice.org.uk/consumer/energy/energy-supply/get-a-better-energy-deal/choosing-energy-tariff/

Trade body Energy UK and other guidance explain that standing charges typically cover:

How high standing charges are right now

For households on a standard variable tariff covered by the price cap, Ofgem publishes average standing charges each quarter for electricity and gas.

From 1 October to 31 December 2025, Ofgem's data show:

MoneySavingExpert summarises the same cap period as an average electricity standing charge of around 53.68p per day and gas around 34.03p per day for typical direct debit customers, with exact figures varying by region.
Source: https://www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/

Earlier price cap periods in 2024 showed even higher typical daily charges of about 60.12p for electricity and 31.41p for gas at one point, again averaged across England, Scotland and Wales.
Source: https://www.ofgem.gov.uk/news/changes-energy-price-cap-between-1-july-30-september-2024

At these levels, many households pay well over £300 a year in standing charges alone if they have both fuels, even before paying for any actual usage. This is why campaigners often compare the effect to a flat access fee.
Sources:

What costs the standing charge is supposed to cover

Ofgem and industry briefings say that standing charges are used to recover certain fixed costs that do not change much with actual consumption. These include:

A research briefing for Parliament notes that, after a series of supplier failures, some of the costs of protecting customers of failed firms were shifted into standing charges and network standing charges, helping to explain why these fixed fees rose even when unit prices moved in other directions.
Source: https://commonslibrary.parliament.uk/research-briefings/cbp-10339/

Why standing charges are so controversial

Consumer groups and money experts have raised several concerns about the way standing charges work today.

First, standing charges are the same for a given region and payment type regardless of whether someone is a high or low user. Energy UK itself acknowledges that this structure can disproportionately impact low consumption households.
Source: https://www.energy-uk.org.uk/publications/energy-uk-explains-standing-charges/

Parliamentary and media briefings also point out that:

MoneySavingExpert and its founder Martin Lewis have repeatedly highlighted that typical households can pay over £300 per year just for standing charges, calling this a moral hazard that hits low users hardest.
Sources:

How standing charges link to energy debt and affordability

High standing charges are one piece of a wider affordability problem. Ofgem has estimated that household energy debt has reached close to £4 billion, with many people unable to keep up with bills even after some support schemes and price cap falls.
Source: https://www.reuters.com/business/energy/uk-regulator-proposes-reforms-household-energy-debts-hit-5-billion-2024-12-12/

News coverage of recent price cap changes shows that:

Because standing charges are unavoidable once you have an active supply, people who are already in difficulty can build up arrears quickly if they miss payments, even if they are using very little energy. This is one reason why debt advice charities want more flexible options and better targeted support.

Can you avoid or reduce standing charges today

In practice, most standard tariffs under the price cap include standing charges. Ofgem and comparison sites explain that:

Citizens Advice notes that you may be able to find a different supplier with a slightly lower standing charge, but that overall differences are often small because of how network and regional costs are set.
Source: https://www.citizensadvice.org.uk/consumer/energy/energy-supply/get-a-better-energy-deal/choosing-energy-tariff/

For most people, the realistic steps are:

What changes are being considered

Because of public concern, Ofgem has launched a review of standing charges and related affordability issues in the domestic energy market. The regulator's papers and summary of responses show that it has been exploring:

Reuters reported that Ofgem has proposed reforms that would require suppliers to offer tariffs without standing charges, as part of a wider response to rising household energy debt.
Source: https://www.reuters.com/business/energy/uk-regulator-proposes-reforms-household-energy-debts-hit-5-billion-2024-12-12/

Citizens Advice and MoneySavingExpert have welcomed the discussion but warned that simply shifting costs from standing charges into unit rates will create winners and losers, so the design of any reform will matter.
Sources:

Practical tips if you are worried about standing charges

If you are concerned about these fixed costs on your bill, money guidance bodies and consumer groups suggest:

  1. Check you are on a suitable tariff
    Use trusted comparison tools or your supplier's information to see if there is a tariff that better fits your usage pattern, especially if you are a very low or very high user.
    Sources:

  2. Make sure bills are accurate
    Submit regular meter readings if you do not have a smart meter, so your bills reflect real usage and you are not overcharged on estimates.
    Source: https://www.citizensadvice.org.uk/consumer/energy/energy-supply/problems-with-your-energy-bill/energy-bill-too-high/

  3. Talk to your supplier early if you are struggling
    Suppliers must offer support such as affordable repayment plans and, in some cases, extra help for customers in vulnerable situations, especially where there is a risk of self-disconnection or unsafe rationing.
    Sources:

  4. Get independent debt or energy advice
    If standing charges and other energy costs are pushing you into arrears or forcing you to cut essentials, free advice from charities can help you look at options across all your bills and benefits, not just energy in isolation.

Key points to remember

  • Standing charges are a fixed daily fee that you pay just for having an active gas or electricity connection, on top of what you pay per unit of energy.
  • Official data show typical standing charges currently around 50–55p per day for electricity and 30–35p per day for gas on a standard variable tariff, depending on region and quarter.
  • These charges are meant to cover network, metering, policy and some supplier costs, but they have become highly controversial because they hit low users and people in hardship hardest.
  • The regulator is actively reviewing how standing charges work, and proposals for low or no standing charge tariffs are being developed, but any change will shift costs between different types of households.
  • You cannot simply opt out of standing charges while keeping a normal supply, but you can check tariffs, make sure bills are accurate, ask for support if you are struggling, and get independent advice if costs are becoming unmanageable.
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