Which UK Energy Suppliers Have the Lowest Standing Charges?

Standing charges are a fixed daily cost included in most UK electricity and gas tariffs. These charges help cover the cost of maintaining the energy infrastructure that delivers electricity and gas to homes.

Although the Ofgem energy price cap limits the maximum standing charge suppliers can apply to standard tariffs, suppliers can still structure their tariffs differently. This means some energy companies may offer tariffs with lower standing charges than others, depending on their pricing structure and available deals.

Because of this, households looking to reduce fixed daily costs often review multiple tariffs before switching suppliers. Many people choose to compare energy prices to see how standing charges and unit rates differ across the UK energy market.

You can compare energy prices to see how standing charges vary between suppliers.

What Is a Standing Charge in Energy Tariffs?

A standing charge is a fixed daily amount added to most electricity and gas tariffs. It applies every day that a property remains connected to the energy supply network.

The charge helps cover the cost of maintaining the national energy grid, meter systems, and the infrastructure required to deliver electricity and gas safely to homes.

Costs typically covered by standing charges

These costs apply regardless of how much energy a household uses, which is why standing charges appear even when energy consumption is low.

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Average Standing Charges in the UK

The Ofgem price cap sets a maximum limit on the standing charges suppliers can apply to standard variable tariffs.

Under the 2026 price cap, the typical daily charges for households paying by direct debit are approximately:

These figures represent national averages and may vary depending on the region, supplier and tariff structure.

Standing charges can also vary slightly depending on the payment method, meter type and local energy network costs.

Some households choose to compare energy suppliers before switching to a new deal.

Which Energy Suppliers Often Offer Lower Standing Charges?

Energy suppliers regularly change tariffs, so the supplier with the lowest standing charge can vary over time. However, several companies have historically offered tariffs with relatively lower daily charges compared with the market average.

Examples of suppliers known for competitive standing charge tariffs include:

• Octopus Energy
• EDF Energy
• E.ON Next
• British Gas

For example, Octopus Energy has previously offered electricity standing charges around 54p per day and gas around 29p per day on some tariffs, which were among the lowest available at the time.

Ofgem has also encouraged major suppliers to trial low or no standing charge tariffs, including British Gas, EDF, E.ON and Octopus, to give households more choice in how energy costs are structured.

Standing charges differ between suppliers, so it can be useful to compare energy tariffs.

Why Standing Charges Vary Between Suppliers

Standing charges can differ between suppliers for several reasons.

Tariff structure

Some suppliers design tariffs with lower standing charges but higher unit rates. Others use higher standing charges and lower unit rates.

Regional network costs

Standing charges can vary by region because the cost of maintaining energy infrastructure differs across the country.

Supplier pricing strategy

Suppliers may offer competitive tariffs to attract new customers or encourage switching.

Because tariffs change frequently, the supplier with the lowest standing charge today may not remain the cheapest option in the future.

Are Low Standing Charge Tariffs Always Cheaper?

A tariff with a lower standing charge is not always the cheapest option overall.

Energy tariffs combine two main costs:

• the standing charge, which is a daily fee
• the unit rate, which is the price per kilowatt hour (kWh) of energy used

A tariff with a lower daily charge may have a higher unit rate, which means households that use more electricity or gas could still pay more overall.

For this reason, it is important to consider the total annual cost rather than focusing on just one element of the tariff.

It may help to compare energy deals before choosing a tariff.

How to Compare Energy Tariffs With Different Standing Charges

When comparing energy tariffs, households should review the full pricing structure.

Key factors to consider

Households that use less energy may benefit from tariffs with lower standing charges.

Many people review several suppliers before switching and may choose to compare energy tariffs to understand how prices vary across the market.

Could Standing Charges Change in the Future?

Standing charges have been widely discussed in recent years as energy prices increased across the UK.

The energy regulator Ofgem has reviewed how standing charges are structured and has considered introducing alternative tariff options with lower daily fees.

Some suppliers are now trialling low or zero standing charge tariffs to give households more flexibility in how they pay for energy.

However, even if the standing charge is reduced, suppliers may increase the unit rate to recover the same costs.

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Correct as of 16 March 2026

FAQs about UK Energy Suppliers and Standing Charges