Can Renters Get No Standing Charge Energy Tariffs?

March 7th, 2025
Can Renters Get No Standing Charge Energy Tariffs?

Many renters in the UK pay energy billschosen by their landlord. They often do not have much say in their energy supplier. Some renters use prepayment meters. These meters usually charge higher rates and fees.

A no standing charge tariff gets rid of the daily standing charge. This means tenants only pay for the energy they use. However, this can lead to higher prices per unit for gas and electricity. Whether this is a good option depends on several factors. It includes the type of meter, energy usage, and the tenancy agreement.

Can Renters Switch Energy Suppliers?

Most tenants can change their energy suppliers. However, there are a few cases where this is not true:

Scenario Can You Switch? Details
You pay your own bills ✅   Yes If you have a direct contract with an energy supplier, you can choose a new supplier and switch to a good deal.
Landlord includes energy in rent ❌   No If your utility bills are part of your rent, your landlord controls the energy supply. You may ask to negotiate a better rate.
Prepayment meter in property ✅   Yes (with approval) You may need your landlord’s permission to switch from a prepayment meter to a standard tariff. Some suppliers allow smart meters to replace prepayment meters.
Commercial property rental ⚠️   Sometimes Business energy tariffs are often set by the landlord. Check your tenancy agreement for switching options.

Key takeaway: If you pay your own bills, you can change to a tariff that has no standing chargeor look for a better deal. If your landlord pays, you should ask about other options.

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No Standing Charge Tariffs vs. Standard Energy Tariffs

How No Standing Charge Tariffs Work

  • No daily standing charge – You are charged only for the energy you use.
  • Higher unit rates – Electricity and gas cost more for each kilowatt-hour (kWh).
  • Best for low energy users – If you use a little energy, you might save money.

Comparison: No Standing Charge vs. Standard Energy Tariffs

Tariff Type Daily Standing Charge Electricity Unit Rate (per kWh) Gas Unit Rate (per kWh) Best For
No Standing Charge Tariff £0.00 30p – 38p 8p – 12p Low energy users, tenants on prepayment meters
Standard Tariff (With Standing Charge) £0.60/day (avg) 24.50p 6.24p Most renters, especially those using heating

A no standing charge tariff is a good option for people who use low energy. However, if you use much energy, you might end up paying more because of higher unit rates.

Prepayment Meters and No Standing Charge Tariffs

Many rental homes have a prepayment meter. This means that tenants pay for electricity and gas before they use it. These meters usually have:

  • Customers who pay by cash have higher standing charges than those who use direct debit.
  • Utility companies offer fewer tariff choices.
  • There are no standing charge prepayment tariffs, and these may cost more per kWh.
Prepayment Meter Tariff Type Daily Standing Charge Electricity Unit Rate (per kWh)
Prepayment Meter (Standard Tariff) £0.72/day 28p – 30p
No Standing Charge Prepayment Tariff £0.00/day 32p – 38p

Key takeaway: If you have a prepayment meter, check tariffs from different energy suppliers. This is the easiest way to lower your costs.

Landlord Responsibilities for Energy Supply

What Can Landlords Control?

  • Prepayment meters – Some landlords use these to prevent unpaid bills.
  • Maximum resale price – Landlords cannot ask tenants for more than the maximum resale price decided by Ofgem.
  • Utility bills in rent – If included, landlords have to give meter readings and fair prices.

What Landlords Cannot Do

  • You cannot switch suppliers if you pay your own energy bill.
  • You can only charge tenants for the actual energy costs.
  • An Energy Performance Certificate (EPC) must be provided before you sign a tenancy agreement.

Tip: If you think you are being overcharged, reach out to Citizens Advice for assistance.

Landlord Responsibilities for Energy Supply

Energy Suppliers Offering No Standing Charge Tariffs for Tenants

Energy Supplier No Standing Charge Tariff Available? Best For
Utilita Energy ✅   Yes Prepayment meter users
E.ON Next ✅   Yes Low energy users
Octopus Energy ❌   No Flexible standing charge options instead
British Gas ❌   No Standard variable tariffs only

Key takeaway: Not every energy provider gives options without standing charges. Check with utility companies before you make a switch.

How to Switch to a No Standing Charge Tariff as a Renter

  1. Look at your tenancy agreement. Make sure to check if you need to have your own energy supplier.
  2. Compare energy deals – Look at price comparison websites to find a good deal for your postcode.
  3. Pick an energy provider. Reach out to them directly to create your online account.
  4. Arrange meter readings – Make sure your landlord or the previous tenant gives you precise meter readings when the tenancy ends.
  5. Set up payment – A direct debit is often the cheapest choice. However, you might also find options for prepayment meter tariffs.

Tip: If you live in Northern Ireland, Scotland, Wales, or England, the energy options can be different because of local rules.

FAQs About No Standing Charge Tariffs for Renters

Can tenants switch to a no standing charge tariff?

Yes, you can switch if you pay your own bills. If your landlord pays, you might need to get permission to make the change.

Are no standing charge tariffs a good idea for renters?

It depends on how much energy you use. If you use only a little bit of electricity or gas, you could save some money.

Can I change from a prepayment meter to a standard tariff?

Yes, some landlords want you to ask for permission before you change the type of meter.

Does my landlord have to provide an Energy Performance Certificate (EPC)?

Yes, landlords need to give you an EPC before you sign a tenancy agreement.

What happens to my energy supply at the end of the tenancy?

You should send in your meter readings. This way, you only pay for your usage before you move out.

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