Comparing No Standing Charge vs Low Standing Charge Tariffs

Energy tariffs in the UK usually include a daily standing charge and a unit rate for electricity and gas. The standing charge is a fixed daily fee that helps cover the cost of maintaining the energy network, metering systems and supplier services.

In recent years, rising energy costs have led some suppliers to introduce alternative tariff structures. These include low standing charge tariffs and no standing charge tariffs, which adjust how fixed costs are distributed between daily fees and unit rates.

A no standing charge tariff removes the daily fee completely and shifts the cost into higher unit rates. A low standing charge tariff keeps the daily fee but reduces it, usually offering lower unit rates than zero standing charge tariffs.

Understanding how these tariff types work can help households decide which structure may be more suitable for their energy use before choosing an energy deal or deciding to compare energy prices.

You can compare energy prices to see how standing charges and unit rates differ between suppliers.

What Is a No Standing Charge Energy Tariff?

A no standing charge tariff removes the daily standing charge normally applied to electricity and gas tariffs.

Instead of paying a fixed fee each day, customers only pay for the amount of energy they use. However, energy suppliers still need to recover the cost of operating the energy system.

To compensate, suppliers usually increase the unit rate per kilowatt hour (kWh).

How this tariff structure works

This structure may benefit households that use very little energy, but households with higher consumption may pay more overall.

What Is a Low Standing Charge Tariff?

A low standing charge tariff reduces the daily fee rather than removing it completely.

Customers still pay a standing charge each day, but it is lower than the average rate. In return, the unit cost of electricity and gas is typically lower than on zero standing charge tariffs.

Key features of low standing charge tariffs

This pricing model is designed to provide a balance between fixed costs and energy usage.

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Why Standing Charges Exist in Energy Tariffs

Standing charges are used by energy suppliers to cover the cost of maintaining the UK’s energy infrastructure.

These costs include:

• maintaining the electricity grid and gas pipelines
• managing supplier operations in the energy market
• providing metering services including smart meters
• funding supplier failures and industry levies

Because these costs exist regardless of energy usage, most tariffs include a daily standing charge.

When that charge is removed or reduced, the costs are redistributed into the unit rate.

If you want to estimate the impact on your bills, you can try the energy bill calculator using your typical energy usage.

Comparing No Standing Charge and Low Standing Charge Tariffs

Both tariff types aim to reduce the impact of standing charges, but they do so in different ways.

Tariff comparison

This means the best tariff depends largely on household energy consumption.

Who Benefits Most From Each Tariff?

Different households may benefit from different tariff structures depending on how much energy they use.

No standing charge tariffs may suit

• households with extremely low energy use
• second homes or holiday properties
• homes left empty for long periods
• properties with solar panels or renewable energy systems

Because there is no daily standing charge, these households avoid paying fixed fees when energy consumption is low.

Low standing charge tariffs may suit

• households with moderate energy consumption
• customers looking for a balance between unit rates and daily charges
• homes that want to reduce fixed costs without paying higher unit prices

These tariffs may offer a more balanced cost structure for households that use electricity and gas regularly.

Potential Drawbacks of Each Tariff

Although both tariffs aim to reduce standing charges, they can also have disadvantages.

Disadvantages of no standing charge tariffs

Households that use a significant amount of electricity or gas may find these tariffs increase their total energy bills.

Disadvantages of low standing charge tariffs

For many households, a low standing charge tariff may still be more predictable than a zero standing charge plan.

Reviewing current energy tariffs can help you understand how low standing charge deals compare with other options.

Which Energy Suppliers Offer These Tariffs?

Some UK energy suppliers offer tariffs with reduced or zero standing charges, although availability can vary depending on postcode and tariff structure.

Suppliers offering low standing charge tariffs

Examples include:

• British Gas
• Octopus Energy
• EDF Energy

These suppliers may offer tariffs with lower daily charges depending on the specific energy deal.

Suppliers offering no standing charge tariffs

Some suppliers have introduced tariffs with zero standing charges, although these are less common.

Examples include:

• Utilita Energy
• E.ON Next
• regional suppliers depending on postcode

Customers should always review the list of energy suppliers available in their region when comparing tariffs.

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How the Ofgem Price Cap Affects Standing Charges

The Ofgem energy price cap regulates the maximum price suppliers can charge customers on default tariffs.

The cap includes limits on:

• the daily standing charge
• the unit rate for electricity and gas

The price cap is reviewed four times each year, usually in:

• January
• April
• July
• October

Although the cap regulates standard tariffs, suppliers can still introduce alternative pricing models such as low or zero standing charge tariffs.

Many households choose to compare energy suppliers before switching to a new tariff.

How to Compare Energy Tariffs

Choosing the right tariff requires looking at the total cost of energy rather than focusing on a single element.

Key factors to review

Many households regularly compare energy tariffs to understand how different pricing structures affect their energy bills.

Last Updated 16 March 2026

FAQs About No Standing Charge vs Low Standing Charge Tariffs

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