No Standing Charge vs Standard Variable Tariff: Which Wins?

Energy suppliers in the UK offer several types of energy tariffs, each structured differently depending on how energy costs are charged. Two tariff types that often raise questions are no standing charge tariffs and standard variable tariffs (SVTs).

A no standing charge tariff removes the daily standing charge, meaning customers only pay for the energy they use. However, these tariffs usually include higher unit rates, which can increase the overall cost of energy depending on how much electricity or gas a household consumes.

A standard variable tariff, sometimes called a variable energy tariff, is the default tariff offered by most energy suppliers. Prices on these tariffs can change depending on market conditions, although standard variable rates are limited by the Ofgem energy price cap.

Understanding how these two tariff types work can help households decide which option may be better suited to their energy usage before choosing an energy deal or deciding to compare energy prices.

You can compare energy prices to see how different tariff types affect your overall energy bill.

What Is a No Standing Charge Energy Tariff?

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

Instead of paying a fixed fee each day, customers only pay for the amount of energy they use. However, energy providers must still recover the costs of supplying electricity and gas to homes.

These costs are usually incorporated into the unit cost of energy.

How these tariffs work

Because of this structure, households with extremely low energy consumption may benefit from avoiding the daily standing charge.

However, households that use larger amounts of electricity or gas may find that higher unit rates increase their overall energy bills.

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What Is a Standard Variable Tariff?

A standard variable tariff (SVT) is the default tariff offered by most energy suppliers when customers are not on a fixed contract.

Unlike a fixed rate tariff or fixed energy deal, the unit price on a variable tariff can change depending on market conditions and wholesale energy prices.

However, the Ofgem energy price cap limits how much suppliers can charge customers on these tariffs.

Key features of a standard variable tariff

Because these tariffs do not lock customers into a contract, they are often used temporarily while households review other available tariffs.

If you want to estimate your potential savings, you can try the energy bill calculator based on your household usage.

How the Ofgem Energy Price Cap Affects SVTs

The energy price cap was introduced to protect customers on default tariffs from excessive pricing.

The cap limits:

• the maximum daily standing charge
• the maximum unit price for electricity and gas

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

• January
• April
• July
• October

Although the cap allows for energy price changes, it prevents suppliers from increasing prices beyond the regulated maximum.

This provides some stability for households on standard variable tariffs.

Comparing No Standing Charge Tariffs and Standard Variable Tariffs

Both tariffs structure energy costs differently, which means the best option depends largely on household energy usage.

Tariff comparison

No standing charge tariffs may benefit households with extremely low energy consumption, while SVTs provide flexibility and regulatory protection.

Who Benefits Most From Each Tariff?

Different households may benefit from different tariff structures depending on their energy usage patterns.

No standing charge tariffs may suit

• homes with very low energy use
• second homes or holiday properties
• properties with solar panels or renewable energy systems
• households that spend long periods away from home

Because there is no daily standing charge, households that use very little electricity or gas may reduce their total bills.

Standard variable tariffs may suit

• households that want flexibility without long-term contracts
• customers who want the protection of the price cap
• customers waiting for better fixed energy deals
• households planning to switch suppliers soon

Many customers move from an SVT to a fixed rate tariff when they want greater price certainty.

It may help to review current energy tariffs before deciding which tariff structure works best.

Potential Drawbacks of Each Tariff

Both tariff types have disadvantages that households should consider.

Disadvantages of no standing charge tariffs

Households that use a significant amount of electricity or gas may pay more overall due to higher unit rates.

Disadvantages of standard variable tariffs

Because of these factors, SVTs are often considered a temporary tariff while customers search for better options.

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Which Energy Suppliers Offer These Tariffs?

Most UK energy suppliers offer standard variable tariffs, while fewer suppliers offer tariffs without standing charges.

Suppliers offering standard variable tariffs

Examples of suppliers providing SVTs include:

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

Many suppliers offer slightly lower prices for customers paying by direct debit compared with other payment methods.

Suppliers offering no standing charge tariffs

Some suppliers have introduced tariffs with reduced or zero standing charges, although availability varies depending on region and tariff structure.

Tariff availability can also depend on:

• postcode and local network costs
• meter type
• payment method
• supplier pricing models

Customers should review the list of energy suppliers available in their area before switching.

Many households choose to compare energy suppliers to understand how standing charges and unit rates vary between providers.

How to Choose the Right Energy Tariff

Choosing the right tariff depends on how much energy a household uses and how much price certainty they want.

Factors to consider

Many modern tariffs also work alongside a smart meter, allowing households to monitor energy consumption more closely.

Reviewing tariffs regularly can help households identify opportunities to switch to a better deal.

Last Updated 16 March 2026

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