Energy · Guide
Energy standing charges explained
From 1 October 2026 to 31 December 2026, the Ofgem price cap puts a typical home paying by Direct Debit at £1,723 a year: electricity 26.32p per kWh plus 54.83p a day, gas 7.97p per kWh plus 29.68p a day.
Today's price cap at a glance
Price cap now · Ofgem
£1,723 a year, typical home
Electricity £858 · Gas £865 · 1 Oct 2026 to 31 Dec 2026
What a standing charge is
A standing charge is a fixed daily amount you pay for each fuel, even on days you use no energy. You pay it on top of the price for the energy you use, so electricity and gas each have their own.
Ofgem caps the standing charge on standard variable tariffs. It sets the cap every three months, from 1 January, 1 April, 1 July and 1 October. The cap limits the daily standing charge and the unit rate, but not your total bill. The current rates are shown live on this page.
Fixed tariffs hold your standing charge for the length of the deal, usually 12 to 24 months. To see how the two types differ, read our fixed vs variable guide.
Who it hits hardest
Low-use homes pay more for every unit of energy they use. The standing charge is the same fixed daily amount, so fewer units share the cost.
Imagine two homes on the same tariff. One uses plenty of gas and the other uses very little. Both pay the same daily standing charge, but the quieter home spreads that cost across fewer units. Its price per unit ends up higher.
This can hit single occupants, people who work away from home and anyone with a small flat. Ofgem's typical household uses 2,500 kWh of electricity and 9,500 kWh of gas a year. If your use is well below that, check your own figures. Use the energy bill calculator to see what you really pay.
Can you pay less standing charge?
Your standing charge is a fixed daily amount for each fuel, and Ofgem caps it on standard variable tariffs. You can still cut your overall bill, mainly through how you pay and which tariff you choose.
Paying by Direct Debit is the cheapest way to pay on the price cap. Standard credit costs more, so setting up Direct Debit is a quick win.
A fixed tariff holds your unit rates and standing charges for the length of the deal, usually 12 to 24 months. That gives you certainty, though leaving early can cost an exit fee per fuel. Read our fixed vs variable guide before you choose.
Next, check the current cap rates and sort the deals by yearly cost.
Straight answers
Questions people ask
- Why do I pay a standing charge?
- You pay a standing charge because it is a fixed daily amount for each fuel, whatever you use. It applies even on days when you use no energy at all. On standard variable tariffs, Ofgem caps the daily standing charge along with the unit rate.
- Is the standing charge the same everywhere?
- It depends on your tariff. Ofgem caps the daily standing charge on standard variable tariffs, while a fixed tariff holds its own charge for the length of the deal. Each fuel has its own standing charge, so check electricity and gas separately. The current price cap rates are shown live on this page.
- Can I avoid the standing charge?
- No, you cannot avoid the standing charge. It is a fixed daily amount for each fuel, so you pay it even on days you use no energy. You can still lower what you pay overall. Paying by Direct Debit is the cheapest way to pay on the price cap. A fixed tariff holds your standing charge for the length of the deal.