Skip to content
Energy guide

Why is my standing charge so high, and would a low standing charge tariff help?

Short answer

A standing charge is a daily fee, paid even on days you use no energy. Yours can sit above the cap because fixed deals are not capped, paying on receipt costs more and rates vary by region. Ofgem's one-year pilot takes about £150 a year off dual fuel standing charges but raises unit rates, so it suits low users.

Updated

54.83p

Ofgem's average daily electricity standing charge cap by Direct Debit, 1 October to 31 December 2026

63.49p

The same average cap if you pay on receipt instead, called standard credit

£150

A year off dual fuel standing charges on Ofgem's pilot tariffs, with higher unit rates

The standing charge is the part of an energy bill you pay whether or not you use anything, so it hits low users hardest. This guide covers what it pays for, why yours can sit above the price cap, empty homes and unused gas meters, and who Ofgem's one-year low standing charge pilot suits.

The basics

What does a standing charge pay for?

The cost of keeping your home supplied, whether or not you use any energy that day.

  • Ofgem says the standing charge is a fee you pay every day, even on a day you use no energy. Your supplier sets it, within the cap if you are on a standard variable tariff.
  • Ofgem says it covers moving energy to your home, balancing supply and demand, installing and maintaining meters, supplier earnings and some government social and environmental schemes.
  • From April 2026, Ofgem moved Warm Home Discount costs out of standing charges and into the unit rate. The government also ended or moved into general taxation the funding for two schemes, which Ofgem said saves customers an average of £150.
  • Network costs pulled the other way: Ofgem said they added £66 a year from April 2026 under the current price control, called RIIO-3.
  • For 1 October to 31 December 2026, the cap's average Direct Debit standing charge is 54.83p a day for electricity, with no VAT, and 29.68p a day for gas, including 5% VAT. That is £308.46 a year before you use anything (Taupia's arithmetic: both rates times 365 days).
  • The cap limits the unit rate and standing charge, not your total bill. The more energy you use, the more you pay.

Sources: Ofgem: energy price cap and standing charges explained (read 15 October 2026); Ofgem: where your energy comes from (read 15 October 2026); Ofgem: changes to the energy price cap, 1 April to 30 June 2026 (read 15 October 2026); Ofgem: changes to the energy price cap, 1 October to 31 December 2026 (read 15 October 2026)

Above the cap

Why is my standing charge higher than the cap?

Usually because of the tariff you are on, how you pay or where you live, not because something is wrong.

  • You are on a fixed deal. Ofgem says the cap protects standard variable tariffs, and you are not protected by it once you agree a fixed tariff. Citizens Advice notes that a fixed tariff's standing charge can differ from the variable one.
  • You pay when the bill arrives. Ofgem's tables put the average standard credit standing charge at 63.49p a day for electricity and 37.49p for gas, against 54.83p and 29.68p by Direct Debit.
  • Prepayment is not the reason. Ofgem sets prepayment standing charges at the same level as Direct Debit, and its tables show the same 54.83p and 29.68p averages.
  • You have an Economy 7 or other multi-rate meter. These have their own cap tables, with an average Direct Debit electricity standing charge of 54.62p a day.
  • You live in a dearer region. Ofgem says standing charges depend on how many people live in your region, how much energy they use, what suppliers need to buy and the cost of the network. Citizens Advice says rural network areas such as North Wales and Mersey cost more.
  • Check your own standing charges against the cap for your region and the way you pay. Our regional pages set out all 14 regions from Ofgem's tables.

Sources: Ofgem: energy price cap and standing charges explained (read 15 October 2026); Ofgem: energy price cap unit rates and standing charges, 1 October to 31 December 2026 (read 15 October 2026); Citizens Advice: choosing your energy tariff (read 15 October 2026)

Empty homes

Do I still pay a standing charge if the home is empty?

Yes, while the supply stays connected. What changes is whether a low standing charge tariff will take you.

  • Ofgem says you pay the standing charge every day, even on days you use no energy, so an empty flat, a second home or a student house over the summer keeps building it up.
  • At the cap's average Direct Debit rates for 1 October to 31 December 2026, the two standing charges come to 84.51p a day, or about £5.92 a week (Taupia's arithmetic: 54.83p plus 29.68p).
  • The pilot is not built for empty homes. Ofgem lets pilot suppliers set a minimum use, to stop second home owners benefiting at the expense of others.
  • Octopus set its minimum at 666 kWh of electricity or 2,836 kWh of gas a year, and E.ON Next asks for at least 700 kWh of electricity and 2,900 kWh of gas.
  • Leaving a shared house for the holidays? Our guide to bills in an empty student house covers what keeps charging and how to split it.

Sources: Ofgem: energy price cap and standing charges explained (read 15 October 2026); Ofgem: energy price cap unit rates and standing charges, 1 October to 31 December 2026 (read 15 October 2026); Ofgem: British Gas derogation for lower standing charge pilot tariffs (18 August 2026) (read 15 October 2026); Octopus Energy: the Low Standing Charge tariff trial explained (7 July 2026) (read 15 October 2026); E.ON Next: trial of a lower standing charge tariff (9 June 2026) (read 15 October 2026)

Unused gas

Why am I paying a gas standing charge when I only use electricity?

Because the home has a gas meter. Whether you should pay depends on your contract and whether you have ever used gas there.

  • Ofgem has looked at this before. Its 2015 open letter describes households with a gas meter that use electricity for heating and cooking and still face a gas standing charge.
  • The six largest suppliers then agreed, for households in vulnerable situations, not to recover a standing charge from anyone who had never used gas at the address and had not agreed a contract, and to offer free meter removal to households that do not intend to use gas. Ofgem said some suppliers applied some of these practices to every household.
  • Ofgem added that it would not expect a waiver where you agreed a contract and simply have not used gas yet, for example because the gas only heats the home in winter.
  • Tell the supplier in writing that you have never used gas at the address, give it a meter reading, and ask whether it will stop or refund the standing charge.
  • In a rented flat, ask your landlord before asking for the gas meter to be removed. Citizens Advice warns that a landlord might try to keep some of your deposit if you change a meter they did not want changed.

Sources: Ofgem: open letter on households that do not use gas (28 May 2015) (read 15 October 2026); Citizens Advice: switching energy supplier or tariff if you're renting (read 15 October 2026)

Ofgem's pilot

What is Ofgem's low standing charge pilot?

A one-year trial with four suppliers, not a rule every supplier must follow.

  • In September 2025 Ofgem consulted on making every supplier offer at least one lower standing charge tariff. Many charities and consumer groups, most suppliers and just over half of the individuals who replied opposed the proposals.
  • Ofgem chose a one-year pilot instead and moved its start from April to June 2026. The tariffs go first to eligible customers of EDF, E.ON, Octopus and British Gas, with a limit on how many can sign up.
  • Ofgem expects dual fuel customers on a pilot tariff to pay about £150 a year less in standing charges than on the cap. The cut is split across both fuels, so single fuel customers may not get all of it.
  • It also expects suppliers to set higher unit rates, so a pilot tariff may cost more overall, depending on how much you use. Each supplier sets its own terms and eligibility.
  • The cap covers standard variable tariffs, and Ofgem says you are not protected by it on a fixed tariff. E.ON's pilot tariff is a 24-month fix, and British Gas's are its Fixed Lighter tariffs.
  • EDF's discount runs through its FreePhase time-of-use tariffs. Citizens Advice says a dynamic time-of-use tariff can carry its own supplier cap, which might be higher than Ofgem's.
  • The pilot covers England, Scotland and Wales. Ofgem says it will use the suppliers' data on pricing and take-up to decide its next steps on standing charges.

Sources: Ofgem: lower standing charge tariffs, next steps (updated 22 June 2026) (read 15 October 2026); Ofgem: energy price cap and standing charges explained (read 15 October 2026); Ofgem: E.ON Next derogation for lower standing charge pilot tariffs (26 June 2026) (read 15 October 2026); Ofgem: British Gas derogation for lower standing charge pilot tariffs (18 August 2026) (read 15 October 2026); EDF: Low Standing Charge Trial (6 July 2026) (read 15 October 2026); Citizens Advice: choosing your energy tariff (read 15 October 2026)

Supplier by supplier

Which suppliers offer a pilot tariff, and who can join?

Each supplier runs its own version. These are the terms Ofgem and each supplier have published.

  • EDF: available through its FreePhase tariffs and aimed at lower users. Eligible customers get £6.25 a month off each fuel's standing charge for a year, and EDF says there are no exit fees. New customers can opt in when they sign up to FreePhase, and existing FreePhase customers can ask to join.
  • E.ON Next: Next Lower Daily Fixed 24m v43, for electricity, Economy 7 electricity and gas. Ofgem let E.ON offer it only to existing customers signing up between 1 June 2026 and 31 May 2027. E.ON offers it to a random selection of eligible customers who pay by Direct Debit and use at least 700 kWh of electricity and 2,900 kWh of gas a year, and it charges a £100 exit fee per fuel.
  • Octopus Energy: Octopus offered its trial to 33,000 homes and says it is now full. It required at least 666 kWh of electricity or 2,836 kWh of gas a year, and Octopus says homes whose usage or meter type, such as prepayment, did not fit would not see it.
  • British Gas: Ofgem let British Gas offer its Fixed Lighter electricity and gas tariffs only to existing customers signing up between 11 August 2026 and 10 August 2027. Ask British Gas for the rates and whether you qualify.
  • E.ON and Octopus both say their pilot beats their own standard fix only for homes using under about 1,800 kWh of electricity and 7,500 kWh of gas a year.

Sources: EDF: Low Standing Charge Trial (6 July 2026) (read 15 October 2026); Ofgem: E.ON Next derogation for lower standing charge pilot tariffs (26 June 2026) (read 15 October 2026); E.ON Next: trial of a lower standing charge tariff (9 June 2026) (read 15 October 2026); Octopus Energy: the Low Standing Charge tariff trial explained (7 July 2026) (read 15 October 2026); Ofgem: British Gas derogation for lower standing charge pilot tariffs (18 August 2026) (read 15 October 2026)

Step by step

How do I check whether a pilot tariff would suit me?

Five steps from your own usage to a like-for-like comparison, before you agree to anything.

  1. 1

    Find your yearly usage

    Your bill or online account shows how many kWh of electricity and gas you used over the last 12 months.

  2. 2

    Check your standing charges

    Compare the daily standing charges on your bill with the cap for your region and the way you pay.

  3. 3

    Ask your supplier whether you qualify

    EDF, E.ON, Octopus and British Gas each set their own rules on who can join, so ask for the rates and terms.

  4. 4

    Work out the break-even

    Divide each fuel's yearly standing charge cut by the kWh you use. A unit rate rise bigger than that costs you more.

  5. 5

    Compare the whole year, including exit fees

    Price a full year on your own usage against your current tariff and the best fix, and check any exit fee before you agree.

Sources: Ofgem: lower standing charge tariffs, next steps (updated 22 June 2026) (read 15 October 2026); Ofgem: energy price cap unit rates and standing charges, 1 October to 31 December 2026 (read 15 October 2026); E.ON Next: trial of a lower standing charge tariff (9 June 2026) (read 15 October 2026)

Northern Ireland

Do standing charges and the pilot work the same in Northern Ireland?

No. Ofgem's cap and its pilot cover England, Scotland and Wales.

  • Ofgem's price cap tables cover addresses in England, Scotland and Wales, and its standing charge pilot is for customers across Great Britain.
  • In Northern Ireland the Utility Regulator regulates the electricity and gas industries, so none of the cap figures on this page apply there.
  • VAT differs too. GOV.UK says the temporary zero rate on domestic electricity applies in Great Britain only, so electricity in Northern Ireland keeps its 5% VAT.

Sources: Ofgem: energy price cap unit rates and standing charges, 1 October to 31 December 2026 (read 15 October 2026); Ofgem: lower standing charge tariffs, next steps (updated 22 June 2026) (read 15 October 2026); Utility Regulator: regulating electricity, gas and water in Northern Ireland (read 15 October 2026); GOV.UK: temporary zero rate of VAT on domestic electricity in Great Britain (read 15 October 2026)

Where Taupia fits

How can Taupia help with standing charges?

  • Upload a bill and Taupia reads your rates and usage, so you can see what your standing charges cost you and which usage band you are in.
  • It compares energy deals from 19 suppliers covering around 90% of the GB market, and switches only once your household approves.
  • Pilot tariffs are offered by each supplier to its own eligible customers, so ask your supplier about one, then compare its rates with the deals Taupia shows you.
  • In a shared home it splits each bill and tracks who has paid, without moving any money.
  • Taupia is free.
The arithmetic

Would a low standing charge tariff save me money?

Only if the unit rate rises by less than the standing charge falls. The table below works out the break-even for each of Ofgem's usage bands.

  • Inputs: Ofgem expects a cut of about £150 a year for dual fuel, split across both fuels. EDF splits it evenly, at £6.25 a month per fuel, so we use £75 a year for each fuel.
  • Usage: Ofgem's typical values from 1 July 2026 are 1,600, 2,500 and 3,800 kWh of electricity and 6,000, 9,500 and 14,000 kWh of gas a year for low, medium and high use.
  • Method: the break-even is £75 divided by the kWh you use. If a pilot tariff's unit rate is higher than your alternative by more than that, it costs you more over the year (Taupia's arithmetic).
  • Low users have the most to gain. At the cap's average Direct Debit rates, standing charges are about 26% of a low-use dual fuel bill of £1,208 a year, but about 13% of a high-use bill of £2,424 (Taupia's arithmetic).
  • In an electricity-only flat on low use, the electricity standing charge alone is about 32% of a £621 yearly bill (Taupia's arithmetic).
  • The suppliers' own figures agree. E.ON and Octopus put the point where their pilot stops paying at about 1,800 kWh of electricity and 7,500 kWh of gas, between Ofgem's low and medium bands.

Sources: Ofgem: lower standing charge tariffs, next steps (updated 22 June 2026) (read 15 October 2026); EDF: Low Standing Charge Trial (6 July 2026) (read 15 October 2026); Ofgem: review of typical domestic consumption values, decision (27 May 2026) (read 15 October 2026); Ofgem: energy price cap unit rates and standing charges, 1 October to 31 December 2026 (read 15 October 2026); E.ON Next: trial of a lower standing charge tariff (9 June 2026) (read 15 October 2026); Octopus Energy: the Low Standing Charge tariff trial explained (7 July 2026) (read 15 October 2026)

How much higher can a pilot tariff's unit rates be before it costs you more?

Ofgem usage bandElectricity break-evenGas break-even
Low: 1,600 kWh electricity, 6,000 kWh gas4.69p per kWh (£75 ÷ 1,600 kWh)1.25p per kWh (£75 ÷ 6,000 kWh)
Medium: 2,500 kWh electricity, 9,500 kWh gas3.00p per kWh (£75 ÷ 2,500 kWh)0.79p per kWh (£75 ÷ 9,500 kWh)
High: 3,800 kWh electricity, 14,000 kWh gas1.97p per kWh (£75 ÷ 3,800 kWh)0.54p per kWh (£75 ÷ 14,000 kWh)
Standing charge FAQ

Questions about standing charges and the pilot

Why is my standing charge higher than the price cap?

The cap only limits standard variable tariffs, so a fixed deal can carry a higher standing charge. Paying when the bill arrives costs more too: Ofgem's average standard credit electricity standing charge is 63.49p a day, against 54.83p by Direct Debit. Rates also vary by region, so check yours against your own region's cap.

Do I pay a standing charge if I use no energy?

Yes. Ofgem says the standing charge is paid every day, even on days you use no energy, for as long as the supply is connected. At the cap's average Direct Debit rates for October to December 2026, gas and electricity standing charges together come to 84.51p a day.

Can I get an energy tariff with no standing charge?

A few exist. Ofgem says some specialist suppliers offer low or no standing charge tariffs to prepayment customers, and Citizens Advice notes that some suppliers charge a higher rate for the first units you use instead. The fixed costs are still recovered either way, so compare the full year's cost on your own usage.

Who can join Ofgem's low standing charge pilot?

Eligible customers of EDF, E.ON, Octopus and British Gas, on each supplier's own terms. E.ON and British Gas offer their pilot tariffs only to existing customers, Octopus says its trial is full, and EDF offers its discount through its FreePhase tariffs. Suppliers can set a minimum use, which rules out most empty and second homes.

Will a low standing charge tariff save me money?

Only if you use little energy. Ofgem expects about £150 a year off dual fuel standing charges but higher unit rates. E.ON and Octopus say their pilots beat their standard fixes only below about 1,800 kWh of electricity and 7,500 kWh of gas a year, just above Ofgem's low usage band of 1,600 and 6,000 kWh.

Why do I pay a gas standing charge when I only use electricity?

Because the home has a gas meter. If you have never used gas there and never agreed a contract, ask the supplier to stop or refund the charge, and mention Ofgem's 2015 letter on households that do not use gas. In a rented flat, ask your landlord before asking for any meter to be removed.

Does the price cap cover standing charges in Northern Ireland?

No. Ofgem's price cap and its standing charge pilot cover England, Scotland and Wales only. In Northern Ireland the Utility Regulator regulates electricity and gas, and domestic electricity keeps its 5% VAT while the temporary zero rate applies in Great Britain.

Cite this page

Taupia. "Why is my standing charge so high, and would a low standing charge tariff help?". Last updated 15 October 2026. https://taupia.com/compare-energy-prices/standing-charges

See what your standing charges cost you

Upload a bill and Taupia reads your rates and usage, compares energy deals from 19 suppliers and switches only once your household approves. It is free, and nothing changes without your approval.