Home energy guide

Standing charges explained

A standing charge is a fixed daily fee for being connected, whether you use any energy or not. At the current cap, electricity and gas together come to about £308 a year before you've boiled a kettle.

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What you pay just to be connected

Under the current cap, the daily charges for electricity and gas together add up to about £308 a year, before you've boiled a single kettle. That's roughly £200 for electricity and £108 for gas (GB averages, direct debit, 1 October–31 December 2026).

See the numbers
Ofgem cap, 1 Oct–31 Dec 2026, GB average, direct debit
Per day as chargedPer day with 5% VATPer day before VATPer year as charged
Electricity54.83p57.57p54.83p£200.13
Gas29.68p29.68pabout 28.27p£108.33
Both84.51p£308.46

Electricity has no VAT from 1 October 2026 to 31 March 2027 (Ofgem); gas includes 5% VAT. Regional charges vary around these averages.

What it pays for

Costs that don't depend on how much you use: the networks that bring energy to your door, suppliers' running costs and some policy costs. Ofgem sets the maximum as part of the cap.

Why it stings low users most

If you use little, the standing charge is a big slice of your bill. For a small flat it's about a third of the electricity bill; for a big user it's closer to an eighth.

See the numbers

A flat using 1,500 kWh a year pays about £395 in units at 26.32p and £200 in standing charge. A home using 5,000 kWh pays about £1,316 in units, so the standing charge is only 13%.

Ways to pay less

Two-rate tariffs

Economy 7 and similar tariffs sometimes have a higher standing charge. In Jersey, for example, it costs about £16.50 a year more than the single-rate tariff. See Economy 7 vs smart tariffs.

See the numbers

Jersey Economy 7 daily service charge 28.73p against 24.21p on General Domestic (including GST).

Guernsey and Jersey

Compare the islands in our Guernsey and Jersey tariffs guide.

Solar, batteries and standing charges

Solar and batteries cut the units you buy, but not the standing charge, unless you go fully off-grid, which is rarely practical or cheap. Include it when working out savings in the solar calculator and the battery calculator.

Check yours

Your bill shows your standing charges and unit rates. Pop them into the tariff calculator, and read the price cap explainer to see how they're set.

Moving home

Standing charges start the day you take over the supply, even if the place is empty. Between tenants or mid-renovation, budget about 84.51p a day for electricity and gas, roughly £25.70 a month.

Prepayment and other ways to pay

Ofgem sets different cap levels for different payment methods. On prepayment or pay-when-billed, your standing charge may differ from the direct debit averages above. Your bill or supplier app shows what you actually pay.

Frequently asked questions

What is the standing charge in October 2026?

At the 1 October–31 December 2026 cap, the GB average is 54.83p a day for electricity (no VAT) and 29.68p a day for gas including 5% VAT (28.27p without VAT), on direct debit.

Can I avoid the standing charge?

Not while connected. You can remove the gas standing charge by disconnecting gas if you no longer use it, and compare tariffs on total cost.

Do Guernsey and Jersey have standing charges?

Yes. Guernsey's Super Economy 12 has £89.35 a quarter; Jersey's General Domestic service charge is 24.21p a day including GST.

Why is my standing charge different from the average?

Caps vary by region and payment method.

Estimates, not advice. These figures are illustrations from public sources on the dates shown. They are not financial advice. Prices, grants and tariffs change; check them with the supplier or installer and get at least three quotes from MCS-certified installers.

Related guides

Sources (checked 27 October 2026 unless stated)

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