- Ofgem: it is “the standing charge, which you pay every day even if you do not use any energy on that day”.1
- By Direct Debit the averages are 54.83p a day for electricity and 29.68p a day for gas, 1 October to 31 December 2026.2
- No supplier has to offer a low or zero standing charge tariff. Ofgem is running a voluntary pilot instead.3
- Gas standing charges are to be abolished, with the cost moved into unit rates (announced, needs legislation).4
- Last checked: 28 October 2026.
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What standing charges pay for
Ofgem says the cap's standing charge covers costs including network costs, policy costs, operating costs and “making sure prepayment and Direct Debit customers pay the same standing charge (levelisation allowance)”.1
It also varies by region, because of how many people live there, how much energy is used, what the supplier needs to buy and the cost of the network.2
Lower standing charge tariffs
Ofgem: “we are launching a one-year, lower standing charge tariff pilot starting from June 2026.” The suppliers in the pilot are EDF, E.ON, Octopus and British Gas.3
Ofgem expects suppliers to set higher unit rates on these tariffs, so a lower standing charge is not cheaper for everyone. It depends on how much you use.3
Budget 2026: gas standing charges
Gas standing charges: the Budget asks Ofgem to abolish them, “aiming for delivery by the end of 2027” or as soon as possible after (announced, needs legislation). “Ofgem will ensure that energy suppliers recover these costs through gas unit rates instead”, so the cost moves into the price per kWh: you will not save the whole standing charge.4
GOV.UK: “Instead, these fixed costs will be paid on the unit rate”, and “the government will set out in due course targeted mitigation for a small number of households”.5
Electricity standing charges: “the government is also committing to reform electricity standing charges and will set out details next year” (announced, needs legislation).4
Northern Ireland
Northern Ireland is not covered by Ofgem's cap. The Utility Regulator says: “We scrutinise and approve the maximum tariffs that Power NI can charge its customers”.6