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Energy standing charges explained
The standing charge is a fixed daily fee you pay whatever energy you use. Under the 1 October to 31 December 2026 price cap it averages 54.83p a day for electricity and 29.68p for gas, which comes to about £308 a year before you use a single unit.
What does the standing charge pay for?
It covers costs that don't depend on how much energy you use. These include maintaining the local and national networks, smart meter rollout, government schemes, and supplier operating costs. Ofgem sets the maximum standing charge, and the maximum unit rate, for default tariffs through the price cap every three months.
Standing charges and unit rates by region
Network costs vary across the country, so the cap varies too. For 1 October to 31 December 2026, the electricity standing charge ranges from 42.92p a day in London to 67.66p in Merseyside and North Wales. That's a difference of about £90 a year. Gas standing charges vary much less.
| Region | Electricity standing charge (per day) | Per year | Electricity unit rate | Gas standing charge (per day) | Gas unit rate |
|---|---|---|---|---|---|
| London | 42.92p | £157 | 26.60p | 30.20p | 8.15p |
| North West England | 45.68p | £167 | 26.49p | 29.81p | 7.86p |
| Southern England | 47.81p | £175 | 26.47p | 29.16p | 8.17p |
| East Midlands | 51.45p | £188 | 25.36p | 29.41p | 7.82p |
| Eastern England | 51.84p | £189 | 26.61p | 29.34p | 7.91p |
| South East England | 52.32p | £191 | 26.88p | 29.26p | 8.05p |
| North Scotland | 55.14p | £201 | 26.35p | 29.87p | 7.87p |
| South Wales | 55.41p | £202 | 26.55p | 29.96p | 8.09p |
| South West England | 55.58p | £203 | 26.58p | 29.31p | 8.12p |
| West Midlands | 57.23p | £209 | 25.60p | 29.71p | 7.90p |
| South Scotland | 61.41p | £224 | 26.11p | 29.89p | 7.87p |
| North East England | 61.58p | £225 | 25.46p | 29.79p | 7.92p |
| Yorkshire | 61.67p | £225 | 25.60p | 29.77p | 7.90p |
| Merseyside and North Wales | 67.66p | £247 | 27.86p | 30.08p | 7.91p |
Price cap maximums for Direct Debit, single-rate electricity customers and gas, 1 October to 31 December 2026. VAT: no VAT on domestic electricity from 1 October 2026 to 31 March 2027, 5% on gas. Ofgem publishes the regional figures, and our table follows the regional breakdown from taupia.com, checked against Ofgem's averages. Not sure which region you're in? It's set by your electricity network area and shown on Ofgem's regional rates page.
Why low users feel it most
A home using very little energy still pays the full daily charge. At the average rates, a flat using 1,500 kWh of electricity pays £200 in electricity standing charges and £395 for the units used, so more than a third of the bill is fixed. That is why Ofgem now requires suppliers to offer at least one tariff with a lower standing charge and higher unit rate. If you use little energy, ask your supplier about it and compare the yearly total.
Can I avoid the standing charge?
- Gas. If you go fully electric, for example with a heat pump or electric cooking, you can ask to have the gas meter capped or removed and stop paying about £108 a year in gas standing charges. See our heat pump vs gas boiler guide.
- Prepayment. Prepayment standing charges are aligned with Direct Debit, so switching payment method no longer avoids it.
- Time-of-use tariffs often have different standing charges from the cap. For example, Octopus Flux in Southern England is 47.47p a day. Include them when comparing. See Agile vs Flux and our smart tariff comparison.
FAQs
What is the standing charge for electricity in 2026?
Under the 1 October to 31 December 2026 price cap the GB average is 54.83p a day for Direct Debit customers, ranging from about 43p to 68p depending on region.
Why is my standing charge higher than my neighbour's?
You may be on a different tariff or supplier, or pay a different way. Fixed tariffs can set their own standing charges. Regions only differ if you are in different network areas.
Do I pay a standing charge if I use no energy?
Yes. It is charged every day you have a supply contract, even if the property is empty.
Is VAT charged on the standing charge?
From 1 October 2026 to 31 March 2027, domestic electricity, including its standing charge, has no VAT. Gas, including its standing charge, carries 5% VAT. Price cap figures quoted by Ofgem include any VAT.
Related calculators
Sources
- Ofgem – Energy price cap unit rates and standing charges (1 Oct–31 Dec 2026)
- Ofgem – Changes to the energy price cap, 1 October to 31 December 2026
- Taupia – Energy price cap by region, Oct–Dec 2026 (regional table from Ofgem data)
- mysmartenergy.uk – Octopus Flux prices, Southern England (20 Oct 2026)
Estimates only, not financial advice. Results use average UK figures and the assumptions shown. Your real costs depend on your home, tariff, region and installer quotes. Always get several quotes from certified installers and check current tariff rates before deciding. Don't rely on these results alone: see our disclaimer.