What is a standing charge?

A fixed daily amount your supplier charges for keeping you connected, regardless of use. It covers network costs, metering, supplier operating costs and some policy costs. Under the cap the Direct Debit average is 54.83p a day for electricity and 29.68p for gas.

Which region has the highest standing charge?

Merseyside and Northern Wales for electricity at 67.66p a day; the cheapest is London at 42.92p. Gas varies far less: 29.16p to 30.20p.

Why did the electricity standing charge fall in October 2026?

Because VAT was removed from domestic electricity for six months from 1 October 2026. Underlying network costs rose; the tax cut more than offset them. Gas keeps 5% VAT, so its standing charge rose slightly.

Can I avoid the standing charge?

Only by choosing a tariff with a lower or zero standing charge — Ofgem now requires suppliers to offer a lower-standing-charge option — which always pairs with a higher unit rate. It suits very low users (an empty second home) and rarely anyone else.

Do prepayment customers pay more?

Not on the standing charge: since April 2024 the cap levelises it with Direct Debit. Standard credit (paying on receipt of a bill) carries the highest standing charge of the three methods.

Ofgem · 1 October to 31 December 2026

Standing charges by region: October to December 2026

The daily charge you pay before using a single unit. Electricity ranges from 42.92p a day in London to 67.66p in Merseyside and Northern Wales; gas from 29.16p to 30.20p. Direct Debit figures from Ofgem's regional tables.

Electricity standing charge, ranked (Direct Debit, single rate)

#	Region	Oct–Dec 2026	Jul–Sep 2026	A year
1	London	42.92p	44.78p	£157
2	North Western England	45.68p	47.61p	£167
3	Southern England	47.81p	49.70p	£175
4	East Midlands	51.45p	53.60p	£188
5	Eastern England	51.84p	53.94p	£189
6	South Eastern England	52.32p	54.45p	£191
7	Northern Scotland	55.14p	57.55p	£201
8	Southern Wales	55.41p	57.84p	£202
9	South Western England	55.58p	57.89p	£203
10	West Midlands	57.23p	59.71p	£209
11	Southern Scotland	61.41p	64.17p	£224
12	North Eastern England	61.58p	64.29p	£225
13	Yorkshire	61.67p	64.38p	£225
14	Merseyside and Northern Wales	67.66p	70.76p	£247

Gas standing charge, ranked (Direct Debit)

#	Region	Oct–Dec 2026	Jul–Sep 2026	A year
1	Southern England	29.16p	28.53p	£106
2	South Eastern England	29.26p	28.63p	£107
3	South Western England	29.31p	28.68p	£107
4	Eastern England	29.34p	28.70p	£107
5	East Midlands	29.41p	28.78p	£107
6	West Midlands	29.71p	29.06p	£108
7	Yorkshire	29.77p	29.12p	£109
8	North Eastern England	29.79p	29.15p	£109
9	North Western England	29.81p	29.17p	£109
10	Northern Scotland	29.87p	29.22p	£109
11	Southern Scotland	29.89p	29.24p	£109
12	Southern Wales	29.96p	29.30p	£109
13	Merseyside and Northern Wales	30.08p	29.42p	£110
14	London	30.20p	29.52p	£110

What the standing charge pays for

Roughly, the electricity standing charge is the cost of the distribution network in your region (the largest slice, and the reason for the regional spread), a share of the national transmission network, metering and the smart-meter rollout, supplier operating costs, the levelisation allowance that keeps prepayment and Direct Debit customers on the same daily charge, and the cost of customers who never paid. Gas standing charges vary less because gas network charges are flatter across the country. The electricity total fell in October 2026 only because VAT was taken off; without that the underlying charge would have risen.

A dual-fuel home pays £308 a year before using anything

At the GB average, 54.83p plus 29.68p a day is £308 a year. In Merseyside and Northern Wales the electricity element alone is £247. For a household using little energy the standing charge can be a third of the bill, which is why Ofgem now requires every supplier to offer a lower-standing-charge tariff alongside the default — a higher unit rate in exchange for a lower daily fee. The bill calculator shows the break-even for your use.

Business standing charges

Business contracts set their own standing charges, often quoted per day but sometimes per month or as a capacity charge (kVA) for half-hourly sites; there is no cap and the range is wide. A high standing charge on a low-use site is a common reason a “cheap unit rate” contract costs more overall — the tariff benchmark works both elements together.

Sources

Ofgem — Energy price cap unit rates and standing charges, read 12 September 2026
Ofgem — Lower standing charge tariffs: next steps

FAQs

Standing charges

What is a standing charge?: A fixed daily amount your supplier charges for keeping you connected, regardless of use. It covers network costs, metering, supplier operating costs and some policy costs. Under the cap the Direct Debit average is 54.83p a day for electricity and 29.68p for gas.
Which region has the highest standing charge?: Merseyside and Northern Wales for electricity at 67.66p a day; the cheapest is London at 42.92p. Gas varies far less: 29.16p to 30.20p.
Why did the electricity standing charge fall in October 2026?: Because VAT was removed from domestic electricity for six months from 1 October 2026. Underlying network costs rose; the tax cut more than offset them. Gas keeps 5% VAT, so its standing charge rose slightly.
Can I avoid the standing charge?: Only by choosing a tariff with a lower or zero standing charge — Ofgem now requires suppliers to offer a lower-standing-charge option — which always pairs with a higher unit rate. It suits very low users (an empty second home) and rarely anyone else.
Do prepayment customers pay more?: Not on the standing charge: since April 2024 the cap levelises it with Direct Debit. Standard credit (paying on receipt of a bill) carries the highest standing charge of the three methods.

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