Standing Charges: Daily Fees Explained
You pay a fixed amount every day before you’ve used a single unit of power, and it’s easy to miss on the paperwork. Here’s what standing charges pay for, why suppliers can’t remove them, and how they fit into your annual cost.
Next step: If you use under about 50,000 kWh a year, you can get a quote in under 90 secs online — fast, no obligation. Bigger supply, half-hourly metering, or prefer chat? Use the contact page.
What Standing Charges Cover
Standing charges are fixed daily fees you pay regardless of consumption—they add up even on quiet days. Pair this page with how bills are built and deemed rates so you compare whole-year costs.
What you pay for: Network maintenance, metering, billing and a mix of policy costs—rolled into that daily pence. It connects to wider bill lines we cover under pass-through charges and renewal timing when you re-tender.
Typical Small Business Rates
On Fixed Contract:
- Electricity: 30-80p/day (£110-£292/year)
- Gas: 20-60p/day (£73-£219/year)
- Total for both: £180-£510 annually before any consumption
On Deemed/Out-of-Contract Rates:
- Electricity: £1.20-£2.00/day (£438-£730/year)
- Gas: 80p-£1.50/day (£292-£548/year)
- Often much higher than a contract: out-of-contract rates usually raise both unit prices and standing charges—compare the full annual cost, not one line in isolation.
Why Deemed Rates Hurt
When your contract expires without renewal, you automatically roll onto deemed rates. Standing charges spike alongside unit rates.
Example: Contract standing charge 60p/day (£219/year). Deemed standing charge £1.80/day (£657/year). Extra cost: £438/year just in standing charges, before any kWh usage!
Can You Reduce Them?
No. Standing charges are set by network operators and suppliers. You cannot negotiate them down.
What matters: Total annual cost = (kWh × Unit Rate) + (365 × Standing Charge). Compare totals, not individual components. We compare total costs across all suppliers to find your best deal.
Related Guides
Understanding bills
Read guide →Deemed rates
Read guide →Pass-through charges
Read guide →Your next step: When you are ready to compare business tariffs, get a business energy quote online (typically under a minute, no obligation). Larger supply, half-hourly metering, or you prefer messaging? See the contact page.