Which energy company has the cheapest standing charges? (2025)

Standing charges are an important part of energy bills in the UK. They are the set daily costs that energy companies charge customers, no matter how much energy is used.

Knowing about and comparing standing charges can make a big difference for households trying to cut their energy costs.

This article looks at which energy companies have the lowest standing charges, giving tips on how these charges differ and what you should think about when picking an energy company.

What are standing charges?

Standing charges are a fixed daily fee that energy providers charge to cover the costs of maintaining the energy network, including the pipes, wires, and meters that deliver electricity and gas to homes and businesses. No matter how much energy you use, these charges are applied, meaning you’ll pay them even if you don’t use any energy on a particular day.

The standing charge typically covers:

• Maintenance of the energy grid and pipelines.
• Meter readings and associated administrative costs.
• Government energy schemes, such as renewable energy initiatives.

While standing charges may seem small each day, they add up over the year, making them an important thing to think about when looking at energy plans.

Which energy supplier has the lowest standing charges in 2025?

Octopus Energy offers the lowest standing charge in the UK as of May 2025. Their electricity standing charge is 54.84p per day, and their gas standing charge is 29.43p per day, making them the most affordable supplier for both fixed and variable tariffs.

We’ve taken a look at some of the tariffs available from the main suppliers in May 2025 to compare the standing charges they have on offer. As you can see from our table below, even with the cheapest tariff, you will be paying over £300 a year.

The most expensive of the tariffs we looked at is the British Gas fixed tariff, which is £17 more expensive per year than Octopus.

Bear in mind that this is based on being based in the East Midlands, so your rate will vary based on your location.

Which energy suppliers have no standing charge?

Utilita Energy is the only UK supplier offering a tariff without a standing charge as of May 2025. This tariff eliminates the daily fee charged by energy providers, allowing you to pay solely for the energy you use. It suits homes with specific energy needs but may not be ideal for everyone.

What is Utilita Energy’s no-standing-charge tariff?

Utilita Energy focuses on pay-as-you-go energy plans, making it a popular choice for homes wanting to keep track of and manage their energy use. Their no-standing-charge tariff is aimed at low-energy users, where fixed costs can make up a large part of the bill. Instead of a daily fee, customers are charged slightly higher prices for the electricity and gas they use.

Who benefits most from this tariff?

No-standing-charge tariffs, like the one offered by Utilita Energy, are best for:

• Low-energy households: If you use very little energy, you won’t pay for days when little or no energy is used.
• Second homes or holiday properties: For homes that are empty for long periods, a tariff with no standing charge makes sure you’re not paying for energy when the property isn’t being used.
• Customers with irregular usage: Homes with uneven energy use, such as people who travel often, may find this tariff lowers unnecessary costs.

If you don’t fall into one of the above categories, you may be better off considering suppliers based on unit rate and standing charge combined. You can find the cheapest tariffs available right now in our up to date guide.

Why do standing charges vary by region?

The cost of standing charges can vary widely depending on several factors:

1. Regional Variations
   • Standing charges vary by region because the cost of keeping the infrastructure running differs in each part of the UK. For example, rural areas may have higher maintenance costs compared to cities.
2. Energy Type
   • Electricity and gas have separate standing charges. Typically, electricity standing charges are slightly higher than those for gas.
3. Government Regulations
   • Regulatory bodies like Ofgem influence the energy market, setting caps or encouraging providers to maintain fair pricing.
4. Provider-Specific Policies
   • Some providers offer tariffs with no standing charges or reduced rates as part of special deals, often targeted at low-energy users.
5. Market Conditions
   • Changes in wholesale energy prices, infrastructure investments, and policy changes can impact standing charges over time.

Using our local search tool, you can find how your area fares in terms of standing charge, along with other energy-related stats for your local area.

Which region has the lowest standing charge?

As of January 1, 2025, Ofgem has set the energy price cap for the period ending March 31, 2025. The table below shows the daily standing charges for both electricity and gas across different regions in the UK:

As previously mentioned, the standing charges for electricity and gas vary by region. Electricity charges range from 41.57p/day in London (the lowest) to 72.09p/day in the Northern region (the highest). Gas charges are more consistent, ranging from 31.30p/day in Southern to 31.99p/day in London.

Regions like London benefit from lower electricity standing charges, possibly due to efficiencies in cities. Rural areas on the other hand, such as Northern Scotland and the Northern region, face higher electricity costs, likely due to the extra expense of maintaining infrastructure in less populated areas.

Is choosing an energy supplier with the lowest standing charge always the best choice?

Low standing charges might look like a great deal, but they’re not always the cheapest option for every household. It’s important to think about the following trade-offs:

Low standing charges vs. high unit rates
Some energy deals with low standing charges might have higher rates for each unit of energy you use. If your household uses a moderate or high amount of energy, this could end up costing more overall.

High standing charges for predictability
Plans with higher standing charges often have lower rates for energy usage. This can work well for households that use a lot of energy, as the lower unit cost helps bring down the total bill.

Low-energy users
If you use very little energy, such as in a second home or a holiday rental, choosing a plan with a low or no standing charge makes sense. These plans keep your fixed costs to a minimum when your usage is low.

Specialist tariffs
Some providers offer special plans designed for certain lifestyles, like time-of-use tariffs. These plans charge lower rates during off-peak hours, making them a good fit if you use most of your energy at quieter times of the day.

How to choose the right energy provider

Finding the best energy provider is about more than just looking at standing charges. Follow these steps to make a smart choice:

Evaluate total costs
Use online comparison tools to work out the total yearly cost of energy based on how much you use. Make sure you take into account both standing charges and unit rates.

Consider regional rates
Check how prices vary in your area. Energy companies often charge different rates depending on where you live.

Look for discounts and perks
Some providers give discounts if you pay by direct debit, choose paperless bills, or bundle electricity and gas into one plan.

Check customer reviews
Look up customer reviews and satisfaction ratings to see how reliable the provider is and what kind of service they offer.

Evaluate green energy options
If you’re interested in helping the environment, look for plans that use renewable energy sources like wind or solar power.

Understand tariff terms
Read the details of the plan carefully. Check for things like exit fees, fixed contract lengths, and any special terms or conditions.

Switching providers
Changing energy providers is simple and can save you money. Make sure there aren’t any hidden costs, and check that the switch won’t disrupt your energy supply.

Standing charges are a key part of your energy bill, as they make up the fixed costs you pay no matter how much energy you use. Companies like Octopus Energy, British Gas, and EDF Energy often offer competitive deals, but the best choice will depend on how much energy you use and where you live.

Low standing charges are great for people who use little energy, like in second homes or holiday rentals. But if your household uses a lot of energy, finding the right balance between standing charges and the price you pay per unit of energy is important.

To make the best decision, take time to look at the total costs of different tariffs, check how rates vary in your region, and consider options that support renewable energy.