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Daily Standing Charge Explained: Standing Charges & No Standing Charges
Standing charges are a daily charge added to most business energy tariffs. Our guide explains what you need to know about standing charges and how you can find a tariff without them.
- Compare no standing charge business energy tariffs
- Select the best standing charge free deal for you
- Manage your switch online with Love Business
What Is a Standing Charge?
Standing charges are added to your gas and electricity bills as a fixed daily amount to cover the costs of maintaining the supply to your home or business premises, meter reading visits and any government support schemes.
In most energy contracts, your standing charge costs will be added to your bill even if you have used no gas or electricity on that day. As the fee isn’t linked to your energy usage, your standing charge costs will remain the same unless your supplier informs you of a price change.
How Do Standing Charges Work?
Standing charges are a fixed amount agreed upon in your contract and are charged daily. There’s a standing charge for each fuel. For example, if you have agreed to a business electricity contract with a daily standing charge of 67.3p this will add £245.64 to your annual bill (0.673 x 365 days).
What Is The Cost of Standing Charges in 2025?
Standing charge costs will vary significantly depending on your supplier and your tariff.
In 2025, business standing charges can cost between 30p and 160p per day. The average standing charge is approximately 59p per day in June 2025.
At 59p per day, standing charges would add around £217 to your yearly business gas or business electricity bill.
Domestic standing charges typically range from 5p to 60p per day for electricity and 10p to 80p per day for gas.
With standing charges often adding more than £100 to a gas or electricity bill, many customers are keen to switch to an energy tariff that eliminates these fees.
Cheapest Business Electricity Standing Charges in 2025
The cheapest standing charge is a tariff with zero standing charge, and the table below shows the ten cheapest standing charges for a business in London that uses 25,000 kWh of electricity a year. A cheaper standing charge does not necessarily mean a cheaper business energy bill, so ensure you compare quotes to find the best tariff for you.
| Smartest Energy Business | 0SC - 2 Year | 0p | £0 |
| Yü Energy | Fix Electricity 2 Year | 0p | £0 |
| Valda Energy | Valda Energy 3UR_3.12.24 Single Rate NSC | 0p | £0 |
| E.On Next | E-1R-NEXT_2YR_ FIXED_BUSINESS_BROKER |
30p | £109.50 |
| British Gas Lite | BGLite 2025 V140Love 12 | 3 | Single Rate SC DD Acquisition | 42p | £153.30 |
| British Gas | 12 | 3 | Single Rate SC DD Acquisition | 62p | £226.30 |
Prices for Love Business' panel of suppliers for contracts starting in October 2025 using 25,000 kWh of electricity annually. Business electricity prices change daily due to a fluctuating market and vary based on multiple factors including location and annual usage.
Cheapest Business Gas Standing Charges 2025
The cheapest business gas standing charge is currently 0p per day. The table below shows the tariffs with the cheapest standing charges for a business in London that uses 25,000 kWh of commercial gas a year.
| Yü Energy |
Fix Gas 2 Year |
0p | £0 |
| Valda Energy | Valda Energy NT - NSC | 0p | £0 |
| E.On Next | G-1R-NEXT_2YR_ FIXED_BUSINESS_BROKER |
0p | £0 |
| British Gas | London | B1A DSC DD Acquisition | 30p | £109.50 |
| EDF Energy | G-1R-EDF_FOL_06M_L_2YR_25-05-30_v1-C | 45p | £164.25 |
| Scottish Power | For Business vE6 ADV AF_G27G CED-31/07/2027 | 36p | £131.40 |
| British Gas Lite | BGLite V140Love London | G3 SC DD Acquisition | 55p | £201.95 |
Prices for Love Business' panel of suppliers for contracts starting in October 2025 using 25,000 kWh of gas annually. Business gas prices change daily due to a fluctuating market and vary based on multiple factors including location and annual usage.
Can I Switch To a No Standing Charge Tariff?
As of December 2024, some energy suppliers began offering zero-standing charge tariffs again, making it possible to switch to a tariff with no standing charge.
Tariffs with no standing charge allow you to avoid this daily fee by setting the cost of your standing charges to zero. The major benefit of a no-standing charge tariff is that you will only be required to pay for the energy you use.
However, you should bear in mind that your energy prices per kWh will often be higher with a no-standing charge tariff. Usually, a tariff with a standing charge will have a unit rate of 24p per day, we see that the unit rate for a no standing charge tariff is around 27p per kWh, based on London prices.
If you’re looking for great deals on your bills, you should compare energy prices. Switching to a no-standing charge tariff is the same as any other tariff.
How Do I Pay My Standing Charge?
Your daily standing charge is applied to your monthly or quarterly bill. No matter how much gas and electricity you use, you will always be charged a daily standing charge.
Is A No-Standing Charge Tariff Right For Me?
As with any tariff option, there are benefits and drawbacks to switching to a no-standing charge tariff.
Some of the key benefits are:
- You will have no daily charges – you only pay for the energy you use
- You can often reduce your unit rates once you use a certain amount of energy
- Your energy bills will be easier to calculate
The downsides are:
- You will often be charged a higher unit rate to compensate for the zero-standing charge
- Your bills may increase if you regularly have high energy usage
Opting for a tariff without a standing charge is only cost-effective in some situations. For example, a business that is only open seasonally or at weekends could make real savings by switching to a no-standing charge tariff. When the business is closed, energy bills will remain as low as possible.
For home energy customers, those who are away more often than not will likely see savings by choosing a no-standing charge tariff.
However, if you’re a frequent high-energy user, it’s likely your bills will increase if you choose this type of tariff with typically higher unit rates.
How To Switch To A No Standing Charge Tariff
The most important piece of advice when you compare standing charge tariffs is to take the full cost of your energy bills into account. No matter which tariff type you choose, it’s vital to view your full estimated yearly rates.
When you compare business or home energy tariffs with Power Compare, you can view the full cost of your gas and electricity based on your estimated energy usage.
With our comparison service, you can compare no standing charge tariffs from a wide range of trusted energy suppliers and receive advice on the right tariff for you from our team of expert advisers.