Answers · UK 2025/26
What is the difference between the standing charge and the unit rate on my energy bill?
The standing charge is a fixed daily fee you pay just to be connected, regardless of usage. The unit rate is the price per kWh of gas or electricity you actually use. Both are capped per unit by Ofgem, not your total bill, so a higher standing charge raises your bill even if you use little energy.
Full answer
Ofgem's energy price cap limits the maximum per-unit rate and the maximum daily standing charge for customers on a standard variable tariff, not your overall bill. The standing charge is a fixed amount per day for each fuel that covers network and metering costs, the cost of supplier failures, and policy levies. You pay it even if you use no energy. The unit rate is the price for each kilowatt-hour (kWh) you consume. Worked example: suppose electricity has a standing charge of about 53p a day and a unit rate of about 27p per kWh, while gas has roughly 32p a day and 6.5p per kWh (illustrative figures; the cap changes quarterly). A household using 2,700 kWh of electricity and 11,500 kWh of gas a year would pay: electricity standing charge 365 x GBP 0.53 = GBP 193.45 plus 2,700 x GBP 0.27 = GBP 729, and gas standing charge 365 x GBP 0.32 = GBP 116.80 plus 11,500 x GBP 0.065 = GBP 747.50. That is about GBP 1,786 a year before any discounts. Because the standing charge is fixed, low users feel it most: someone using almost no energy still pays roughly GBP 310 a year just in standing charges. Standing charges vary by region and meter type. Fixed tariffs can offer lower or different standing charges than the capped variable rate. Use the budget planner to spread costs evenly. Check current cap levels and your tariff at gov.uk and ofgem.gov.uk.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.