Look at any business energy bill and you will find two numbers doing the work: the unit rate for the energy you use, and the standing charge — a fixed daily fee you pay whether you use a lot, a little, or nothing at all. It is the quiet part of the bill most owners never question, yet on a low-usage site it can be a surprisingly large share of what you pay. Here is what it actually is, why it varies so much, and how to keep it in check.
What a standing charge actually is
The standing charge is a fixed daily amount, shown in pence per day, that covers the cost of keeping your supply connected and running — regardless of how much energy flows through the meter. Broadly, it pays towards the network that delivers your gas and electricity (the pipes and wires), the operation of your meter, and a share of other fixed industry costs. You pay it every day of your contract, even on days you are closed.
Where it sits on your bill
Every business gas or electricity price has the same two parts:
- The unit rate (p/kWh) — charged on each unit you use.
- The standing charge (p/day) — a flat daily charge that applies no matter your usage.
Because the standing charge is fixed, it matters most to low-usage businesses: if you do not use much energy, the daily charge can make up a big chunk of the bill. For a high-usage site, it is a smaller slice of a bigger total. We break down the whole price in our guide on how much business energy costs.
Why business standing charges vary so much
Two businesses can have very different standing charges, for reasons largely outside their control:
- Location. The cost of running the local network varies by region, and that feeds into the charge.
- Meter type. Larger sites on half-hourly meters are charged differently from a small shop on a standard meter.
- Supplier and contract. Each supplier sets its own standing charges, and they change with the deal you sign and when you sign it.
- No price cap. Unlike households, business energy has no price cap, so there is no ceiling on a business standing charge. It is set entirely by your contract.
Can you avoid it?
Almost never. Nearly every business contract includes a standing charge. You may see the occasional "no standing charge" tariff, but these usually load a higher unit rate to make up for it — so they are not automatically cheaper, and can work out dearer if you use a reasonable amount of energy. The right question is not "how do I avoid it?" but "which combination of unit rate and standing charge is cheapest for my usage?"
Watch the out-of-contract trap: if a deal lapses and you roll onto deemed rates, both the unit rate and the standing charge are usually much higher. Knowing your renewal date is the simplest protection — see our renewal timing guide.
How to keep it in check
- Always compare both numbers together. A tempting low unit rate paired with a high standing charge may cost you more overall. Judge the two as a pair.
- Weight it to your usage. If you are a low-usage site, focus on the standing charge; if you are high-usage, the unit rate matters more.
- Review multi-site setups. Every meter carries its own standing charge, so businesses with several sites pay several daily charges — worth reviewing together.
- Do not drift out of contract. Renew in good time to avoid the higher deemed standing charges.
How Win Energy helps
Because the standing charge is set by your contract and never capped, the only way to know you are on a fair one is to compare. We compare business electricity and business gas across a panel of UK suppliers and look at the whole price — unit rate and standing charge together — sized to how your business actually uses energy.
Not sure if your standing charge is fair? Send us a recent bill and we will benchmark the full price across the market — free, with no obligation. Call 0845 862 1947 or get in touch.
The standing charge is not a con — it is a real cost of keeping you connected. But because it is fixed and uncapped, it is exactly the kind of number worth checking rather than accepting. Know what you are paying, compare it against the market, and it stays a fair charge rather than a lazy one.