When reviewing your business energy bill, you may notice a fixed daily cost called a “standing charge.” But what exactly is it, and how much control do you really have over it?
At Scalex Technology, we believe in full energy transparency. In this guide, we explain what standing charges are, how they work in the UK energy market, and how your business can manage or reduce them.
What Is a Standing Charge?
A standing charge is a daily fixed fee applied to your gas and electricity bills, regardless of how much energy your business uses. It’s charged in pence per day (p/day) and added to your bill every day—even if no energy is consumed.
What Does It Cover?
- Maintenance of the energy network (pipes, cables, etc.)
- Meter reading and data processing
- Customer service and supplier admin
- Costs incurred by your energy supplier for keeping your connection live
How Are Standing Charges Set?
Standing charges vary depending on:
- Your energy supplier
- Your tariff type
- Your meter profile
- Your geographic location
In the UK business energy market, most contracts include a standing charge, although zero standing charge tariffs are available—but they often come with higher unit rates.
Average Standing Charges for UK Businesses (2024–2025)
| Energy Type | Typical Standing Charge (p/day) |
|---|---|
| Electricity | 25p to 100p |
| Gas | 20p to 80p |
🔎 Note: These are averages. Your business could pay more or less depending on your supplier and usage profile.
Why Do Standing Charges Matter?
🧾 Even Low Users Pay
Standing charges apply daily, even if your business is closed for holidays or weekends. This can make up a large portion of the bill for low-usage businesses.
📉 Impacts Cost Control
They can limit how much you save by reducing energy use if the fixed charge is significant.
⚖️ Affects Tariff Choice
Choosing the right balance between unit rate and standing charge is key for long-term savings.
Can You Avoid or Reduce Standing Charges?
While completely avoiding standing charges is rare, there are ways to reduce their impact:
✅ Compare Suppliers
Different energy suppliers offer different standing charges. A review can help find a better fit.
✅ Negotiate on Renewal
At contract renewal time, you can often negotiate lower standing charges—especially if you have strong usage data.
✅ Consider Zero Standing Charge Tariffs
Some suppliers offer no standing charge but increase the unit cost. This may benefit seasonal or low-usage businesses.
✅ Consolidate Supply
For multi-site businesses, consolidating energy contracts can lead to lower standing charges across the board.
How Scalex Technology Can Help
Our team specialises in optimising business energy contracts by reviewing both unit rates and standing charges.
We can help you:
✅ Compare standing charges across suppliers
✅ Understand how charges impact your bills
✅ Switch to a more cost-effective tariff
✅ Monitor usage to make informed decisions
✅ Reduce energy waste and improve efficiency
Real Case Study
A chain of retail shops in the Midlands was on a standard contract with high standing charges. After a review with Scalex Technology, they switched to a multi-site contract with a reduced average standing charge—saving over £1,200 annually.
Take Control of Your Business Energy Costs
Understanding your energy standing charges is the first step to smarter energy management. Whether you’re a small shop or a large enterprise, we’ll help you unlock the best value in the market.
📞 Contact Scalex Technology today for a free energy review
👉 Speak to our energy experts now
