If you’re reviewing your electricity or gas bill and wondering what the “standing charge” is all about, you’re not alone. Many UK businesses pay this fee without fully understanding what it covers—or how to reduce it.
In this guide from Scalex Technology, we break down what energy standing charges are, how they affect your business energy costs, and what you can do to manage them effectively.
What Are Energy Standing Charges?
A standing charge is a fixed daily fee that energy suppliers charge to keep your business connected to the electricity or gas network—regardless of how much energy you use.
You’ll see this on your bill as a separate line item, usually listed in pence per day (e.g., 45p/day), and it’s charged 365 days a year—even if your premises are closed.
⚡ Standing Charges Cover:
- Maintenance of the national grid infrastructure
- Meter reading and servicing
- Admin and billing costs for energy supply
- Network and distribution charges
Standing Charges vs. Unit Rates
| Component | What It Is | How It Works |
|---|---|---|
| Standing Charge | Daily fixed fee for access to the energy supply | Paid even if no energy is used |
| Unit Rate | Cost per kilowatt hour (kWh) of electricity or gas | Depends on how much you consume |
Both charges together make up your total bill, so understanding both components is essential when comparing tariffs.
Do All UK Energy Tariffs Include Standing Charges?
Most business and domestic tariffs do—but some “no standing charge” deals exist. These often come with higher unit rates, which may or may not be cost-effective depending on your usage pattern.
If your business uses little to no energy, a tariff without a standing charge could reduce your overheads. But for businesses with steady or high usage, a plan with a lower unit rate—even if it includes a standing charge—may be cheaper in the long run.
How Standing Charges Affect Your Business
🔍 Small Businesses & Vacant Premises
If you run a seasonal business or have an empty commercial property, standing charges can quickly add up—despite zero energy use.
🧾 High Energy Users
For high-usage businesses (e.g., manufacturing, data centres), the standing charge may be a smaller portion of your overall bill, but still worth reviewing during contract negotiations.
Can You Reduce Energy Standing Charges?
You typically can’t eliminate standing charges—but you can:
✔️ Switch to a Better Tariff
Compare suppliers and see if a no-standing-charge tariff or lower standing charge plan works better for your usage.
✔️ Negotiate in Bulk
Businesses with multiple sites may have leverage when negotiating group energy deals with reduced standing fees.
✔️ Use Smart Metering
Smart meters provide accurate usage data and help optimise tariff choices, especially for multi-site or intermittent-use businesses.
How Scalex Technology Helps UK Businesses Save
At Scalex Technology, we go beyond IT and infrastructure—we help UK businesses manage their energy data, uncover cost-saving opportunities, and implement smarter solutions.
From energy usage analysis to tariff comparisons and sustainability audits, we ensure you’re not overpaying—especially on avoidable standing charges.
📉 Want to Reduce Your Energy Costs?
Contact Scalex Technology today for an energy usage review and start cutting unnecessary costs from your bills.
