Should energy standing charges be scrapped, so bills are based only on usage?
UK households on default tariffs pay daily standing charges even with zero usage: from 1 October to 31 December 2026 these average 54.83p per day for electricity and 29.68p per day for gas, or about £308 a year for dual-fuel direct debit customers. These fixed charges cover network, operating and policy costs and form part of Ofgem's quarterly energy price cap, which also sets maximum unit rates. A pilot for lower-standing-charge tariffs began in 2026, but full abolition would require shifting all fixed costs onto unit rates.
34 Opinions
We no longer have utilities that are 100% British therefore no standing charge is applicable
What a fantastic idea. !!
A standing charge helps cover the cost of the infrastructure that we all share, a usage charge covers the cost of energy. The current system makes economic sense.
Nationalisation would be a much better way to maintain and upgrade the underlying infrastructure
This standing charge has forever been a bane on every users finances, it's time it was abolished
You can control costs through usage, but get massively clobbered by the standing charges, which are in essence taxes by another name.
Standing charges are representative of operating costs, so the cost will just be met by putting the KW/HR rate up, raising costs for high users
Yes because it would make bills simpler to understand, predict and therefore manage.
Energy companies used to bill quarterly now they bill monthly & pester all with their inflated readings & demands. They skew the market for their cash flow & the public pays for their inefficiencies. I had a dispute & discovered British Gas were trying to bill me £9K for an empty unit where they had read a water meter by mistake. Took 10 months to resolve. £50 compensation. Zero incentive for them. Abolish standing charges disconnect smart meters & bill quarterly.
This is kind of a "yes... but". Under normal circumstances, the costs of the infrastructure should come out of the profits of the supply. That said, there may be cases where a building needs an energy supply, but uses very little of it and therefore the infrastructure costs are disproportionate to the revenue. In those cases, a small standing charge may be appropriate.