No standing charge energy:
is it actually cheaper for you?
No standing charge tariffs trade a zero daily fee for a higher unit rate. Whether that saves you money depends entirely on how much energy you use. Here is how to work it out.
No standing charge tariffs remove the daily fixed fee (currently around 57p per day for electricity) and replace it with a higher unit rate, typically 35 to 40p per kWh versus the standard 24.67p. They are only cheaper if your annual electricity usage is under approximately 850 kWh per year. For most UK households using around 2,700 kWh per year, a standard tariff is cheaper.
Four major suppliers are trialling no standing charge tariffs in 2026
Following an Ofgem consultation that started in late 2024, four major suppliers — British Gas, EDF, E.ON and Octopus Energy — began a one-year pilot of low or no standing charge tariffs in April 2026. The pilot is limited in scale and not all households can sign up. Ofgem plans to review the pilot in 2027 before deciding whether to require all suppliers to offer a zero or low standing charge option. Contact your supplier to ask whether a no standing charge tariff is currently available for your home. Availability varies by region and meter type.
Source: Ofgem press release, September 2025. Last updated May 2026.
Is a no standing charge tariff cheaper for you?
Default rates based on Ofgem Q2 2026 price cap: standard electricity 24.67p/kWh, 57.21p/day standing charge. No standing charge unit rate of 37p/kWh is illustrative based on available market data as of May 2026. Actual no standing charge rates vary by supplier and region. Always verify with your supplier before switching. Last updated May 2026.
Who should and should not consider a no standing charge tariff
Good fit for no standing charge
Poor fit for no standing charge
The crossover point explained
The key number is the crossover point: the annual electricity usage at which both tariffs cost the same. Below that, the no standing charge tariff is cheaper. Above it, the standard tariff wins.
Using typical 2026 rates: a standard tariff at 24.67p/kWh with a 57.21p daily standing charge costs £209 per year in standing charges alone (365 x 57.21p). A no standing charge tariff at 37p/kWh costs 12.33p more per kWh in unit costs. Dividing £209 by £0.1233 gives a crossover of around 1,695 kWh per year. Use under that and the no standing charge tariff is cheaper. The crossover point changes with the unit rates on offer, so use the calculator above with your supplier's actual rates.
For context, Ofgem's typical annual electricity consumption for a medium household is 2,700 kWh, well above the crossover point on these rates. The no standing charge tariff is a niche product for very low-usage homes, not a mainstream option. If you are a typical household, comparing standard tariffs by postcode is a more effective route to savings.
Not on a no standing charge tariff? Compare standard deals
For most households, comparing standard and fixed tariffs by postcode will find bigger savings than a no standing charge tariff.
Questions people ask
A no standing charge tariff removes the daily fixed connection fee and instead charges a higher unit rate for the energy you use. You pay nothing on days you use no energy, but more per kWh on days you do. Whether it saves money depends on how much electricity you use annually.
Only for very low-usage households. With typical 2026 rates, the crossover point is around 850 to 1,700 kWh per year depending on the specific rates. Most UK households use around 2,700 kWh per year, well above the crossover. Use the calculator above with your supplier's actual rates to check.
Single people in small flats, households with solar panels covering most usage, holiday homes unoccupied for long periods, or properties with very low or occasional electricity use. They are not suitable for most typical UK households or anyone whose usage is growing.
As of April 2026, British Gas, EDF, E.ON and Octopus Energy are trialling low or no standing charge tariffs as part of a one-year Ofgem pilot. Availability is limited. Contact your supplier to ask whether an option is available for your home.
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Find the cheapest tariff for your household
For most homes, comparing standard and fixed deals by postcode finds bigger savings than a no standing charge tariff.
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