--- title: "No standing charge energy tariffs: are they for you?" description: "No standing charge energy tariffs mean you only pay for the energy you use. Find out if they're right for you." url: "https://www.fuseenergy.com/blog/no-standing-charge-energy" updated: "2026-10-18" --- # No standing charge energy tariffs: are they for you? Energy bills in the UK typically include two main components: a unit rate charged per kilowatt-hour (kWh) for the energy you use, and a daily standing charge. While many households are keen to minimise fixed costs and only pay for their actual consumption, understanding whether a no standing charge energy tariff is truly beneficial requires a closer look at how these tariffs work and who they suit best. Managing your energy costs effectively means understanding all the components of your bill. Fuse Energy aims to provide clear pricing and tools to help you take control of your energy usage. Click [here](https://www.fuseenergy.com/app/boarding/premises) to switch to Fuse Energy today. ## Understanding energy standing charges ### What is a standing charge? A standing charge is a fixed daily fee that appears on your energy bill, regardless of how much gas or electricity you use. It is a flat rate applied every day, even on days when your energy consumption is zero. For Fuse Energy tariffs, all rates, including unit rates and standing charges, are quoted inclusive of 5% VAT. ### Why do we pay a standing charge? Standing charges cover the fixed costs associated with supplying energy to your property. These costs include the maintenance and upgrade of the energy network (pipes and wires), meter reading, and administrative expenses such as billing and customer service. Essentially, it is the cost of being connected to the energy grid, ensuring that power is always available at your property when you need it. Ofgem, the UK's energy regulator, sets a price cap that limits the maximum unit rates and standing charges suppliers can levy on standard variable tariffs. For the period 1 July to 30 September 2026, the electricity daily standing charge for Direct Debit customers is 57.19p, and the gas daily standing charge is 29.04p. ## What is a no standing charge energy tariff? ### How they work A no standing charge energy tariff eliminates the fixed daily fee. Instead, the costs typically covered by the standing charge are absorbed into a higher unit rate for electricity and/or gas. This means you only pay for the energy you consume, but each unit will be more expensive than on a tariff with a standing charge. ### Key differences from standard tariffs The primary difference lies in how the total cost is structured. With a standard tariff, you pay a fixed amount daily plus a unit rate for usage. With a no standing charge tariff, there is no fixed daily cost, but the unit rate is higher. For example, under the Ofgem Price Cap for 1 July to 30 September 2026, the electricity unit rate is 26.11p per kWh and the gas unit rate is 7.33p per kWh for Direct Debit customers. A no standing charge tariff would typically have unit rates significantly higher than these figures. ## Benefits and drawbacks of no standing charge tariffs ### Potential advantages The main benefit of a no standing charge tariff is that you only pay for the energy you actually use. This can be particularly appealing for households with very low or intermittent energy consumption. If you are away from home frequently, or if a property is often vacant, avoiding a daily fixed charge can seem attractive. Understanding your [energy consumption patterns](https://www.fuseenergy.com/blog/air-source-heat-pump-efficiency) can help you decide if a dual-rate tariff might be a better fit for your needs, especially if you can shift usage to off-peak hours. ### Considerations and disadvantages The trade-off for no standing charge is often a higher unit rate. This means that if your energy usage is moderate to high, a no standing charge tariff could end up being more expensive overall than a tariff with a standing charge and lower unit rates. It is crucial to compare the total estimated cost based on your actual energy consumption patterns. The average UK home uses around 2,500 kWh of electricity and 9,500 kWh of gas per year, according to Ofgem's typical domestic consumption values (TDCVs) effective from 1 July 2026. > **Are no standing charge tariffs always cheaper?** > > No standing charge tariffs are not always the cheapest option. While they eliminate the daily fixed fee, they typically come with higher unit rates for electricity and gas. For households with average or high energy consumption, a standard tariff with a standing charge and lower unit rates can often result in a lower overall bill. ## Who benefits most from no standing charge tariffs? ### Low energy users Households with very low energy consumption are the primary beneficiaries of no standing charge tariffs. This includes individuals or couples who are rarely home, those who are extremely energy-efficient, or properties that are only occupied for short periods. For these users, the higher unit rate might be offset by the absence of a daily fixed cost. For those looking to reduce their overall energy consumption, exploring options like an [air source heat pump running cost](https://www.fuseenergy.com/blog/air-source-heat-pump-running-cost) analysis could provide insights into long-term savings. ### Holiday homes and infrequent use Properties like holiday homes, second homes, or rental properties that are vacant for extended periods can also benefit. Since a standing charge applies every day regardless of usage, a no standing charge tariff ensures you are not paying for energy supply when the property is empty. ## Availability of no standing charge tariffs in the UK ### Current market landscape No standing charge tariffs are not widely available from a broad range of energy suppliers in the UK. Most suppliers offer tariffs that include both a unit rate and a standing charge, reflecting the fixed costs involved in maintaining the energy infrastructure. While some smaller or niche suppliers might offer such tariffs, they are not a common feature across the market. ### Finding available tariffs To find available no standing charge tariffs, you typically need to use energy comparison websites. These platforms allow you to input your estimated energy usage and compare different tariff structures, including those with no or low standing charges. However, always ensure you compare the total estimated annual cost, not just the unit rates, to determine the best value for your specific consumption. ## Fuse Energy's approach to your energy costs At Fuse Energy, our tariffs include a standing charge, as do most energy suppliers in the UK. This charge helps cover the essential fixed costs of maintaining a reliable energy supply to your home, ensuring the grid is always ready to deliver power. We believe in transparent pricing, helping our customers understand every component of their energy bill. While Fuse Energy tariffs include a standing charge, our mission is to deliver the cheapest, cleanest energy possible, making energy so abundant it stops being a thing you think about. We aim to provide holistic value and control over your energy consumption, rather than solely eliminating fixed charges. We offer transparent billing, 24/7 human customer support, and modern energy solutions designed to empower you to manage your energy effectively and reduce your overall energy costs. Our focus is on making energy affordable and accessible, giving you more power to play with. Find out more about our mission [here](https://www.fuseenergy.com/mission). Ready to take control of your energy? Click [here](https://www.fuseenergy.com/app/boarding/premises) to switch to Fuse Energy today. --- Rates, availability, and regional off-peak windows change. Check the source page for current terms. **Disclaimer** For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.