Standing charge

What it is

A standing charge is a fixed amount, charged per day, that covers the cost of keeping your premises connected: network costs, metering and parts of the supplier's own running costs. It is separate from the unit rate, which is charged for each kWh you use.

Where you will see it

It appears on your bill as pence per day (p/day) multiplied by the days in the billing period, and it is listed in the Principal Terms of your contract. Quotes also show it, so always compare it alongside the unit rate.

Why it matters

Because it applies every day, you pay it even when the shop is shut. For a low-use premises it can be a large part of the bill. Standing charges vary a lot by size and region; our guide on business standing charges goes further, and some deals are marketed as no standing charge, usually with a higher unit rate instead.

Worked example

Moneysupermarket Business listed an average fixed microbusiness electricity standing charge of 58.0p/day in October 2026 (indicative only). Over a year:

• 58.0p × 365 days = £211.70
• Out-of-contract average listed there: 254.0p/day × 365 = £927.10

That is £715.40 a year more in standing charges alone for the same meter, before any difference in unit rates.

These are published averages, not quotes. Your own figure depends on supplier, region, meter type and contract.

Related terms

See unit rate, kWh and paying standing charges when closed.