Why do standing charges vary by region?

Part of a standing charge is the cost of the local and national networks, and those costs differ by where you are. The supplier's own costs and the type of meter also play a part, so two neighbours can pay different amounts.

The regional pieces

• Distribution (DUoS). Great Britain's local wires are run by 14 regional distribution network operators, each with its own charges. See what a DNO is.
• Transmission (TNUoS). The national grid charge depends on your location (a TNUoS zone), your meter type and your capacity band, according to a MoneySuperMarket explainer dated 10 March 2026.
• Gas. Gas pipes are also run by regional network companies, so the transportation part of a gas price can differ by area too.

Our page on TNUoS and DUoS explains each charge.

Non-regional reasons for differences

• Meter type and capacity. Half-hourly sites and sites with larger agreed capacity are charged differently from small non-half-hourly ones. See supply capacity and kVA charges.
• Supplier and contract. Some suppliers recover more through the standing charge and less through the unit rate, or the other way round.
• Credit risk and contract length. These influence the supplier's margin.
• Pass-through or fixed. Pass-through contracts show network charges separately. Fixed contracts bundle them. See pass-through vs fixed charges.

Why this matters when you compare: a worked example

Two shops each use 12,000 kWh a year. Shop A has a quote of 27p/kWh with a 40p/day standing charge. Shop B is quoted 25p/kWh with 90p/day.

• Shop A: 12,000 × 0.27 = £3,240 plus 0.40 × 365 = £146, total £3,386
• Shop B: 12,000 × 0.25 = £3,000 plus 0.90 × 365 = £328.50, total £3,328.50

Shop B has the lower unit rate and a higher standing charge, and still ends up £57.50 cheaper. If shop B used only 6,000 kWh, it would pay £1,500 + £328.50 = £1,828.50 against £1,620 + £146 = £1,766 for A. The mix matters.

What you can do

1. Always compare total annual cost for your own usage and your own postcode.
2. Ask whether the standing charge in a quote includes network costs.
3. Check that the quote matches the profile or meter on your site.

Use the same postcode, meter number and annual usage for every quote so the regional element is identical.

Do I have any say in my area?

You cannot change which distribution area you are in, and you cannot choose your transmission zone. What you can influence is the contract structure, your agreed capacity and, if you are eligible, your meter type. Always give your full postcode when you request quotes, because a quote for the wrong area is not comparable.

Next steps

For the full picture of how the daily fee is built, see business energy standing charges.