No Standing Charge Business Energy Tariffs Explained
Most UK business energy contracts include a standing charge. At present, there are no true no-standing charge tariffs available for electricity or gas.
Our guide at a glance:
✔ Learn what a no-standing charge actually means.
✔ Find out what the current business energy standing charges are.
✔ See how you could benefit from choosing a no standing charge tariff.
What Is A Standing Charge?
A standing charge is a fixed daily fee that your energy supplier adds to your bill. It is separate from your actual energy usage and helps cover essential costs such as:
- Keeping your premises connected to the gas and electricity networks
- Maintaining and reading your meters
- Funding government energy schemes
Even if you don’t use any energy on a given day, you’ll still pay this charge.
If you’re on a dual fuel contract, you’ll see both a business gas standing charge and a business electricity standing charge listed on your bill.
Most suppliers display standing charges in pence per day, but some may show them as pounds per month or quarter.
How Much Do Standing Charges Cost in 2025?
In 2025, business standing charges vary significantly between suppliers and contract lengths. For most small and medium-sized businesses:
- Business electricity standing charges typically range from 40p to 90p per day
- Business gas standing charges usually range from 18p to 61p per day
Although these charges may seem small, they add up. For example, a 60p daily electricity standing charge costs around £219 per year before you’ve used any energy.
Current Supplier Examples (1-year fixed contracts, 2025):
- British Gas Lite - 40p daily electricity standing charge, 46.3p daily gas standing charge
- Scottish Power - 90.3p electricity, 30.8p gas
- EDF - 50p electricity, 45p gas
- Yu Energy - 71.5p electricity, 17.6p gas
- Smartest Energy - 53p electricity, 61.3p gas
As you can see, standing charges vary widely across suppliers. Some offer lower electricity fees but higher gas fees (or vice versa). That’s why it’s important to look at both the standing charge and the unit rate per kWh when comparing tariffs; the cheapest standing charge doesn’t always mean the lowest overall bill.
Business Electricity Standing Charges for 2025*
Understanding how much you’ll pay in standing charges and unit rates is essential when choosing a business electricity tariff. Even small differences in daily fees can add up over the course of a year, especially for businesses with high energy usage.
The table below displays the current 1-year business electricity standing charges and unit rates, based on an annual usage of 20,000 kWh, allowing you to estimate the total annual cost for each supplier. Use this as a guide when comparing tariffs and planning your energy budget.
*Last updated September 2025
| British Gas Lite |
40 |
26.5 |
20,000 |
146 |
5,300 |
5,446 |
1 Year |
| Scottish Power |
90.3 |
24 |
20,000 |
330 |
4,800 |
5,130 |
1 Year |
| Valda |
69.8 |
25.8 |
20,000 |
255 |
5,160 |
5,415 |
1 Year |
| British Gas |
60 |
26.1 |
20,000 |
219 |
5,220 |
5,439 |
1 Year |
| EDF |
50 |
25.8 |
20,000 |
183 |
5,160 |
5,343 |
1 Year |
| Smartest Energy |
53 |
25 |
20,000 |
193 |
5,000 |
5,193 |
1 Year |
| Yu Energy |
71.5 |
24.9 |
20,000 |
261 |
4,980 |
5,242 |
1 Year |
Business Gas Standing Charges for 2025*
Business gas standing charges and unit rates can vary significantly between suppliers. Even if your usage is consistent, a higher daily fee can make a noticeable difference to your annual costs.
The table below displays the current 1-year business gas standing charges and unit rates, based on an annual usage of 20,000 kWh, allowing you to estimate the total yearly cost for each supplier. This helps you make informed decisions when comparing tariffs and managing your energy budget.
*Last updated September 2025
| British Gas Lite |
46.3 |
6.9 |
20,000 |
169 |
1,380 |
1,549 |
1 Year |
| Scottish Power |
30.8 |
7.1 |
20,000 |
112 |
1,420 |
1,532 |
1 Year |
| Valda |
20.5 |
7.6 |
20,000 |
75 |
1,520 |
1,595 |
1 Year |
| British Gas |
48.2 |
7.2 |
20,000 |
176 |
1,440 |
1,616 |
1 Year |
| EDF |
45 |
7 |
20,000 |
164 |
1,400 |
1,564 |
1 Year |
| Smartest Energy |
61.3 |
5.9 |
20,000 |
224 |
1,180 |
1,404 |
1 Year |
| Yu Energy |
17.6 |
7.3 |
20,000 |
64 |
1,460 |
1,524 |
1 Year |
What Is A No Standing Charge Tariff?
A no-standing charge tariff sets your daily standing charge to zero, meaning you only pay for the energy your business actually uses.
These tariffs are sometimes also called unit-only tariffs, and while the unit rate (p/kWh) is usually higher than on standard contracts, they can help reduce your total energy bill if your usage is low or variable.
Key points to consider:
- Business electricity no standing charge tariff - Pay only for the electricity you use; no daily fixed fee.
- Business gas no standing charge tariff - Pay only for the gas you use; no daily fixed fee.
- Potential savings - If your business uses energy inconsistently or has periods of very low consumption, a no-standing charge tariff could reduce annual costs.
- Check unit rates carefully - A higher per-kWh cost could outweigh the benefit of zero standing charges, so always compare both the standing charge and unit rate.
Pros And Cons Of A No Standing Charge Tariff
Switching to a no-standing charge tariff can have advantages and disadvantages depending on how your business uses energy.
Pros:
- You only pay for the energy you use, with no daily standing charges.
- Energy bills are easier to predict and calculate for low-usage periods.
- Ideal for businesses with irregular or seasonal energy usage.
Cons:
- The unit rate (p/kWh) is generally higher than standard tariffs with a standing charge.
- Businesses with consistently high energy usage could end up paying more overall.
- Not widely available on the UK market for business electricity or gas, so options may be limited.
Should Your Business Switch to a No Standing Charge Tariff?
A no-standing charge tariff can be a good option for businesses with seasonal or infrequent operations, as you won’t pay daily standing charges when energy usage is low.
When it could help:
- Businesses that operate only on weekends, evenings, or certain months of the year.
- Companies with periods of low or unpredictable energy usage.
- Organisations looking to simplify energy costs during low-usage periods.
When it may not be suitable:
- Businesses with consistently high energy consumption, as the higher unit rate could result in larger bills than a standard tariff.
- Companies needing a predictable, fixed cost per day, which standard standing charge tariffs provide.
Ultimately, whether a business electricity no standing charge tariff or a business gas no standing charge tariff is right for your business depends on your energy usage patterns. Comparing tariffs and calculating annual costs can help ensure you choose the most cost-effective option.
How to Switch to a No Standing Charge Tariff
Switching to a no-standing charge tariff is similar to changing to any other business energy contract. Most major suppliers and many independent providers now offer no-standing charge options for both electricity and gas.
Key steps to switching:
- Compare full costs - Look at both the unit rate and standing charges to understand the total annual cost.
- Estimate your usage - Use your historical energy consumption to see how a no-standing charge tariff could affect your bills.
- Use a trusted comparison service - With BusinessEnergy.com, you can compare business electricity and gas no-standing charge tariffs from a wide range of suppliers.
- Get expert advice - Our team can help you choose the right tariff for your business, ensuring you’re paying the most cost-effective rates.
To see how much your business could save, compare the latest business energy prices with the experts at BusinessEnergy.com and find the tariff that works best for your energy usage.