Standing Charges on Your Business Energy Bills: What Are You Really Paying For?

If you have ever looked closely at your business energy bill, you will notice a line for the “standing charge.”

But what exactly is this fee, and why do you have to pay it even if your business uses little or no energy? 

Understanding standing charges is key to managing your business’s energy costs and making informed decisions when comparing tariffs. 

Follow our Understanding Your Energy Bills blog series to learn more. 

What Is a Standing Charge?

A standing charge is a fixed daily fee that you pay to your energy supplier, regardless of how much energy your business uses. This charge covers the cost of maintaining your connection to the energy network, including the upkeep of power lines, gas pipelines, meter readings and other administrative expenses.

How Much Are Standing Charges in 2025?

Standing charges vary depending on your business size, location and supplier.

As of 2025, typical daily standing charges for UK businesses are:

  • Micro business: 56.3p (electricity), 35.5p (gas)
  • Small business: 51.1p (electricity), 39.3p (gas)
  • Medium business: 122.5p (electricity), 64.3p (gas)
  • Large business: 187.1p (electricity), 57.2p (gas)

These charges can add hundreds of pounds to your annual bill, so it’s important to factor them in when comparing energy deals.

Why Do Businesses Pay Standing Charges?

Standing charges help suppliers cover essential costs, such as:

  • Maintaining and upgrading the national grid
  • Meter readings and maintenance
  • Admin and customer service
  • Ensuring your supply is available 24/7

Even if your business is closed or uses no energy, you will still pay the standing charge to remain connected.

Can You Avoid Standing Charges?

Some suppliers offer “no standing charge” tariffs, but these usually come with higher unit rates. For businesses with very low or irregular energy use, a no-standing-charge tariff might be cost-effective, but for most, the standard tariff is better value.

Understanding standing charges is crucial for controlling your business energy costs.

We suggest to always compare both unit rates and standing charges when choosing a supplier and consider your business’s usage patterns to find the best deal.

Think your business may have overpaid on energy bills?

A recent landmark court ruling means you could be entitled to reclaim thousands of pounds in hidden broker fees or mis-sold energy contracts.

Contact Business Energy Claims today to find out if you’re eligible.

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