What is The Current Standing Charge for Business Electricity?

By Olivia Johnson - Trusted UK Business Expert

Last Updated 10th of May 2025

4 minute read

If you are running a business, understanding your electricity costs is very important. We are here to make things simple for you. Our guide will explain everything you need to know about the Standing Charge for Business Electricity.

The current Standing Charge for Business Electricity is a fixed daily fee, typically between 20p and 100p per day, depending on your supplier, location, and meter type. It covers the cost of keeping your business connected to the energy network.

Stay with us. We will show you how the Standing Charge for Business Electricity works, what affects it, and how you might save money. Understanding it can really help your business costs.

Need to Know the Latest Rates? Click the link below to discover the current standing charge for business electricity.

What is The Current Standing Charge for Business Electricity?

The Standing Charge for Business Electricity is a daily cost that businesses must pay whether they use electricity or not. It covers the cost of supplying energy to your premises, maintaining the network, and providing customer service. It is a key part of your electricity bill.

It is important to know that this charge is separate from the unit rate, which is the price you pay for the electricity you actually use. The Standing Charge is about keeping your business connected and ready to use power whenever you need it.

In 2025, the average Standing Charge for Business Electricity can vary greatly. Small businesses might pay around 20p to 40p per day, while larger businesses might pay up to 100p or more. The exact amount depends on factors like your supplier, your meter type, and your location.

Understanding the Standing Charge for Business Electricity

What the Standing Charge Covers

The Standing Charge is not just a random fee. It pays for important things, such as:

• Maintaining the energy network: Wires, poles, and substations must be kept safe and working.
• Customer service: Staff who answer your questions and solve problems.
• Meter readings and maintenance: Making sure your usage is recorded correctly.
• Government schemes: Helping to support renewable energy and protect vulnerable customers.

Even if your business closes for a few days and uses no electricity, the Standing Charge still applies. It is about being connected, not about what you use.

How Much is the Standing Charge for Business Electricity?

Here is a table showing some example ranges:

Every supplier sets their own rates, and they change often. Always check your contract to know exactly what you are paying.

Why the Standing Charge Can Vary

Several things affect how much you pay:

• Supplier Policies: Different suppliers have different pricing models.
• Location: Rural areas often cost more to supply.
• Meter Type: Half-hourly meters and smart meters can have different charges.
• Usage Level: Some high-usage businesses get better deals.

Some suppliers even offer “no Standing Charge” plans, but the unit rates are usually higher to make up for it.

Fixed vs Variable Standing Charges

• Fixed Standing Charge: Same amount every day.
• Variable Standing Charge: Changes depending on time or usage.

Most businesses have a fixed Standing Charge, which makes budgeting easier.

How Does the Standing Charge Affect Your Total Bill?

The Standing Charge can have a big effect on small businesses. If you do not use much electricity, the Standing Charge might be most of your bill. For big users, it is a smaller part compared to their usage costs.

For example:

• Small café using 500 kWh per month:
  • Standing Charge: £10.50
  • Usage Charge: £40
  • Total: £50.50
• Large warehouse using 10,000 kWh per month:
  • Standing Charge: £30
  • Usage Charge: £800
  • Total: £830

As you can see, the Standing Charge matters more when usage is low.

Can You Get a Lower Standing Charge for Business Electricity?

Yes, you can. Here are some tips:

• Shop Around: Compare different suppliers. Rates can vary a lot.
• Negotiate: Talk to your supplier about getting a better deal.
• Smart Meter: Having a smart meter can sometimes lower your Standing Charge.
• Use Energy Brokers: They can find hidden deals.
• Check “No Standing Charge” Tariffs: But watch the unit price.

Saving even a few pence a day can add up over a year.

How to Compare Business Electricity Standing Charges

When looking for a good deal, ask these questions:

• What is the daily Standing Charge?
• What is the unit rate for electricity?
• Are there extra fees?
• Is the Standing Charge fixed for the contract length?

Always get quotes from at least three suppliers. Use a table to compare them side by side.

Should You Choose a Tariff with No Standing Charge?

Some businesses might find “no Standing Charge” tariffs better, but there are risks:

Pros:

• No daily fee.
• Good if you use very little electricity.

Cons:

• Higher unit rates.
• Might pay more if you use more power.

Think carefully before choosing.

Want to find the best Standing Charge for Business Electricity? Click the link below to get expert help and save your business money today.

FAQ

What does the Standing Charge pay for?

It pays for keeping you connected to the electricity network, maintenance, customer service, and government schemes.

Is the Standing Charge negotiable?

Sometimes, yes. Especially if you are a large user or use an energy broker.

Can I avoid paying a Standing Charge?

You can choose a “no Standing Charge” tariff, but you might pay more for each unit of electricity.

Does the Standing Charge change during my contract?

In fixed contracts, no. In variable contracts, it might.

How do I find the lowest Standing Charge?

Compare quotes from different suppliers and ask about special deals.