Most people focus on the unit rate when they compare energy tariffs. The standing charge gets ignored. That is a mistake, because it can quietly add hundreds of pounds to your annual bill regardless of how much energy you actually use.

What is a standing charge?

A standing charge is a fixed daily fee you pay just to be connected to the electricity or gas network. It covers the cost of maintaining the pipes and cables that bring energy to your home.

It does not matter whether you use a lot of energy or a little. The standing charge gets added to your bill every single day.

How much does it cost?

Standing charges vary between suppliers and tariffs. For the April to June 2026 quarter, the Ofgem price cap average is 57.21p per day for electricity and 29.09p per day for gas.

That might not sound like much but add it up. At 57p a day for electricity alone, you are paying over £208 a year before you have used a single unit of power.

Why it matters when switching tariffs

A tariff with a low unit rate but a high standing charge can easily cost more overall than a tariff with a slightly higher unit rate and a lower daily charge. Comparison sites will usually calculate the combined annual cost for you if you enter your usage in kWh, which is the only fair way to compare.

Never choose a tariff based on the unit rate alone.

The Agile Octopus angle

One thing worth knowing if you are considering Agile Octopus is that the standing charge is separate from the variable unit rate. The unit rate changes every 30 minutes but the standing charge stays fixed. Currently Octopus charge around 72p per day for Agile, which is higher than the price cap average. It is worth factoring that in when comparing, though the savings you make during cheap and negative rate windows can far outweigh the standing charge over the course of a month.

What to do with this

Always look at both numbers when comparing tariffs: the unit rate and the standing charge. The total annual cost is what matters, not the headline rate. If you want to see how Agile Octopus stacks up against your current tariff, use my referral link and we both get £50 credit when you switch.