What is the difference between standing charge and unit rate?
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In short: The standing charge is a fixed daily fee for being connected to gas or electricity; the unit rate is what you pay per kWh used. Ofgem caps both under the energy price cap — low users pay a higher share as standing charges.
Content updated:
Multiply standing charge by 365 and add (unit rate × annual kWh) for total bill. A high standing charge hurts second homes and low users.
Few tariffs eliminate standing charges; those that do often charge higher unit rates. Compare full annual cost, not just unit rate headlines.
See our standing charge guide and energy price cap answer.
Part of our Bills & utilities
This quick answer sits inside our wider bills & utilities hub — with sub-guides, calculators and step-by-step explainers on the same topic.
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