Which company has the cheapest standing charge for electricity?

 Finding the cheapest standing charge for electricity isn’t as straightforward as pointing to a single company. Energy retailers in Australia set standing charges differently depending on the state, the distributor, and whether the customer is residential or business. That said, standing charges (also called supply charges) are typically the fixed daily fees you pay just to be connected to the grid, regardless of how much power you use.

Below, I’ll break down how standing charges compare, why the cheapest option may not always be the best, and where brokers can help consumers navigate these costs.

What is a standing charge on electricity bills?

A standing charge is a daily fee (often between 90 cents and $1.50 per day) that covers the cost of maintaining the poles, wires, and infrastructure needed to keep you connected. Unlike usage charges, which vary depending on how many kilowatt-hours (kWh) you consume, this charge applies even if you use zero electricity on a given day.

It’s one of the biggest frustrations for low-usage households and small businesses: you can cut your consumption to the bone, but that daily charge still ticks over.

Which companies have the lowest standing charges?

Standing charges vary widely depending on state and distributor. For example:

State / NetworkCheapest Standing Charge (Approx.)Notes
NSW (Ausgrid / Endeavour)~$0.90 per daySeveral retailers offer below $1.00/day plans
VIC (CitiPower / Powercor)~$1.10 per dayUrban distributors often cheaper than regional
QLD (Energex)~$1.00 per dayRegional Ergon Energy areas are higher
SA (SA Power Networks)~$1.20–$1.30 per dayLimited retailer competition
WA (Synergy)Fixed ~$1.08 per dayState-owned monopoly, no choice of retailer
TAS (Aurora Energy)Fixed ~$1.03 per dayState-owned, limited competition

The “cheapest” provider can shift month to month as retailers adjust offers. In 2025, smaller challenger retailers often advertise standing charges slightly lower than the big three (Origin, AGL, EnergyAustralia), but usage rates may be higher to offset the saving.

Is a low standing charge always better?

Not necessarily. Here’s why:

  • Low users benefit more – Pensioners, small apartments, or holiday homes usually prefer low standing charges, even if usage rates are higher.

  • High users benefit less – Families or businesses using lots of electricity may be better off with a higher daily charge but lower usage rates.

  • Promotional offers distort comparisons – Discounts, bill credits, and bundled gas/electricity deals can make headline standing charges misleading.

Think of it like mobile phone plans: the cheapest access fee isn’t always the best if call rates are sky-high.

How can electricity brokers help?

For households and especially businesses, comparing standing charges across dozens of retailers can be time-consuming. This is where electricity brokers come in. They analyse both standing and usage charges across multiple providers, factoring in load profiles, time-of-use patterns, and contract terms. For businesses, brokers can also negotiate bespoke rates that aren’t even advertised to the public.

FAQs

What’s the average standing charge in Australia?
Around $1.00 to $1.20 per day for most metro areas in 2025.

Do all electricity plans include a standing charge?
Yes – almost all residential and business plans include a daily supply charge, though the rate differs by retailer and state.

Can I avoid standing charges?
Not if you’re grid-connected. The only way to eliminate them is by going fully off-grid with solar and batteries, but that comes with its own costs.

Final thoughts

The company with the cheapest standing charge will depend on your state, distributor, and usage profile. A retailer offering $0.90 a day in Sydney may not be the best option in Melbourne or Adelaide. More importantly, chasing the lowest standing charge alone can backfire if usage rates are inflated. For anyone serious about trimming costs – particularly businesses with complex energy needs – working with electricity brokers can uncover deals that balance both standing and usage charges.

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