Which Provider Offers the Lowest Standing Charge?

 Finding the provider with the lowest standing charge isn’t straightforward, because charges shift across regions, tariffs, and contract types. Still, some consistent trends stand out: challenger suppliers and online-only deals often advertise lower daily standing charges compared to legacy providers. Larger, well-known suppliers usually balance lower per-unit rates with higher fixed charges, while niche providers sometimes do the reverse.

What is a standing charge, and why does it matter?

A standing charge is the fixed daily fee energy companies add to your bill, regardless of how much electricity or gas you use. It covers costs like meter maintenance, network infrastructure, and government levies. For households using little energy (say, empty-nesters, single-person homes, or those with solar), standing charges often make up the bulk of the bill. That’s why a “cheap per unit” tariff isn’t always the cheapest overall.

Which energy providers have the lowest standing charges?

Providers update their tariffs frequently, but as of 2025 the landscape in Australia and the UK shows similar patterns:

Provider TypeTypical Standing Charge (Daily)Notes
Smaller challenger brandsLower than average (sometimes under 30–35 cents/day in Australia or ~20–25p/day in UK)Compete aggressively on fixed fees
Big 3/legacy suppliersModerate to high (40–60 cents/day AU; ~40–50p/day UK)Offset with cheaper per-unit rates
Online-only plansAmong the lowestRequire app or web self-management
Green/renewable specialistsMixed—some low, some higher to cover carbon programsWorth checking region-specific tariffs

Real-world example: In the UK, suppliers like Octopus Energy and EDF often compete with below-average standing charges. In Australia, Alinta Energy and Powershop have historically pushed lower fixed charges on selected plans, while AGL and Origin vary by region.

Does a lower standing charge always mean a cheaper bill?

Not necessarily. For high-usage households (families, home offices, or large properties), the per-unit rate (kWh cost) usually outweighs the standing charge. For low-usage homes (holiday lets, retirees, minimal consumption), a lower standing charge can save more across the year than a slightly higher unit rate.

A simple way to check: multiply the standing charge by 365, then compare with your annual consumption multiplied by the per-unit rate. That reveals whether you’re better off chasing a low standing charge or a low unit rate.

How can electricity brokers help you compare?

Sorting through tariffs is notoriously fiddly. Providers structure standing charges and usage rates differently depending on network zones. That’s where electricity brokers add value: they compare multiple offers, run the numbers against your actual usage, and highlight whether a low standing charge deal or a low unit rate deal best suits you. Brokers often have access to tariffs not publicly listed, especially for businesses.

FAQ

Why do standing charges vary by region?
They reflect local distribution costs, government levies, and network investments.

Can I get a zero standing charge plan?
Yes, but rare. Some niche or time-limited offers waive the standing charge, but they often offset it with higher per-unit rates.

What’s the best plan if I use hardly any energy?
Look for the lowest standing charge available—even if the unit rate is a little higher.

Standing charges are one of those overlooked parts of the bill that can quietly cost households hundreds a year. If your energy use is light, chasing the lowest standing charge could save more than switching for a lower unit price. And if you’re unsure, brokers can crunch the numbers for you—because in energy, the devil really is in the detail. For a deeper dive into how brokers fit into the supply chain, see electricity brokers.For an external comparison resource, you can also explore Ofgem’s official advice on standing charges.

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