UTILITYPRICES INSIGHT
Energy standing charges in October to December 2026: how they affect bills
Standing charges apply even on days with no energy use. For October to December 2026, Ofgem’s London electricity cap benchmark includes 42.92p a day with 0% VAT.
Standing charges can add to a household energy bill even when no energy is used that day. For October to December 2026, Ofgem’s single-rate electricity price-cap benchmark for London is a standing charge of 42.92p a day, with 0% VAT, for the Direct Debit benchmark category labelled “Other Payment Method”. It is a fixed daily amount within the tariff, rather than a charge based on the number of kilowatt hours (kWh) used. The key point for households cutting consumption is that using fewer kWh reduces the unit-rate part of the cost, but the daily standing charge still applies on days with no energy use. [1][2]
Daily charges by region
The electricity standing-charge benchmark varies by region. In October to December 2026, for single-rate electricity and the Direct Debit benchmark category labelled “Other Payment Method”, it runs from 42.92p a day in London to 67.66p a day in Merseyside and Northern Wales; both figures have 0% VAT. For gas in the same period and payment-method benchmark, the regional daily standing charge ranges from 29.16p in Southern England to 30.20p in London, including 5% VAT. Electricity unit-rate benchmarks also vary: they range from 25.36p per kWh in the East Midlands to 27.86p per kWh in Merseyside and Northern Wales, with 0% VAT. Gas unit-rate benchmarks run from 7.82p per kWh in the East Midlands to 8.17p per kWh in Southern England, including 5% VAT. [1]
How the two charges work
A household tariff specifies two separate prices: a charge for each kWh used and a daily standing charge. Ofgem says the standing charge applies even on days when there is no energy use. This means the unit-rate element changes as consumption changes, while the daily charge depends on how many days it applies. The price cap limits eligible unit rates and standing charges, rather than putting a ceiling on the total amount a household spends. Higher consumption therefore increases the total through the kWh charge. Ofgem sets the cap level every three months. [2]
Why households see differences
The cap benchmark is regional, so the examples show why two households using the same amount of energy can face different cap-level unit rates or standing charges in different regions. Ofgem also says that payment method, fuel and meter type can affect these charges. The figures above are specifically for a single-rate electricity meter and the Direct Debit benchmark category which Ofgem’s methodology labels “Other Payment Method”. That label is separate from Standard Credit and Prepayment in the cap methodology. A household with both gas and electricity should look at each fuel’s rates separately, as the regional figures and VAT treatment shown in Ofgem’s cap tables differ between electricity and gas. [1][2]
What to check on your bill
Check the tariff’s unit rate in pence per kWh and its daily standing charge, then compare each with like for like: the same fuel, region, meter type, payment method and VAT basis. The standing charge is particularly useful to identify separately if your household has reduced its energy use, because it applies on days without use. If comparing a tariff with an Ofgem figure, treat the regional number as a price-cap benchmark, not an individual supplier quote. Ofgem says suppliers set their own tariff prices, although eligible standard variable tariffs are protected by the cap’s limits. [2]
Dates and coverage
These standing-charge and unit-rate figures are Ofgem-derived regional default-tariff price-cap benchmarks effective from 1 October to 31 December 2026, not market averages or a statement of what any individual household pays. The published regional figures used here cover the Direct Debit benchmark category labelled “Other Payment Method” and single-rate electricity. Electricity figures in the table have 0% VAT for this period; the gas figures quoted include 5% VAT. Ofgem says fixed tariffs, business contracts, heating oil and heat networks are outside this price-cap protection. Household bills can differ because the cap does not set a total bill and because rates can vary by the factors Ofgem identifies. [1][2]
Sources
- Ofgem regional household benchmarks and price-cap guide ↗
- Ofgem: how the price cap and standing charges work ↗
Written with AI assistance for UtilityPrices. Molly Ashworth is a UtilityPrices house pen name for our AI-assisted editorial desk, not a real person. Sources are listed above. How we use sources and AI →