Energy Standing Charges UK — Oct 2026 Explained

Standing charges October 2026 — why electricity fell and gas rose

Written by: EnergySwitch editorial team · Figures checked: 28 September 2026

Direct answer: From 1 October to 31 December 2026, the average Direct Debit electricity standing charge under the Ofgem price cap falls from 57.19p to 54.83p a day, while the average gas standing charge rises from 29.04p to 29.68p a day (GB averages for default tariffs). The electricity drop is largely the temporary 0% VAT on domestic electricity from 1 October 2026 to 31 March 2027 — not a cut in network costs. Gas keeps 5% VAT, so its daily charge edges up. Your exact charge depends on region, payment method and meter type.

This guide explains the opposite moves, low-user impact, regional spread and VAT distortion on period comparisons. Full unit-rate tables live on our full energy price cap tables — this page extends that overview rather than repeating it.

What is a standing charge?

A standing charge is the fixed daily fee for keeping you connected. You pay it whether you use a lot of energy or almost none. Under the price cap it sits alongside the unit rate (pence per kWh). On default tariffs it reflects network costs, metering, supplier operating costs and other allowances in the cap — not a discretionary fee you can simply ask to remove.

October 2026 averages at a glance

Ofgem announced the 1 October – 31 December 2026 cap on 26 August 2026. National averages for Direct Debit customers on a default tariff (England, Scotland and Wales):

Average unit rates for context:

Illustrative annual standing totals at those GB averages (pence × 365, rounded): electricity about £209 → £200; gas about £106 → £108; dual-fuel standing about £315 → £308. Those assume quarterly rates run for a year — the same presentational approach Ofgem uses for typical bills. Your bill will differ.

Typical dual-fuel cap level (Ofgem, 2026 TDCV medium use, Direct Debit): £1,663 a year for Jul–Sep → £1,723 for Oct–Dec (+£60 / +4%). Standing charges are only part of that move; higher gas unit rates drive most of the dual-fuel rise.

Looking ahead, January–March 2027 capped rates are still pending from Ofgem (due by 25 November). Cornwall Insight’s ~£1,999 scenario is a forecast only — see January 2027 energy price cap forecast vs Ofgem.

Why electricity standing charges fell

Two things happen at once in the October figures:

1. Underlying costs rose. Ofgem’s summary points to an 11% rise in the wholesale cost allowance versus the previous quarter, with geopolitical pressure on gas markets and knock-on effects for power.
2. VAT on domestic electricity in Great Britain is temporarily removed from 1 October 2026 to 31 March 2027. Ofgem’s Oct–Dec electricity averages therefore exclude VAT; Jul–Sep averages included 5%.

That tax change is why the published electricity standing charge can fall even while underlying costs rise. Ofgem is explicit: costs cannot be compared directly to previous periods.

Ofgem’s press summary also says that without the VAT intervention the typical dual-fuel October figure would have been around £45 higher, and that electricity-only / no-gas households see a much smaller typical increase (less than 1%) than dual-fuel homes. For who qualifies, PPM, fixed deals and Northern Ireland, see VAT off electricity October 2026.

VAT-ex illustration (editorial, not an Ofgem headline): Jul–Sep’s 57.19p includes 5% VAT. Stripping VAT for a like-for-like sketch gives about 54.47p. October’s published 54.83p (already VAT-free) sits slightly above that sketch — consistent with “underlying up, published down because of VAT.” Prefer Ofgem’s own “do not compare directly” warning on the bill.

Why gas standing charges rose

Gas still carries 5% VAT. Wholesale gas costs are the main story in Ofgem’s October update: the press release frames dual-fuel gas bills as rising by about 8%, with most of the overall dual-fuel cap rise driven by gas. The average Direct Debit gas standing charge therefore moves up from 29.04p to 29.68p a day.

So a dual-fuel home can see a lower electricity daily charge and a higher gas daily charge, while the typical combined capped level still rises because gas unit rates jumped further (7.33p → 7.97p/kWh).

Regional variation

Standing charges differ by distribution region. Ofgem cites local population, average use, how much suppliers need to buy, and network build/improvement costs.

From Ofgem’s published Direct Debit regional tables for 1 October – 31 December 2026 (single-rate electricity), the electricity standing charge ranges from about 42.92p a day in London to about 67.66p a day in Merseyside and Northern Wales. Gas varies much less — roughly 29.16p (Southern England) to 30.20p (London).

That electricity spread is large — well over £240 a year at the top versus about £157 at the bottom, before using a unit. Check your region on Ofgem’s tables or our energy price cap page.

Low users feel standing charges more

The standing charge does not shrink when you use less, so it takes a larger share of a small bill. At October GB averages (54.83p + 29.68p = 84.51p/day ≈ £308 a year of dual-fuel standing before units):

• Very low use (small flat, second home): standing can dominate the bill.
• Medium use (Ofgem 2026 TDCV: 2,500 kWh elec / 9,500 kWh gas): standing is a minority of the £1,723 typical dual-fuel figure.
• High use: unit rates dominate as a percentage.

Practical takeaways: do not treat £1,723 as your bill if you use far less; unit rates alone can mislead low users; lower-standing-charge tariffs (higher unit rates) can suit empty second homes but rarely typical homes — compare total cost for your kWh. Electricity-only homes benefit more from the VAT cut.

TDCV context

Ofgem’s annual-looking figures use Typical Domestic Consumption Values. In July 2026 it updated TDCV to reflect lower average use — about 7% less electricity and 17% less gas than the previous review. Medium dual-fuel TDCV for the October presentation: 2,500 kWh electricity and 9,500 kWh gas (Economy 7 / multi-register uses 3,400 kWh in Ofgem’s summary). New to two-rate meters? See Economy 7 explained.

Under the updated TDCV the October typical Direct Debit dual-fuel level is £1,723 (from £1,663). Against the old (2023) TDCV, the same rates would have presented as about £1,935 (from about £1,862). TDCV is mainly presentational, but it also affects how some costs are recovered through unit rates. The cap limits rates, not your total bill — compare for your usage and region.

Payment method still matters for the overall typical bill — October’s default-tariff PPM track sits about £45 below Direct Debit at medium TDCV. Detail: prepayment vs Direct Debit under the October 2026 price cap.

VAT distortion on period comparisons

So the published electricity standing charge falls, gas standing rises on a like-for-like VAT basis, and the dual-fuel typical level is still up 4% / £60 at medium TDCV — mainly from gas. Our VAT off electricity guide covers eligibility; this page focuses on the daily charge line.

What to do next

1. Check your own electricity and gas standing charges on a recent bill — note your region.
2. Do not assume the GB averages (54.83p / 29.68p) are what you pay.
3. Low users: weigh total tariff cost carefully; standing charges matter more for you.
4. If you may switch or fix, use compare energy deals with your postcode and usage, plus cheapest energy deals by total cost and how to switch.
5. Fix vs SVT for winter: see should I fix my energy deal before winter 2026?. Ofgem has noted fixed tariffs available at £100 or more below the October capped typical level — verify live quotes.
6. If you cannot pay, contact your supplier early; they must help if you ask.

Ofgem is also piloting lower standing charge tariffs with some suppliers, which cut the daily charge but come with higher unit rates: see our guide to Ofgem’s lower standing charge tariff pilot.

What are energy standing charges in the UK from October 2026?

For default Direct Debit tariffs, Ofgem’s GB average standing charges from 1 October to 31 December 2026 are 54.83p a day for electricity (no VAT) and 29.68p a day for gas (includes 5% VAT). Regional rates differ.

Why did the electricity standing charge fall in October 2026?

Mainly because VAT on domestic electricity in Great Britain is temporarily zero-rated from 1 October 2026 to 31 March 2027. Ofgem’s October electricity averages exclude that VAT; July–September averages included 5%. Underlying costs still rose, so Ofgem warns against direct period-to-period comparisons.

Why did the gas standing charge rise?

Gas still includes 5% VAT, and wholesale gas costs fed through into the October cap. The GB Direct Debit average rose from 29.04p to 29.68p a day, while the gas unit rate rose more sharply (7.33p to 7.97p/kWh).

Do standing charges vary by region?

Yes. For October–December 2026 Direct Debit single-rate electricity, Ofgem’s regional tables run from about 42.92p a day in London to about 67.66p in Merseyside and Northern Wales. Gas varies far less (about 29.16p to 30.20p).

How do standing charges affect low energy users?

Low users pay the daily charge regardless of use, so standing takes a larger share of a small bill. Compare whole-tariff cost for your kWh. Lower-standing-charge tariffs (with higher unit rates) can help very low use but are often a poor fit for typical households.

Is the £1,723 price cap my maximum bill?

No. It is an illustrative annual total for a typical dual-fuel Direct Debit household at Ofgem’s 2026 medium TDCV (2,500 kWh electricity / 9,500 kWh gas). The cap limits unit rates and standing charges on default tariffs — use more and you pay more.

Can I get a tariff with no standing charge?

It’s possible but rare. Ofgem decided not to make every supplier offer a lower standing charge tariff. Instead it is running a one-year pilot from June 2026, in which EDF, E.ON, Octopus and British Gas offer lower standing charge tariffs to eligible customers. A few specialist suppliers offer low or no standing charge tariffs on prepayment meters. A lower standing charge usually comes with a higher unit rate, so it tends to suit low users. Compare the total cost for your own usage.

Sources (primary)

• Ofgem press release: Energy price cap will rise by 4% from October 2026 (26 August 2026)
• Ofgem: Changes to energy price cap between 1 October and 31 December 2026
• Ofgem: Energy price cap unit rates and standing charges
• Ofgem summary PDF: Summary of changes to energy price cap 1 October to 31 December 2026

Cross-checked against EnergySwitch energy price cap hub and VAT off electricity so this guide extends those pages rather than duplicating full rate tables.

Figures checked against the primary sources above on 28 September 2026. Written for Great Britain (England, Scotland and Wales) default-tariff context unless stated. Your bill depends on usage, region, meter and payment method. Always verify live tariffs before switching.