Our use of cookies 
Business electricity standing charges
Compare and save up to 45% on business electricity standing charges
Just enter your business postcode…
Start saving now
- Receive competitive quotes in minutes
- Compare trusted UK based suppliers
- Best fixed electricity rates from our experts
What is a business electricity standing charge?
A business electricity standing charge is a fixed daily cost you pay to stay connected to the electricity network, regardless of how much power your business uses.
Most business electricity tariffs include a standing charge, priced in pence per day, which covers the unavoidable costs of supplying power to your site via your regional electricity distribution network and the high-voltage national grid.
Suppliers also build in their own operating costs, such as metering, billing and customer service, along with a profit margin, which together make up the final standing charge you see on your bill.
Average business electricity standing charges
The table below shows average electricity standing charges for different types of commercial properties.
| Property Type | Standing Charge | Annual Cost | Explanation |
|---|---|---|---|
| Domestic property | 45–75p/day | £165–£270 | Regional cap applied under the energy price cap. |
| Small commercial property (under 20,000 kWh annual consumption) | 45–100p/day | £165–£365 | Incurs similar transmission costs to a domestic tariff, but distribution costs may be higher depending on region. |
| Medium commercial property (50,000 kWh annual consumption) | 75–130p/day | £275–£475 | TNUoS and DUoS charges rise with increased consumption. |
| Commercial property with a half-hourly meter (low voltage, 100 kVA) | £8–£20/day | £3,000–£7,300 | TNUoS charges are significantly higher for half-hourly (HH) meters, with substantial regional variation in distribution costs. |
Source: Published 2025/26 DUoS and TNUoS standing charges.
For a more accurate indication, our business electricity standing charge calculator provides an estimated minimum daily standing charge, based on the transmission and distribution costs associated with your connection type.
Our calculator uses the latest published transmission and distribution rates that energy suppliers must pay to supply a customer with an active business electricity connection. These charges depend on:
- Connection capacity – Transmission and distribution costs are charged in proportion to the strain each property places on the grid. Properties with a higher demand for electricity pay higher charges.
- Region – The electricity distribution network in Britain is divided into 14 regional distribution networks. Each has a different set of annual charges agreed with Ofgem.
💡 Our calculator only assesses the network costs your supplier will incur. Suppliers will typically add their own metering and operating costs, as well as a profit margin, to their standing charges. As a result, the output of the calculator should be considered a minimum daily business electricity standing charge.
Why businesses have to pay electricity standing charges
Businesses pay electricity standing charges because there are fixed costs involved in keeping every site connected to the power network, regardless of how much electricity they use. These charges help cover the cost of maintaining local distribution networks and national grid infrastructure.
Even if a business uses no energy on a given day, such as during periods of closure or when a business site is currently unoccupied, the cables, substations, metering equipment and grid services that support its connection still need to be maintained.
Business energy suppliers incur these fixed costs from grid operators based on the MPANs of their customers and generally pass them on as part of a daily standing charge within their tariffs.
💡 Getting a no-standing-charge business electricity tariff is possible, but your supplier will recover the unavoidable network costs through a significantly higher unit rate.
What’s included in a business electricity standing charge?
Business electricity standing charges encompass five different costs energy suppliers incur to supply commercial properties with electricity. We’ll explain each below.
Transmission Network Use of System (TNUoS)
All businesses pay fixed TNUoS charges for using the national grid to distribute electricity across Britain.
TNUoS fixed charges depend on the Maximum Import Capacity of a connection.
For example, a small commercial property pays 15p/day, whereas a half-hourly metered property with a standard 69 kVA connection pays 390p/day.
Distribution Use of System Charges (DUoS)
All businesses pay a fixed DUoS standing charge for the maintenance of their connection to their local electricity distribution network.
DUoS charges depend on the pricing set by your local distribution network operator and the import capacity of your business electricity connection.
For example, a microbusiness electricity customer in Yorkshire pays a DUoS charge of 16p/day, while a half-hourly metered property with a standard 69 kVA connection pays 126p/day.
Metering maintenance and communication
Fixed metering costs cover the installation, maintenance, and manual meter readings of a business electricity meter.
Modern smart business energy meters do not require manual meter readings but instead incur charges for the wireless communication of business energy consumption data.
💡Customers with half-hourly meters can opt for separate Meter Operator contracts instead of paying metering costs through the business electricity standing charge.
Supplier operating costs
Business energy suppliers incur fixed costs to manage their customers’ services and billing functions.
A supplier typically recovers the overheads associated with customer management through daily standing charges.
Supplier profit margin
Business electricity prices are uncapped, meaning most suppliers add a profit margin to the components of daily standing charges summarised above.
Use our business electricity comparison service to find the most competitive standing charges currently available.
Business electricity standing charges on different tariffs
The type of business energy contract your business chooses significantly impacts the daily business electricity standing charge you will incur.
Here’s a breakdown of the different tariff types:
| Tariff Type | Typical Standing Charge | Reason |
|---|---|---|
| Fixed Tariff | Depends on contract length | The supplier incorporates expected future annual rises in transmission and distribution costs. These are expected to increase significantly in the coming years to cover the cost of network upgrades required for the clean energy transition. |
| Variable Tariff | Low to Medium | The supplier can adjust for rises in distribution costs as and when they occur, meaning that the standing charge does not reflect any future rises in distribution and transmission costs. |
| Green Business Energy | Medium to High | The supplier may increase standing charges to cover the additional administration required for REGO certificate purchases. |
| Out-of-Contract Tariff | Very High | Suppliers typically incorporate a high margin into the standing charges of default tariffs, making them significantly more expensive than a fixed contract. |
How standing charges appear on a business electricity bill
Business electricity standing charges are typically presented on a business electricity bill in pence per day, and are then calculated as follows:
Standing charge = Days in billing period x Standing charge p/day
For businesses on more complex or pass-through contracts, the standing charge may be broken down into multiple components, such as metering costs or distribution network fixed charges.
In these cases, the total fixed daily cost is usually summarised so businesses can clearly see their overall standing charge obligation.
Strategies to reduce business electricity standing charges
Unlike unit rates for energy consumption, reducing business electricity standing charges can be challenging since they represent fixed costs for maintaining and delivering electricity to your property.
However, here we outline three different strategies for reducing business electricity standing charges.
Disconnect redundant connections
Off-grid energy solutions, such as commercial solar panels, solar batteries, and back-up generators, are increasingly popular, meaning businesses rely less on a connection to the local grid.
Consider whether your business could use these off-grid solutions to avoid paying a business electricity standing charge.
Switch to a more competitive tariff
Each business energy supplier adds a margin to the standing charges of their customer tariffs. Consider using a comparison service or a business energy broker to find a more competitive tariff.
It is straightforward to switch business energy suppliers and take advantage of a more competitive tariff.
Optimising your connection
Consider conducting a business energy audit to review and optimise your business electricity connections. Recommended changes could include:
- Reducing your Maximum Import Capacity.
- Consolidating multiple meters at the same site.
- Replacing a half-hourly meter with a smart meter.
Business electricity standing charges – FAQs
Our energy experts answer the most commonly asked questions about standing charges on business electricity tariffs.
Are there any no-standing-charge deals left for businesses?
Yes, some suppliers do offer no-standing-charge business energy contracts. One prominent example is Octopus Business Energy.
Under a no-standing-charge tariff, a supplier will charge a significantly higher business electricity price per kWh to cover the fixed network and transmission costs they incur.
How do standing charges differ for single-phase, three-phase and half-hourly meters?
Business electricity standing charges include fixed transmission and distribution charges that are directly affected by the type of grid connection at your commercial property.
Here is the impact of these three connection types:
- Single phase – Single-phase 230-volt connections typically have a low Maximum Import Capacity and therefore incur lower network costs
- Three phase – Three phase 400 volt connections typically have a higher import capacity and incur higher fixed network costs.
- Half-hourly – Properties with half-hourly electricity meters typically have an import capacity of 100 kVA or more and pay fixed network costs in the highest pricing bands.
Are business electricity standing charges rising?
Yes, the network costs that make up the majority of business electricity standing charges are expected to rise significantly over the next five years.
The National Grid in Britain is embarking on the Great Grid Upgrade, under which billions of pounds will be spent to integrate electricity from new UK wind farms.
These upgrades will be funded by electricity consumers in the form of rising transmission use of system costs.