Can I Refuse to Pay Energy Standing Charges? (UK)

Electric meter representing energy standing charge disputes

Standing charges have become one of the most controversial parts of energy bills. You pay them every day whether you use energy or not—and they’ve risen sharply in recent years. Many people wonder: can you legally refuse to pay them? Can you sue over them? This guide explains what standing charges are, why they’re rising, and what you can actually do about them.

This article is for informational purposes only and does not constitute legal advice.

The Short Answer

No, you cannot legally refuse to pay standing charges. They’re part of your supply contract, and refusing to pay will result in debt, credit damage, and potential disconnection. However, you can complain if charges seem unfair, and there are limited alternatives for some customers.

What Are Standing Charges?

Standing charges are fixed daily amounts you pay regardless of how much energy you use. They cover:

  • Maintaining the network – Pipes, wires, substations
  • Meter costs – Reading, maintenance, smart meter infrastructure
  • Government schemes – Energy efficiency programs, support for vulnerable customers
  • Supplier costs – Billing systems, customer service

Current Standing Charges (January 2026)

Under the Ofgem Price Cap:

  • Electricity: 54.75p per day (up 2%)
  • Gas: 35.09p per day (up 3.1%)

That’s approximately £328 per year in standing charges alone—before you use a single unit of energy.

Why Are Standing Charges So Controversial?

They Hit Low Users Hardest

If you use little energy—perhaps you’re out at work all day, live alone, or have invested in insulation and solar panels—standing charges make up a larger proportion of your bill. You’re essentially subsidising the network costs of heavy users.

They’ve Risen Sharply

Standing charges have roughly doubled since 2021. This is partly because failed energy suppliers left behind debts that were spread across all customers, and network costs have increased.

They Cause “Self-Disconnection”

Prepayment meter customers who can’t afford to top up still accrue standing charge debt. When they do top up, the standing charge debt is taken first, leaving less for actual energy. This creates a cycle of self-disconnection.

Can You Sue Over Standing Charges?

There’s no strong legal basis to sue over standing charges themselves. Here’s why:

They’re Contractual

When you agree to a supply contract, you agree to the tariff terms including standing charges. Refusing to pay is a breach of contract.

They’re Regulated

Standing charges are set within Ofgem’s Price Cap framework. Courts are unlikely to find regulated charges unlawful unless Ofgem itself has made errors.

No Individual Loss

To sue successfully, you typically need to show individual loss caused by wrongful action. Standing charges affect everyone equally under the same tariff.

When You MIGHT Have Grounds

You could potentially challenge standing charges if:

  • You were charged the wrong amount (billing error)
  • Standing charges weren’t clearly disclosed when you signed up
  • You’re being charged standing charges for a property you don’t occupy (complex situations)
  • Charges have been applied to the wrong meter or account

What CAN You Do About Standing Charges?

1. Find a Zero Standing Charge Tariff

Some suppliers offer tariffs with no standing charge (or very low standing charges) in exchange for higher unit rates. These can save money if you’re a very low user.

Check:

  • Utilita – Has offered zero standing charge tariffs
  • Ebico – Social tariff with no standing charge
  • Some smaller suppliers – Compare on price comparison sites filtering for low/no standing charge

Warning: Do the maths carefully. Higher unit rates may cost more overall unless your usage is very low.

2. Switch to a Better Deal

Standing charges vary between suppliers and tariffs. Comparison sites let you filter by standing charge levels.

3. Get Help If You’re Struggling

If you can’t afford your bills:

  • Ask your supplier about hardship funds – Most have them
  • Apply for the Warm Home Discount – £150 off bills for eligible households
  • Contact Citizens Advice – 0808 223 1133
  • Check benefit entitlement – You may qualify for help you’re not claiming

4. Support Campaigns for Reform

Several organisations are campaigning to reform or abolish standing charges:

  • National Energy Action – Fuel poverty charity
  • Citizens Advice – Has called for standing charge reform
  • Write to your MP – Political pressure can change policy

5. Complain If There Are Errors

While you can’t refuse to pay legitimate standing charges, you should complain if:

  • You’ve been charged the wrong rate
  • Standing charges weren’t clearly shown on bills
  • You’re being charged for both gas and electricity when you only have one
  • Charges are being backdated incorrectly

The Political Debate

Standing charges are politically controversial. Various proposals have been made:

Arguments for Reform

  • They’re regressive (hit low-income households hardest proportionally)
  • They discourage energy saving (you pay even if you use nothing)
  • They cause self-disconnection among prepayment customers
  • They’ve risen faster than unit rates

Arguments Against Abolition

  • Network costs are real and must be covered somehow
  • Without standing charges, unit rates would rise (hitting high users)
  • Some network costs don’t vary with usage
  • Zero standing charge tariffs already exist for those who want them

Ofgem’s Position

Ofgem has consulted on standing charge reform but hasn’t made major changes. They’ve acknowledged concerns about the impact on low users and prepayment customers.

What Happens If You Don’t Pay?

If you refuse to pay your energy bills (including standing charges):

  1. You’ll build up debt – Standing charges accrue daily
  2. Supplier will contact you – Letters, calls, emails
  3. Debt collection – May be passed to debt collectors
  4. Credit score damage – Unpaid energy debts are reported
  5. Prepayment meter installation – Supplier can apply to install one
  6. Potential disconnection – As a last resort (with protections for vulnerable customers)
  7. County Court Judgment – If they sue for the debt

This is not a recommended strategy. You’ll end up paying more (with debt collection costs and interest) and damage your credit.

Special Situations

Empty Properties

If a property is empty, you still pay standing charges unless you disconnect the supply entirely. Options:

  • Request disconnection – Costs may apply to reconnect later
  • Keep paying – Often cheaper than disconnection/reconnection fees
  • Check if the meter is yours – Sometimes meters serve multiple properties

Landlords and Tenants

If you’re a landlord with bills in your name during void periods, you’ll pay standing charges. Some landlords switch to a landlord-specific tariff or accept this as a cost of rental property.

Off-Grid Properties

If you’re connected to the grid but generate all your own electricity (solar with battery), you’ll still pay electricity standing charges for the connection. Only full disconnection avoids this.

Where to Get Help

  • Citizens Advice: Energy advice – 0808 223 1133
  • Energy Ombudsman: www.energyombudsman.org – For complaints about billing errors
  • National Debtline: www.nationaldebtline.org – 0808 808 4000 – If you’re struggling with energy debt
  • Your supplier’s hardship team – Ask about payment plans and grants

Summary

You cannot legally refuse to pay standing charges—they’re part of your supply contract. However, you can:

  • Switch to a zero or low standing charge tariff if you’re a low user
  • Complain about billing errors through the Energy Ombudsman
  • Get help with bills through hardship funds and government schemes
  • Support campaigns for reform

The standing charge system may be unfair, but changing it requires political and regulatory action, not individual refusal to pay.

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Need free legal advice? See our guide to free legal help in the UK.

Shaun Walker

Shaun Walker

Shaun Walker is a legal writer who helps readers understand their rights and navigate complex legal situations. He specializes in making the law accessible to everyday people facing real-world challenges.