'Zero standing charge' tariffs

Right, but you're talking zero standing charges, so I presume I don't have to pay it? That's right. In 2016, Ofgem removed the requirement for tariffs to have a standing charge following recommendations by the Competition and Markets Authority.

However, though suppliers are no longer required to set a standing charge on their tariffs most still do.

There are currently two tariffs that have zero standing charges, Ebico Zero Green Fixed and Utilita's Smart Energy tariff - available for most credit meter customers on dual-fuel, gas-only and electricity-only.

To help you find them, our 'No Standing Charge' comparison on our Cheap Energy Club lets you see deals with zero standing charges only.

Why would I pay a standing charge if I don't have to? Like anything else that has variable charges, it's about the interaction. So if you have no standing charge you may pay more for each unit you use – if you have a high standing charge, you may pay less for usage. So the key is finding the sweet spot depending on how much energy you use. 

Yet for those it isn't right for, paying a standing charge can be a nightmare, as some found when their tariffs had standing charges added after Ofgem changed the regulations. Back then, MoneySaver John told us:

"My electricity bill will rise by more than 1,800%. That's not a typo. I'm told I must now pay a daily standing charge in addition to the tariff rate.

"My garage is remote from my house. It has electricity which I need intermittently. My annual bill is around £6/year but now I'll be forced to pay the standing charge plus the rate per kWh [kilowatt hour], taking the bill from £6 to around £110. I will be paying for something I never use. Thanks Ofgem, really acting in our interests here!"

Got it, so how low does my usage need to be to consider a zero standing charge tariff? This is a tricky one, but we can suggest a general guide: