Does Octopus Energy have a no standing charge tariff?

Last reviewed: 21st March 2025

Octopus Energy is one of the most popular energy suppliers in the UK, known for its competitive pricing, commitment to renewable energy, and customer-friendly service. You can find out more about them in our review here.

As energy prices continue to fluctuate, many households are looking for the best ways to save money on their bills. One of the key concerns is the standing charge, a fixed daily fee that you must pay regardless of how much energy you use.

If you use very little energy or have properties that are unoccupied for long periods, you may prefer a tariff without a standing charge. A no-standing-charge tariff means you only pay for the energy you use, without an additional daily fee.

This article explores whether Octopus Energy offers a no-standing-charge tariff, how it compares to other options, and whether it is suitable for your needs.

What is a standing charge, and why does it matter?

A standing charge is a fixed daily fee added to your energy bill. It covers costs such as maintaining power lines, managing meter readings, and ensuring gas and electricity supplies remain stable. This charge is separate from the price you pay per unit of energy (kWh).

Typical standing charges in the UK in February 2025 are:

Electricity standing charge: Around 56p per day, £16.80 per month or £204 per year.

Gas standing charge: Around 31.47p per day. £9.44 per month or £115 per year.

If you use very little energy (such as in a second home or a property that is rarely occupied), standing charges can feel unfair, as you must pay them even when no energy is consumed.

Does Octopus have a no standing charge tariff?

Right now, there isn’t a no standing charge tariff available through Octopus Energy if you’re a regular domestic customer.

However, if you run a business, you do have the option of a zero standing charge tariff with Octopus.

Currently, all Octopus Energy tariffs include a standing charge. However, in previous years, Octopus has trialled tariffs without a standing charge. These typically balance out the removal of the daily fee by charging a higher unit rate per kWh instead.

Is Octopus Energy getting rid of their standing charge?

The UK energy regulator, Ofgem, is currently considering a rule that would require all energy suppliers to offer at least one zero-standing-charge tariff. This could give you more flexibility, especially if you use very little energy or own a second home that is only occupied part of the year.

If Ofgem enforces this rule, Octopus Energy may have to introduce a no standing charge tariff. Given that Octopus is known for innovation and fair pricing, it is likely they would create a competitive option for customers looking to avoid standing charges. However, until the regulation is confirmed, Octopus Energy continues to apply standing charges to its main tariffs.

At the moment, Octopus Energy has no official plans to remove standing charges for domestic customers. The company explains that these charges help cover the costs of delivering energy fairly to all customers, no matter how much energy they use, although Greg Jackson, Octopus Energy CEO, has said that standing charges in general are too high.

Who benefits from a zero standing charge tariff?

If Ofgem does change the rules and forces suppliers to offer tariffs with zero standing charges, would you be better off with a no standing charge tariff? You may be surprised. These are the people that would likely benefit the most:

• Owners of holiday homes: If you only use energy occasionally, you may save money by avoiding a fixed daily fee. Many holiday homeowners find that standing charges add up even when the property is unoccupied. A no-standing-charge tariff allows you to pay only for the energy used when the home is in use.
• Low-energy users: If your household consumes very little gas or electricity, a tariff where you only pay for what you use could be cheaper. This could apply to people who rely on alternative energy sources, such as solar panels, or those who have energy-efficient homes and appliances.
• Empty properties: If you own an unoccupied home with little to no energy consumption, a no-standing-charge tariff may be more economical. Landlords with vacant rental properties, or homeowners selling a house that remains empty for long periods, could benefit from avoiding daily charges.
• People who spend extended time away from home: If you frequently travel or have a second home, you may not use energy regularly. A no-standing-charge tariff ensures you aren’t paying for energy you don’t use when you are away.

However, these tariffs usually come with higher unit rates, meaning they may not be the best choice if you use energy regularly, so if you are an average user, you may actually be better off with a tariff with higher standing charges and low unit costs.

Here is a quick comparison of the pros and cons of a non standing charge tariff:

Tariff Type	Pros	Cons	Best For
With Standing Charge	– Often lower unit rates – More tariff options available – Suitable for average or high energy use	– You pay a daily fee even if you use no energy	Typical households with moderate to high energy usage
No Standing Charge	– No daily fee on days with zero usage – Potentially cheaper for very low usage	– Usually higher unit rates – Not suitable for moderate or high usage	Second homes, holiday lets, or households using very little energy

Which energy companies have no standing charge in 2025 in the UK?

Currently, only two energy suppliers offer no-standing-charge tariffs in the UK: Utilita and E Energy.

• Utilita – This is a well-known energy supplier that focuses on prepayment and smart meter tariffs. They are popular among customers who prefer to top up their energy rather than pay a fixed daily charge. Their no standing charge tariffs allow you to pay only for the energy you use, making it a good option for low-energy users or those with second homes.
• E Energy – E Energy is a smaller, independent supplier that also offers a no-standing-charge tariff. This supplier aims to provide flexible and cost-effective energy solutions, particularly for customers looking to avoid unnecessary daily fees. Their tariffs may be beneficial if you use very little energy or have a property that is empty for long periods.

In the past, some energy suppliers, including E.ON Next and British Gas, have offered no-standing-charge tariffs, particularly for prepayment customers. While these options are not currently available, it is worth keeping an eye on supplier websites or using comparison tools to see if they reintroduce them in 2025.

Should you switch to a zero standing charge tariff?

Before deciding whether to switch to a supplier with no standing charges, you shoud asking yourself the following:

1. How much energy do I use?
   • If you have very low usage or own a second home, a no-standing-charge tariff might be cheaper. Otherwise, a tariff with a lower standing charge and lower unit rates may be more cost-effective.
2. Is my property frequently unoccupied?
   • Properties left empty for long stretches will benefit from not paying a daily standing charge.
3. Do I have renewable energy sources?
   • If you have solar panels or other renewable sources that reduce your reliance on the grid, you might find that your usage is low enough to justify a no standing charge tariff.
4. Am I willing to monitor my usage closely?
   • No standing charge tariffs often have higher unit rates, so you’ll want to keep an eye on your consumption to avoid unexpectedly high bills if your usage goes up.

By answering these questions, you can quickly work out whether a no standing charge tariff is likely to be the best option for you.

How to switch to the best Octopus Energy tariff

Even though Octopus Energy does not offer a no-standing-charge tariff for regular customers, they do provide some of the cheapest standing charges available. If you are looking for a reliable energy supplier with lower standing charges and excellent customer service, switching to Octopus Energy could be a good option. If you’re still unsure, see what Martin Lewis has to say here.

Before switching however, it is important to compare tariffs and consider your energy usage to ensure you pick the best plan for your needs.

Follow these steps to make the switch:

1. Check available tariffs: Visit Octopus Energy’s website to see the latest tariff options. Octopus offers various plans, including variable and fixed-rate tariffs. If you use our referral link, you even can receive £50 credit upon signing up.
2. Compare costs: Use an energy comparison tool to compare Octopus Energy’s rates with other suppliers. Consider factors like standing charges, unit rates, and any potential savings over time.
3. Consider your energy consumption: If you use very little energy, you might want to look at no-standing-charge tariffs from suppliers like Utilita. However, if you are a regular energy user, Octopus Energy’s low standing charge tariffs may still be the best option.
4. Sign up and switch: Once you have chosen your preferred tariff, sign up through the Octopus Energy website. The switching process is handled entirely by Octopus and typically takes around 21 days. There is no disruption to your energy supply during this time, and you will receive regular updates on the progress of your switch.