Why are electricity bills so hard to decode? Between kilowatt hours, peak/off-peak pricing, and fixed daily charges, it can feel like a maze. But one charge quietly eats away at your wallet every single day—whether you boil a kettle or not. It’s called the standing charge. And if you’re trying to cut costs, knowing who offers the cheapest standing charge for electricity might save you more than switching plans on price per kWh alone.

Let’s break it down—plainly, practically, and with a few behavioural insights along the way.

What is a standing charge in electricity bills?

A standing charge is a fixed daily fee your electricity provider charges just to keep you connected to the grid. Think of it like paying rent for access, even if you use zero power that day.

In Australia, it typically covers:

• Network maintenance

• Meter reading and admin costs

• Retail service fees

Most plans in the market bundle this into a cents-per-day cost, which gets added to your bill regardless of usage. It’s one of those “set-and-forget” costs—easy to overlook but impactful over time.

So, which company has the cheapest standing charge in Australia?

Let’s cut to the chase. Here’s a snapshot of retailers with competitively low standing charges (based on publicly available data from comparison tools and retailer disclosures as of late 2024):

⚠️ Note: Prices vary based on location, meter type, and plan type. What’s available in Sydney could differ from regional Victoria or Brisbane.

Does the cheapest standing charge mean the cheapest bill?

Not always. This is where things get behavioural.

Loss aversion—a cognitive bias we all share—makes us overly sensitive to fixed fees. We hate “paying for nothing.” So a low standing charge feels attractive. But here’s the rub:

• A cheaper daily charge might be paired with higher per kWh rates

• Discounts and solar feed-in tariffs may offset a higher standing charge

• Low-usage households (e.g. renters, solo dwellers) benefit more from cheaper fixed costs

Framing matters here. Some plans pitch “no daily charge!” but hike up the variable rate. Always check the full breakdown using your actual usage—not just estimates.

Why do electricity providers charge standing fees?

Electricity isn’t just about usage; it’s about availability. Keeping power flowing requires:

• Grid infrastructure maintenance

• Customer support operations

• Meter reading systems

• Regulatory compliance

Even if you go on holiday for a month, your provider still shoulders those costs to keep your home connected. That’s what the standing charge helps recover.

But let’s be honest—many customers would prefer to pay only for what they use. Some retailers like Energy Locals or Amber Electric are experimenting with wholesale-based or membership-style pricing to address that.

Are there plans with no standing charge?

Yes—but with caveats.

A few niche or digital-only retailers offer zero standing charge plans. Instead, they charge slightly higher usage rates. These can work well for:

• Minimal users (e.g. holiday homes)

• Households with battery storage or solar

• Very low day-to-day usage

But if you’re a family of four running a dishwasher and heat pump daily, a higher variable rate could outweigh the benefits quickly.

Real-world example? One Sydney couple with solar panels cut their bill by 30% after switching to a low-standing-charge plan and shifting usage to the day. But their friends in the same street—without solar—paid more on the same plan.

How do electricity brokers help with this?

Here’s where electricity brokers come into play. They act as middlemen who:

• Analyse your usage profile

• Compare live offers across multiple retailers

• Uncover hidden costs like inflated standing charges

• Sometimes negotiate exclusive rates

While some brokers are paid by retailers (raising questions about impartiality), others operate on a subscription or flat-fee basis, which gives them more incentive to find genuinely cost-effective plans.

If you’re running a small business or juggling multiple meters across properties, a broker can save you hours—and real money—by filtering for plans that minimise standing charges without overcharging elsewhere.

For a deeper breakdown of how brokers and retailers work, this guide explains it well.

What should I look for when comparing electricity plans?

A low standing charge might seem like a no-brainer, but smart comparison means balancing multiple levers.

Here’s a quick checklist:

• Standing charge: Under 90 cents/day is considered low

• Usage rate: Check peak vs off-peak pricing (especially if you have a smart meter)

• Solar feed-in tariffs: If you have panels, this can flip your bill into credit territory

• Exit fees: Avoid plans that lock you in

• Discounts: Conditional discounts (e.g. pay on time) can be traps

• Contract length: Flexibility often beats flashy intro offers

Tip: Use your last three bills to model your real-world costs—not just what’s advertised.

Are standing charges going up?

Yes—and no.

While wholesale electricity costs have fluctuated wildly in recent years (thanks, gas prices and El Niño), standing charges have crept up slowly but steadily.

Some networks argue it’s to recover infrastructure upgrades, like renewable grid connections. But consumer groups warn this disproportionately affects low-income and low-usage households.

In fact, the Australian Energy Regulator recently flagged concerns that standing charges are being used to “flatten out” risk for retailers, rather than reflect actual cost-to-serve.

For the most up-to-date trends and advocacy efforts, check the Energy Consumers Australia website.

FAQ: Standing Charges in Australia

Q: Can I negotiate my standing charge?
Not directly—but switching providers can help you land on a better deal overall.

Q: Why is my standing charge higher than my friend’s?
It could be your region, meter type, or plan. Some older meters attract higher network costs.

Q: Do solar customers still pay a standing charge?
Yes—unless you’re entirely off-grid. The charge covers your grid access, even if you export more than you consume.

Final thoughts

Electricity standing charges are like gym memberships—costing you daily, whether you “use” them or not. The trick isn’t just finding the lowest price, but the right plan structure for how you use power.

For those trying to wrangle rising energy costs, this isn’t just about cents per day—it’s about feeling in control of your bill again. And sometimes, that clarity starts with understanding the quiet charges hiding in plain sight.

Want to know how electricity brokers factor into your options? This guide to electricity brokers, suppliers and retailers lays it out clearly—no fluff, just facts.