Standing charges on household energy bills rose on 1 April 2024, with electricity standing charges up 13% and gas standing charges up 6% compared with the previous quarter, according to analysis published by the End Fuel Poverty Coalition1. Unit costs fell slightly over the same period, but the coalition says they remain almost double their 2021 level1.
The same analysis, compiled from publicly available company accounts by freelance business journalist David Craik, puts total profits across energy producers, network operators and suppliers at £420,395,109,000 since the energy bills crisis began1. Around £30 billion of that, equivalent to over £1,000 per household, is attributed to the firms and business units responsible for electricity and gas transmission and distribution, the "network costs" recovered through standing charges1.
On the coalition's figures, electricity standing charges from 1 April are 147% higher than in 2021, and gas standing charges are 15% higher1. It estimates the amount each household contributes towards gas network costs has risen from £118.53 a year in 2021 to £163.69 a year from 1 April 2024, a 38% increase, and notes that gas network costs are recovered through both unit costs and standing charges rather than standing charges alone1.
| Measure | Change |
|---|---|
| Electricity standing charge, vs previous quarter | +13% |
| Gas standing charge, vs previous quarter | +6% |
| Electricity standing charge, vs 2021 | +147% |
| Gas standing charge, vs 2021 | +15% |
| Estimated household gas network cost, 2021 | £118.53 a year |
| Estimated household gas network cost, from 1 April 2024 | £163.69 a year (+38%) |
A spokesperson for the End Fuel Poverty Coalition said:
"The energy firms are taking us for April fools."
"As standing charges go up today, households will have to cut back on their energy use just to keep their bills the same. This means households continue to suffer as a few energy firms make billions in profits."
Warm This Winter spokesperson Fiona Waters said people are "still paying 60 percent more than they were on their energy bills three years ago"1.
Why it matters for households
A standing charge is paid every day regardless of how much gas or electricity a home uses, so a rise in it increases the fixed part of a bill even where consumption falls. The coalition's position is that a household cutting back on energy use to keep its bill level is responding to exactly that effect1. Because unit costs fell slightly at the same time, the two changes pull in opposite directions, and the balance between them depends on how much energy a home uses. The make-up of an energy bill sets out how unit rates, standing charges and policy costs combine, and the coalition describes network costs as one of the charges keeping electricity bills high1. For a household weighing a fixed versus a variable deal, the annual cost comparison depends on the assumed usage, and the standing charge element is the part that does not move with it. The relationship between wholesale prices and bills explains why unit costs and standing charges can move in different directions in the same quarter.
What happens next
The coalition's figures are dated as at 26 March 2024 and describe charges applying from 1 April 20241. No further changes to standing charges or unit costs beyond that date are set out in the analysis. The coalition states that firms wishing to correct the records can contact it by email1.
Sources1 cited
- Energy profits hit £420bn in recent years as standing charges rise, endfuelpoverty.org.uk