When Irish households compare electricity tariffs, they tend to focus on the unit rate — the price per kilowatt-hour. That makes intuitive sense: the cheaper the unit rate, the cheaper the bill. But there is a second component on every Irish electricity bill that is entirely unrelated to how much electricity you use, and it can easily account for €150–€220 of your annual bill before you have consumed a single kilowatt-hour.
That charge is the standing charge — and understanding it can change which tariff is cheapest for you.
What Is the Standing Charge?
The standing charge (sometimes called a daily charge or service charge) is a fixed fee charged every single day you are connected to the electricity network, regardless of consumption. It is typically expressed in cent per day (c/day) and appears on bills as a monthly or bi-monthly subtotal.
As of mid-2026, electricity standing charges among Irish suppliers range from approximately 40c/day to 70c/day. On an annual basis:
| Standing charge | Annual cost | |-----------------|-------------| | 40c/day | €146 | | 55c/day | €201 | | 70c/day | €256 |
That is a difference of €110 per year between the lowest and highest standing charges currently available in Ireland — from the standing charge alone, before a single unit of electricity is consumed.
What Does the Standing Charge Actually Pay For?
The standing charge covers the cost of maintaining your connection to the national electricity grid — metering infrastructure, network maintenance, billing administration, and a portion of the Public Service Obligation (PSO) levy. It is not pure supplier profit; a large part is passed through to ESB Networks, which operates the distribution system.
However, the exact proportion that goes to the supplier versus the network varies, and suppliers do have some flexibility in how they structure the split between standing charge and unit rate. This is why comparing total annual cost — not just unit rate — is the only reliable way to find the cheapest tariff for your home.
Why Low-Usage Households Must Pay Attention to Standing Charges
The standing charge has a disproportionate impact on households with below-average electricity consumption. Consider two tariffs:
| | Tariff A | Tariff B | |---|---|---| | Unit rate | 28c/kWh | 26c/kWh | | Standing charge | 42c/day | 65c/day |
For a household using 5,000 kWh per year:
- Tariff A: (0.28 × 5,000) + (0.42 × 365) = €1,400 + €153 = €1,553
- Tariff B: (0.26 × 5,000) + (0.65 × 365) = €1,300 + €237 = €1,537
Tariff B wins by €16 per year, even though its unit rate is 2c/kWh lower.
Now the same calculation for a household using 2,000 kWh per year (a small apartment, a holiday home, or a light user):
- Tariff A: (0.28 × 2,000) + (0.42 × 365) = €560 + €153 = €713
- Tariff B: (0.26 × 2,000) + (0.65 × 365) = €520 + €237 = €757
For the lower-usage household, Tariff A is now cheaper by €44 — the standing charge difference dominates because there are fewer kWh to spread it across.
This is why any honest electricity comparison must account for your actual usage. GoSwitch calculates total annual cost automatically once you enter your kWh.
How to Find the Standing Charge on Your Bill
Irish electricity bills must itemise the standing charge separately from the unit rate charge. Look for:
- "Standing charge" or "daily charge" — listed as a number of days at c/day
- The figure is usually near the unit rate line in the charges summary section
- On some bills, it may appear as a fixed monthly amount (divide by ~30 to get c/day)
If you are comparing tariffs directly on a supplier's website, look for the full rate card — not just the advertised unit rate. Suppliers including Electric Ireland, Bord Gáis Energy, SSE Airtricity, Energia, and Flogas are all required by the CRU to publish their full tariff details including standing charges.
VAT on the Standing Charge
Like the unit rate, the standing charge is subject to VAT at 13.5% in Ireland. When suppliers advertise rates, they may show figures including or excluding VAT — always check which is which before comparing. GoSwitch displays all-in annual costs including VAT, so comparisons are straightforward.
The PSO Levy and the Standing Charge
The Public Service Obligation (PSO) levy is a government charge that funds renewable electricity generation and peat-powered stations in the midlands. In some years it has been zero or negative (a credit); in others it has added meaningfully to bills. The PSO levy is applied to accounts based on connection type and meter type and typically appears as a separate line item or is incorporated into the standing charge depending on how the supplier presents their billing.
Like carbon tax on gas, the PSO levy is not a reason to choose one supplier over another — it applies equally across all suppliers. But it is worth knowing it exists so you are not confused when a bill comes in slightly higher than your tariff arithmetic suggested.
Compare Total Annual Cost, Not Just Unit Rate
The only number that actually matters when choosing an electricity tariff is the total annual cost for your household's usage pattern — and that means including the standing charge.
Enter your annual kWh, select Electricity, and GoSwitch will rank every current Irish tariff by true annual cost — unit rate and standing charge combined. The cheapest tariff by unit rate is not always the cheapest tariff overall.