The Previous Standing Charge Structure
E.ON Next SME electricity fixed contracts historically recovered a larger proportion of costs through the unit rate. Many quotations used a standing charge of around 30p per day, which made the supplier particularly attractive to some low usage businesses.
Not every customer received 30p per day. Quotations varied by customer, meter profile and consumption. The 30p figure became well known in the SME market but was not universal.
The New Dynamic Standing Charge Structure
From 14 July 2026, E.ON Next introduced a revised approach for SME fixed electricity contracts. Under the Dynamic Standing Charge structure, a larger proportion of fixed industry costs is recovered through the standing charge rather than the unit rate.
E.ON Next has stated that the change reflects significant increases in fixed industry costs, particularly TNUoS (Transmission Network Use of System) and DUoS (Distribution Use of System) charges. Recovering more of these costs through the standing charge may allow a lower pence per kWh rate.
Renewal offer letters from 14 July 2026 may reflect the revised Dynamic Standing Charge structure.
The Low Standing Charge Option
Alongside the Dynamic Standing Charge, E.ON Next introduced a Low Standing Charge option for SME fixed electricity contracts. This provides a lower daily standing charge, with a potentially higher unit rate as a trade-off.
Important: The Low Standing Charge option may be withdrawn by E.ON Next. Confirm availability before making a decision.
Comparing The Two Structures
| Feature | Dynamic Standing Charge | Low Standing Charge |
|---|---|---|
| Daily standing charge | Higher proportion of fixed costs recovered | Lower daily charge |
| Unit rate | Potentially lower pence per kWh | Potentially higher pence per kWh |
| Best suited to | Higher usage businesses where unit rate matters more | Lower usage businesses where standing charge matters more |
| Available for new connections | Yes | No |
| Available for flexible tariff | Yes (default on expiry) | No |
| Can be backdated | N/A | No (not before 14 July 2026) |
Low Standing Charge Is Not Automatically Cheaper
The correct comparison is the estimated annual spend based on realistic consumption. A lower daily standing charge with a higher unit rate can cost more overall for a business with higher consumption.
For example, a business using 50,000 kWh per year will pay considerably more in unit rate charges than a business using 5,000 kWh per year. For the higher usage business, the unit rate may have a much greater effect on the annual cost than the standing charge.
These are illustrative examples only. Actual tariff prices are not published here as they change regularly.
Gas tariffs are not changing under this update. The changes apply to SME fixed electricity contracts only.
Frequently Asked Questions
Not Sure Which Structure Is Right For Your Business?
Send us your latest bill or renewal offer. We will compare the Dynamic and Low Standing Charge options based on your actual consumption and explain which looks better value for your specific meter.