Standing Charges

What is an energy supplier standing charge?

An energy supplier standing charge is an amount of money charged by your energy supplier for supply costs, energy transport lines and maintenance of energy structures. The standing charge is on top of your energy usage charges and is billed as a fixed daily rate.

 

How much is an energy supplier standing charge?

These charges differ from supplier to supplier, but as a rule of thumb the standing charges will be about 14% of the total bill. These are calculated at between 10p and 80p per day for gas suppliers, and from 5p to 60p per day for electricity suppliers. These bills can add up to around £146 per annum, so it’s a good idea to do some research before committing to a supplier – particularly if you own a holiday home which is only used occasionally.

 

Do I have to pay the standing charge?

Yes. Although it is up to the energy supplier to decide whether or not to levy a standing charge, if it appears on your bill, you are obliged to pay it.

 

Can I find a supplier who doesn’t make this charge?

Yes, you can check online for suppliers with zero standing charges such as Utilita and Ebico. If using one of these companies, your bill will show the standing charge as zero.  Although a zero standing charge may sound tempting, some companies simply offer higher usage rates, so it is worth comparing deals taking into account both the standing charge and unit rate.

 

Does my smart meter show standing charges?

Yes. You will find this on your smart energy monitor display, as well as your daily, week and monthly energy use. For those on prepayment meters, standing charges apply and will be deducted from top up amounts.