IT ONLY TAKES A MINUTE!You are likely come across the term ‘standing charge’ when looking for a new energy tariff or prepayment meters plan. Standing charges meaning: an amount you are charged each day regardless of the quantity of energy you use. They are usually listed as ‘daily standing charge’ and the amount is tallied up and you pay the total when you pay your energy bill.
The benefits of a standing charge are that they pay for costs such as keeping your business connected to the mains supplies, meter readings and government schemes. They also help to keep the energy price per kWh lower. The disadvantages are the amount that standing charges vary between suppliers and the fact that it is charges every day regardless of whether or not you have used any energy. The majority of UK tariffs include a standing charge however there are some companies that offer a no standing charge option. A zero standing charge tariff may be a great option if you are not frequently using the property being powered. Find out more below.
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No Standing Charges?
As a standing charge is a fixed daily expense, a zero standing charge tariff is a great option for businesses that only operate seasonally/ for a portion of the year. This is because with no standing charge you won’t be paying when you’re not using any energy. This also goes for businesses that close at weekends or close during holidays etc.
What is a no standing charge? Not being charged a daily fixed rate may sound great but it often means that you will be charged more for the energy you’re using. This is why it is extremely important to closely compare the costs to determine whether or not you will actually be better off with a no standing charge tariff.
Energy Suppliers Without Standing Charge
Solarplicity has no standing charges on any of their tariffs, both fixed and variable. They specialize in providing 100% renewable electricity. For more information, head over to the Solarplicity website.
Utilita offers a no standing charge option for prepayment meter customers. They offer smart pay as you go energy and specialize in prepayment meters. For more information, head over to the Utilita website.
Eversmart Energy offers a Goodbye Standing Charge option on their fixed term tariff. Although it is a fixed term tariff they do not charge an exit fee for customers wishing to leave. For more information, head over to the Eversmart Energy website.
Ebico offers a fixed-term zero standing charge energy plan. Ebico also offer green energy plans with no standing charge too. For more information, head over to the Ebico website.
Gas Standing Charge
Gas standing charges are often slightly lower than electricity standing charges. Using standing charges can help to keep the actual cost of energy lower but it can also result in having to pay even when you haven’t used gas for a long period of time. A standing charge is therefore a good option for businesses that are consistently using gas and are unlikely to experience long period of time without using the energy supply. You may be able to save money on a no standing charge contract so be sure to compare your options.
According to Money SuperMarket, the average gas standing charge rates by business size are;
- Microbusinesses are between 23p and 26p
- Small businesses are between 21p and 22p
- Medium businesses are between 18p and 20p.
Electricity Standing Charge
The electricity standing charge is a daily charge that basically covers the costs of being connected to the mains electricity supply. The standing charge differs between suppliers, it is best to compare contract options as depending on your business’ electricity usage you may be able to save money on a standing charge contract due to the lower rate per kWh.
According to Money SuperMarket, the average electricity standing charge rates by business size are;
- Microbusinesses are between 26p and 30p
- Small businesses are between 24p and 26p
- Medium businesses are between 21p and 23p.
SMEs are paying an average electricity standing charge of between 21p and 30p per day, this adds up to between £76 and £109 each year. An average gas standing charge of between 18p and 26p will add up to £58 and £94 each year, so if you are using both gas and electricity you will be paying between £134 and £203 annually. While it may be tempting to jump onto a zero standing charge tariff to save this amount each year, the likelihood is that you will end up paying more per kWh used. Therefore, it is important to determine your usage, the amount of time you will be using no energy at all and calculating which route will work out cheaper for you – you may be surprised by the result.
FAQ
What is a standing charge per day?
This is an amount that is charged each day regardless of energy use, the standing charge helps to cover costs such as keeping your business connected, meter reading and more.
What is the average standing charge for electricity?
The average standing charge for electricity for SMEs is around 25p. The average standing charge for gas for SMEs is around 22p.
Why is there a standing charge for gas and electricity?
A standing charge is a fee from the energy supplier which assists in paying for supplying energy to your business.
What is a standing charge SSE?
SSE, like the vast majority of energy companies charge their customers a standing charge. You can expect to be paying around 30p per day per energy with most of the big 6.
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