Zero Standing Charges

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    Guide Author

    James Longley

    Managing Director

    min read
    Last Updated May 2, 2024

    Zero Standing Charge Tariffs

    You’ve probably spotted the “standing charge” on your business gas and electricity bills – this is a fixed, daily cost that is added to your bills that you must pay, no matter how much energy you actually use. Your supplier takes this payment as a means of paying for the cost of providing your property with gas and electricity – that is, the cost of keeping your property connected to the energy network, reading your meters, any maintenance, and more. You should be able to find your standing charge on your utility bill. Though the amount you pay in standing charges will depend on your existing business energy tariff, e.g., whether you’re on a fixed or variable contract.

    Fixed Contract Variable Contract
    Charges will vary from one supplier to another. Some will charge a higher rate per unit paired with a lower standing charge, others will offer a lower unit rate and a higher standing charge.

    Typically, large businesses could be charged between [X].

    These often involve a ‘pass-through’ charge, which is paid to those who manage the energy network.

    They are approved every year by the energy regulator but they can vary.

    But there is such thing as a zero standing charge tariff – and they’re available to both homes and businesses.

    Is a zero standing charge tariff the right option?

    Advantages Disadvantages
    You only pay for the energy you use Typically, the price per unit is higher than standing charge tariffs
    Once you’ve used a certain amount of energy, the price per unit will reduce These tariffs are less suitable for premises with high energy consumption

    Ultimately, it’s circumstantial – it all depends on how frequently the premises are being used. Properties that use less energy less frequently could be capable of saving money by switching to a zero standing charge tariff – for example, homeowners may benefit the most from no standing charges, particularly those with second or holiday homes that aren’t using energy all year round. Business or offices that are only open part-time may also benefit from a no standing charge energy tariff, as well as seasonal businesses such as ice cream parlours.

    However, as a business that uses large amounts of energy, you’ll probably find that your energy bills would be substantially higher as a result of the increased rate per unit – essentially, this overpayment would surpass the financial benefits of having no standing charge.

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    Where to find energy suppliers with no standing charges

    At Utility Bidder, we are experts at finding the best deals and tariffs for our customers. We have built strong relationships with the best UK business energy suppliers to get you a quote in minutes and compare your options to find the most competitive price.

    So, if you’d like to switch to a zero standing charge supplier, we can evaluate your options and provide you with the best solution. Most suppliers offer no standing charge energy, so there are plenty of options to compare. But even if a zero standing charge tariff isn’t the best option for you, we’ll do all the leg work to help you find a solution that works.

    Is your current business energy tariff up for renewal? Are you shopping around for new options? We can help you find the best deal to suit you. Contact us for immediate pricing access to almost all UK suppliers.

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    Select Utility
    Now please select a utility I want to get prices for...
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    Next
    Please enter your business gas information
    How much do you spend & how often?

    An estimate is fine if you don't have a bill to hand

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    Get Prices

    Let’s save time, can we automatically gather meter information?

    ? What does this mean?
    To get your quotes at lightening speed we need several key pieces of information which can all be found on your electricity bill. But by simply ticking this box, we can search ‘industry held data’ to get your meter number, electricity consumption and current energy supplier. This means that we can get you quick quotes without asking you to dig out all of your paperwork. This is personal data therefore we need you to allow us to access this information.
    Go Back

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