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.