Zero Standing Charge Tariffs

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James Longley

Managing Director

min read

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.

What does it mean to have no standing charges?

If you’re on a zero standing charge tariff, you’re only paying for the gas and electric that you use, rather than forking out a daily fee on top of that. That means that, if you don’t use any gas or electricity – when the office is closed over the weekends or Christmas, for example – then you won’t be charged at all.

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.

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.

Frequently asked questions

The energy regulator, Ofgem, will implement a SoLR or “supplier of last resort” if your supplier ceased business.

No, if your supplier ceased business, your supply will not be cut off. This is because you will be given a SoLR or “supplier of last resort” to ensure you have a continuous supply of gas and electricity. Other suppliers will bid to replace the contracts of businesses that have ceased trading and Ofgem will try to get the best possible deal for the customer in these circumstances.

Ofgem will be working on finding your new supplier as quickly as possible. This will be announced on their website within a few days.

Your business contract will now be void and you will immediately be put on an “out of contract” rate which may result in your bills increasing. This will only be the case until a new tariff is agreed.

In regards to domestic customers, the protection of funds paid by non-domestic customers into their accounts “cannot be guaranteed”. Find out more information here.

Depending on your new supplier, you will still need to pay the debt to your new supplier if they have agreed to take on customer debts owed to your old supplier. If this is not the case, you will need to set up a payment plan with your old supplier’s administrators that will get in touch with you.

Businesses that use a smart meter will be appointed a SoLR and will still have access to a continuous supply. Similarly, to traditional meters, Ofgem will quickly find a suitable supplier for the circumstances. If a supplier is appointed but they can’t operate your smart meter in smart mode, it will work as a traditional meter for that time.

Ofgem advises that you should not cancel your direct debit as your new supplier will get in touch to provide further information on direct debit arrangements.