What Is a Standing Charge?
A standing charge is a fixed daily cost included on many business electricity and gas bills.
This charge helps cover the cost of maintaining energy infrastructure and supplying energy services to a property.
Standing charges apply regardless of how much energy is used.
What Standing Charges Cover
Standing charges may contribute toward:
Meter maintenance
National infrastructure
Network access
Billing systems
Supplier operational costs
Why Standing Charges Matter
Businesses should review standing charges when comparing suppliers because:
Lower unit rates may include higher standing charges
Usage patterns affect overall value
Contract structures vary between suppliers
For some lower-usage businesses, standing charges can significantly influence total costs.
Comparing Commercial Energy Agreements
Businesses should compare:
Unit rates
Standing charges
Contract length
Pass-through elements
Supplier support
Understanding the full contract structure helps businesses make informed decisions.