If you want to save money on your energy bills, consider comparing your current rates with us at Business Energy Comparison. We’ll be able to provide you with free quotes from the best energy suppliers in minutes.
What Is The Standing Charge On Energy Bills?
Is There A Standing Charge For Smart Meters?
If the energy supplier that you have a contract with charges for standing charges, then you will still be liable to pay them, even if you have a smart meter.
If you have a smart meter, your standing charges will be included in the total bill that shows up on your meter, which also tells you how much energy you have used. This means that even if you don’t use any energy, this number will still increase due to the standing charges you will incur.
There are still some benefits to having a smart meter, however. Standing charges on smart meters are lower, as smart meters help reduce the costs of the energy supplier.
What Are The Advantages Of A Tariff With Zero Standing Charges?
If you have more than one home and use very little energy at one of your homes while it stands empty, then you may benefit from a zero standing charge tariff. This is because you will not have to pay for gas and electricity that you do not use.
A zero standing charge tariff also makes it much easier to compare the costs of suppliers, as you will only have to factor in the cost of energy instead of adding a standing charge to that cost as well.
What Are The Disadvantages Of A Tariff With Zero Standing Charges?
If your household uses a lot of energy, then a zero standing charge tariff might not be the best solution for you if you are trying to save money.
If your supplier does not impose standing charges on you, then you will need to pay more for each unit of energy you use. These suppliers still need to make a profit at the end of the day.
Therefore, a flat daily standing charge can be easier to contend with than a much more exorbitant energy bill due to high usage.
Global energy prices are soaring at the moment. But, thankfully, the government has provided consumers and businesses with many schemes to offer them some relief.
However, if you are paying too much in standing charges or unit rates, compare business gas and electricity tariffs with us at Business Energy Comparison. We can provide you with free quotes from the best energy providers in minutes.
Frequently Asked Questions
Standing charges increase on a yearly basis due to the fact that there are many administrative costs that come into play when customers need to move from an energy supplier that has gone bust.
While this may not seem like a common occurrence, it is, which is why standing charges are increased in order to absorb these costs.
London is the region with the cheapest standing charges at around 30p per day. The reason for this is that gas and electricity do not need to be transported all that far to get to the households of consumers.
The maximum standing charge for electricity is 80p per day.
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