What is a standing charge?
A standing charge is a fixed daily amount applied to your bill, which covers the cost of getting energy to your home. It includes the charges we have to pay the companies who own and maintain the wires and pipes that carry your energy.
How much is my standing charge?
How much you pay will depend on where you live, and how you pay your bill. The examples we’ve included below are for customers who pay by Direct Debit.
Where you live affects how much you pay as it costs more to service some regions than others. Ofgem has published an average but this may be different to the rate you see in your bill.
Currently, the average electricity standing charge is slightly more than 58p per day. Some regions pay more than the average – for example, in Southern Scotland it’s around 62p. Some pay less – in London it’s more like 38p. For gas, there’s just one standing charge amount with minute variations for all customers: 29.6p.
How you pay for your energy also makes a difference to your standing charge. If you pay by other methods than a Direct Debit - such as cheque, debit or credit card, or bank transfer - you’ll pay more than the amounts mentioned above.
Why has my standing charge gone up?
The amount suppliers pay the network companies is increasing for two reasons. First, the cost of maintaining the network has gone up. On top of this, there’s an extra amount payable to recoup the costs associated with the collapse of so many energy suppliers in previous years.
All prices mentioned here are inclusive of VAT.