A standing charge is a fee that customers pay to their energy supplier to keep their home connected to the energy network. If customers have gas and electricity, they will pay a separate standing charge for each fuel. Highland electricity is not a gas supplier so only one charge will apply.
A standing charge covers the cost of carrying out meter readings, maintenance of the meter and other related costs, including the cost of having the supply available, and is usually charged per day at a fixed amount. A standing charge is separate to the charges for energy usage, which customers pay for in addition to their standing charge, depending on how much energy they use.
Do all energy tariffs have a standing charge?No, at present, there’s no requirement for a tariff to include a standing charge,however, most currently do have one. The industry regulator states that while a supplier can include a standing charge in a tariff, it can choose to charge this at zero pence per day. Most tariffs do have a chargeable standing charge. Currently, December 2024, Ofgem are reviewing standing charges. It is expected that all suppliers will berequired to offer tariffs with no standing charges later in 2025. This is still under review.
Why doesn’t everyone simply move to a tariff with a zero or no standing charge? While there are tariffs that don’t charge a standing charge or charge this at zero, the costs that this covers will always need to be maintained. This means that some tariffs that don’t charge a standing charge might come with a much higher unit rate for the energy you use to incorporate these costs.
Often for customers with consistent usage throughout the year, a tariff with a standing charge will be suitable. Those customers with significant low usage over the year, like those with holiday or second homes, may benefit from a low or zero standing charge, even if this does mean a higher unit rate, as the saving from the standing charge could outweigh the cost of the energy consumed.Discussing customers usage and needs with their supplier can often be an ideal way to ensure they are on the most suitable tariff.
