Standing Charges

Published: | Updated: November 12, 2018

Definition - What does Standing Charges mean?

Standing charges are fixed amounts that are applied to gas and electricity bills. The standing charge helps the supplier to cover fixed costs, which include the provision of a meter and connection to the network. A standing charge is made up of a combination of the fixed charges associated with providing electricity and gas services and a share of the supply costs in serving the account.

Safeopedia explains Standing Charges

All energy tariffs include standing charges. A portion of standing charges go towards covering government initiatives to reduce carbon emissions. Standing charges are listed on energy bills as a daily unit rate. There are some energy plans that do not include standing charges. However, an energy plan with standard charges is often less expensive than one without.

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