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.
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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