WHAT IS STANDING CHARGE: How It Works

standing charge

Well we receive our energy bills and definitely have to clear them monthly or for the fixed term we purchase. We also make this payment with standing tariff. What is standing charge, can anyone get a no standing charge energy? This guides details everything you need to know about the British gas and electricity standing charge.

Standing charge

Right at the top of your gas or electricity bill, you find an additional amount just above the one you pay per unit of consumption, which is your standing charge. British electricity and gas providers incur costs in the cause of providing you with energy. Well, this cost differs from your gas or electricity bill, what is the standing charge? Let’s find out.

What Is Standing Charge

A standing charge is made up of charges connected with delivering electricity and gas network services to you. This is also a part of the supply costs in servicing your account.

It is a flat daily fee, that you pay in addition to your energy consumption.  Furthermore, it include the cost of reading your meter, servicing and maintaining your account, cost of connection to the energy network and so on.

What is more?

Your standing charge count whether or not you use gas and electricity daily. It is simply a daily fixed cost.

How Does It Work?

The standing tariff is charged by your energy provider. They consider the cost of providing you with gas and electricity. The amount is right above your estimated energy consumption. It also counts whether or not you use gas and electricity.

Prepayment Meter And Standing Tariff

As you consume gas or electricity, your prepayment meter’s credit balance diminishes. Prepaid energy is frequently the most expensive option, and even if you don’t use it, you’ll still be charged a monthly fee. After several days without credit, you’ll be charged all outstanding standing charges. Although the tariff on prepayment varies from one energy company to the other, it has an average of about 28p daily fee.

Dual Fuel And Charges

The dual-fuel allows you to combine your gas and electricity in a single bill. This means rather than getting double bills, you only get one. However, this does not mean the standing charge of any is scraped. You still pay the standing charge due to both energy consumption.

How much does dual fuel cost

According to Ofgem, the average dual fuel energy bill is £104.50 per month and  £1,254 per year.

British Gas Standing Charge

Ideally, British gas is one of the six big energy companies in the UK with a standing tarrif of £190 per year. British Gas charges a daily standing charge of 26.01p this is irrespective of whether you use the energy or not.

According to selectra.co.uk, British gas has over 55 per cent of excellence reviews of the 76,500 customers on their service irrespective of their standing charge.

Cost typePrice
Electricity unit rate20.773p per kWh
Gas unit rate4.187p per kWh
Electricity standing charge23.307p per day
Gas standing charge26.123p per day
Total estimated cost per month£107.11
Total estimated cost per year£1285.28
Exit fee£0
Table credit:selectra.co.uk

British Gas Tariff Price Changes

In The MarketA look back at British Gas price hikes over the last few years. Changes are in accordance wit  Ofgem Pricing Cap.

April 2018: A 5.5 per cent increase in standard variable tariff.

October 2018: Basic variable rate increases by 3.8 per cent

April 2019: Another record increase of 10.5 per cent

October 2019: British Gas will lower its normal tariff 

April 2020: In anticipation of the Coronavirus pandemic, the supplier lowers its normal rate and lowers the price cap. British Gas will have lwered its rate a third time in a row, this time to a record low of £1,042 per year.

October 2021: When British Gas raises its regular tariff, the price cap rises to £1277

How To Adjust Your British Gas tariff Rate

British Gas customers who are already on the standard price can easily switch to another plan.To do this, c ontact British Gas by phone or online to change your address information or to cancel your service. Additionally, you can switch to a differernt tarrif or supplier without paying an exit fee. But you will have to contact them 49 days before your contract ends.

British Gas Fixed Tariffs  

British Gas is usually a fixed rate tariff. A fixed rate tariff, you can rest assured that your unit rate and standing fee will not fluctuate for the duration of your contract, which with British Gas is typically 12-24 months.

Types Of British Gas Fixed Tariff

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  • The fixed one V12
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Electricity Standing Charge

Your electricity standing charge is the fixed cost of providing you with electricity. You will have to pay them whether or not you use electricity or not.

Types Of Electricity Standing Charge

There are basically four types of electricity standing charge which are;

  • 24 hours Urban
  • Urban Nightsaver
  • 24 hours Rural
  • Rural Nightsave

Rural Or Urban

Only one out of the four apply to you. Only ESB Networks determines whether your property is an urban or rural-based category. This is not dependent on the rate of civilization in an environment but on the distance between the network and your property. What determines whether your house is in an urban or rural category the how far your house is from the network. As a result, houses far away from the network pay higher than others because it cost more to supply electricity to them.

24 hours/ Nightsaver

You are allowed to choose the tariff you want. This is between nightsaver and 24hours. unlike the urban or rural standing charge. 24hr or Nightsaver depends on your rate type.

People who use 24 hours pay a single rate for electricity no matter what time of day it is. While people who use nightsaver have two meters. The first tracks daytime usage and the second tracks nighttime usage. Unfortunately, this comes at an extra standing charge.

No Standing Charge Energy

We already know a standing charge is the cost of fixed and other expenses incurred in the cause of your gas and energy supply. Can you get an energy supply with no standing charge? Will a no standing-charge energy deal save you money? I am sure it will.

What Is A No Standing Charge Energy

A no standing charge gas and electricity is one that allows you to pay for your energy consumption with no extra cost. You only pay for what you use rather than a daily fee. Additionally, a no standing charge simply means you only deal with the unit rate.  

Benefits  Of No Standing Charge

  • The main benefit of this is that you get to pay for your energy consumption.
  • No daily fixed charges even while you are away from your home
  • The unit rate can be reduced when you used up to a certain rate.

Drawbacks of No Standing Charge

Companies with no standing charge usually have one thing in common. They have a significant high unit rate than other tariffs. So, while you’ll save on the standing charge, you may end up spending more per month, especially if you consume a lot of energy.

FAQs On What Is Standing Tarrif

Is it better to have a lower unit rate or standing charge?

If you use a lot of gas and electricity, you’ll probably want a higher standing charge and a lower rate. But if your usage is low, then you’ll want a tariff with a cheaper standing charge. Remember, it almost always works out cheaper to get your electricity and gas from the same supplier with a ‘dual fuel’ deal

How do I get rid of a prepayment meter?

If you don’t want to be on prepayment anymore, your supplier must remove your old-style prepayment meter and give you an old-style credit meter or smart meter instead. If you’d prefer to stay on prepayment, your supplier must reset your meter so you’re not paying too much.

Is pay as you go Gas and Electric more expensive?

Prepaying for your energy lets you pay small amounts often, but it’s usually a more expensive way to pay than getting a bill. If you have a smart meter, your supplier can change its setting from credit to prepayment.

Is it cheaper to pay monthly for gas and electric?

Is it cheaper to pay energy bills monthly or quarterly? Direct debit is usually the cheapest way to pay your energy bills. However, there tends to not be much difference in price between a quarterly and a monthly plan

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Is it cheaper to pay energy bills monthly or quarterly? Direct debit is usually the cheapest way to pay your energy bills. However, there tends to not be much difference in price between a quarterly and a monthly plan

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