Why Do You Have a Standing Charge?

You have probably seen the words ‘standing charge’ as you’ve been researching energy contracts. This article has you covered and gives you all the details to gas standing charges.

What Is A Standing Charge With Niccolo Gas?

A standing charge is an amount you are charged daily no matter what quantity of energy you use. Standing charge is usually listed as ‘daily standing charge’ and once this total is added up, it is put on your energy bill.

When it comes to gas standing charges, they are usually lower than electricity standing charges.

The standing charge payments go towards the costs of keeping your home connected to the energy network, maintenance and carrying out meter readings.

Also, some of your standing charges will add to the cost of government initiatives, such as aiding vulnerable homes and reducing carbon emissions.

What Is a Standing Charge Per Day?

Each day, no matter how much or how little energy you use, the standing charge applies.

Is It Better To Have Lower Standing Charge or Lower Unit Rate?

When selecting a gas energy package, standing charges and unit rate are two important figures to keep in mind when deciding which company to select.

The unit rate is the price of each unit of energy for gas that you use. This includes costs such as transportation. Unit rates change based on different tariffs, location and payment methods.

When it comes to calculating your package, it is wise to calculate if it is cheaper to get a lower standing charge, or unit rate price.

You should first calculate the standing charge prices for the year (pence per day) x (365 days). Then, with your unit rate price, work out your yearly consumption and multiply the unit rate.

It may work out cheaper to have a standing charge price if you can get a lower unit rate when using more energy. Or, vice versa if you use less energy.

What Are The Benefits And Disadvantages of Standing Charges?

When it comes to standing charges, the benefits and disadvantages vary for each business. It is always advised to research thoroughly for yourself.

Cost of energy can be lower.Cost varies between suppliers.
Supports maintenance and government schemes.Charged every day regardless of energy used.

Do I Have To Pay a Standing Charge For A Gas Meter?

Most business energy packages come with standing charges. Some suppliers offer energy contracts without a standing charge, however, they usually have elevated unit prices.

Just because there isn’t a standing charge does not mean that you will have a lower bill each month.

How Much Are Business Gas Standing Charges?

Standing charges for gas vary with different factors such as the amount of gas you use, the duration of the contract you want and if you want to supply to multiple locations.

It can be difficult to give a quote without knowing information about your business, however, Money SuperMarket advises that the average gas standing charge rates by business size are:

Business TypePrice
Microbusiness23p – 26p
Small Business21p – 22p
Medium Business18p – 20p

If your energy consumption increases, then so will the charge and you will have to pay this charge for the duration of your contract.

Having standing charges in your energy package can keep the overall cost of energy lower, however, you could be paying for gas even if you haven’t used it for long amounts of time. Some companies may be better to have a lower standing charge than the unit rate.

A standing charge is a better option for businesses that are constantly using gas and are without the likelihood of experiencing a long period of not using an energy supply. You may be able to save money on a no standing charge contract so be sure to compare your options.

What Is a No Standing Charge?

Some companies offer no standing charges. This is not being charged a daily rate for your gas supply.

What Are The Advantages and Disadvantages of No Standing Charge Business Energy Deals?

Every energy contract has advantages and disadvantages. This is the same for no standing charge business energy deals.

It is always valuable to research the different pros and cons of each before deciding what is more beneficial for your business.

You only pay for the gas that you use.Higher costs.
Good for seasonal businesses that are not in operation all year round.Less choice in energy packages.

Should I Switch To A Tariff With No Standing Charges?

This is dependant on your own needs and requirements. Usually, most companies will go with an energy package with standing charges, this is because the prices are usually cheaper and there are more contract options to choose from.

If your business is seasonal and is uninhabited for long periods, then it is wise to consider a plan with no standing charges. It would likely save money to go with a no standing charge plan as you will not be using gas for lengthy amounts of time.

Is there a standing charge for an unused gas meter?

If you have gas meters in your property, standing charges will be applied to your account. Some companies may remove the standing charge under certain circumstances.

How are standing charges calculated?

Standing charges vary from company to company. The following factors are how standing charges are calculated:

  • Which tariff you are on.
  • The region you live in.
  • The method you choose to pay your bills.

Do I Need To Pay Standing Charges For An Empty Property?

If you take possession of a property that is empty with a gas supply, however, it isn’t using any energy, some companies may waive the standing charge. This can be easier than cancelling the supply, removing the need for the property to be reconnected to the supply.

To waive your standing order, contact the empty property’s energy supplier. You will need proof from meter readings to show you haven’t used any energy since you took possession.

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