When reviewing your business electricity or gas bill, you’ll likely see a cost called the “standing charge.” But what exactly is it — and why are you paying it?
⚙️ The Basics
A standing charge is a fixed daily fee that you pay to your energy supplier, regardless of how much energy you use. It covers the essential costs of maintaining your energy supply, such as:
- Keeping your business connected to the energy network
- Maintenance of wires, pipes, and infrastructure
- Meter readings and data handling
- Supplier admin costs
You’ll see this charge listed separately on your energy bill — usually in pence per day (e.g. 50p/day) — and it’s applied 365 days a year, even if your usage is zero on some days.
💷 Standing Charge vs. Unit Rate
Your total energy bill has two main parts:
- Standing charge: Fixed daily fee (e.g. 45p/day)
- Unit rate: What you pay per unit of energy used (e.g. 28p/kWh)
A contract with a low standing charge might have a higher unit rate, and vice versa — so it’s important to find the right balance for your business’s usage pattern.
✅ Why It Matters to Your Business
- Low-usage businesses (e.g. seasonal operations) may want to explore zero standing charge tariffs.
- High-usage businesses might benefit from lower unit rates, even if the standing charge is higher.
- Understanding both charges helps you choose the right energy contract and avoid overpaying.
🛠️ How Candid Technology Ltd Can Help
We analyse both your unit rates and standing charges to ensure you’re on the most cost-effective energy plan for your specific business needs.
Whether you’re reviewing your current contract or planning a switch, Candid Technology Ltd can help you:
- Compare tariffs from trusted UK suppliers
- Understand how standing charges affect your bills
- Negotiate better rates tailored to your business profile
📞 Need help lowering your energy costs?
Contact us today for a free, no-obligation utility review.
