Business Energy Tariffs with no Standing Charge

The ‘Standing Charge’

The standing charges on your bills are fixed, and they exist to cover the cost of you being provided with energy. This includes energy transportation, meter readings (this includes sending out a professional to collect data), and maintenance. In addition to this, it covers the costs of the government initiatives to reduce our carbon footprint. Commonly, standing charges are something we all incur.

The charges are detailed on our energy bills in the same mundane fashion as the actual gas and electricity charges are. Because these charges are so ‘expected’, we do not feel a need to question their nature and whether it would benefit us if they were to disappear.

The ‘No Standing Charge’

A lot of suppliers offer their customers tariffs with no standing charge. However, the question is, by removing these charges are you reducing your costs?

The answer is, not really. The costs will simply be rolled up in your contract.

Contracts without standing charges will generally have higher electricity and gas charges. If your plan does have a high standing charge, the price you are charged for gas and electricity should consequently be lower.

No standing charge tariffs are becoming increasingly popular. This is because they tend to be a little easier to understand.

We would love to hear from you. If you want to save money, time and hassle on your utilities, get in touch and have a chat with one of our energy experts.

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