What does standing charge mean on an energy bill?

A standing charge is a fixed daily amount you pay for having the property connected, whether or not you use any energy that day. It covers the cost of getting energy to the address and maintaining the meter and the network connection, so it appears on every bill, including a bill for a month when the flat was empty. The unit rate is separate: it is the price for each kilowatt hour you actually consume.

The charge is applied per fuel, so a home with gas and electricity pays two standing charges, and it follows the meter rather than the customer: whoever supplies the property on a given day collects that day's charge, including the day you switch. A fixed tariff sets its own daily amount, so compare the standing charge and the unit rate together before choosing a deal.

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