17 Dec 2025

Why do standing charges exist?

Ever wondered why you’re paying a standing charge? Let’s make sense of it.

A standing charge is a fixed daily cost, whether you use energy or not. Think of it like a ‘connection fee’ or ‘line rental’ that keeps your home linked to the energy network.

What does it cover?

Standing charges pay for things that keep your supply running smoothly, such as:

  • Maintaining pipes and cables so energy gets to your home.
  • Metering and billing systems that track usage and send accurate bills.
  • Customer support and emergency teams are ready to help if something goes wrong.

Why not just add it to the energy rate tariff?

Some costs don’t change, no matter how much energy you use. If they were hidden in the price per kWh, low-usage customers could end up paying more than their fair share. A separate standing charge spreads these costs evenly.

Can you avoid it?

No, not if you want to have a reliable supply of heating and hot water. Even if you’re away on holiday or using very little energy, your home remains connected to the heat network and that costs money.

So why do standing charges exist?

The charges cover the essential services that make sure you have heating or hot water whenever you need it, regardless of how much energy you use.

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