articles
Nov 12, 2013

Gas and electricity tariffs with no standing charge

Households that opt for tariffs without a standing charge will not incur any costs on days when they don't use gas or electricity.

Pound coins

Household energy bills can usually be broken down into two main areas - the first is how much you pay per unit of gas and electricity you consume (measured in kWh), while the second is a daily standing charge that's applied irrespective of whether or not you've used any power.

The cost of your standing charge will depend on your supplier and the nature of your deal. Daily charges for gas can be anywhere between 20p and 50p, while electricity varies from 8p to 40p.

The majority of UK homes tend to pay for their energy on these terms, although suppliers do offer tariffs with no standing charge.

What is a no standing charge tariff and how does it work?

If you're on a no standing charge tariff, you'll only pay for the energy you actually use - you will not pay anything for the days when you consume no gas or electricity.

While these deals have their benefits, they do mean that you'll be charged more per unit of energy you do use. However, the good news is that once your consumption reaches a set level, the unit charge will decrease for the remainder of the billing period.

Should I get a no standing charge tariff?

In most cases it doesn't make a huge amount of difference what type of tariff you choose - the vital factor is to ensure that you're getting a good overall price for your energy.

Despite this, deals that don't carry standing charges have often been popular among people with low or sporadic energy use, for example those who have holiday homes or properties that may be left vacant for long periods of time. The bills will be zero for the periods when the property is not occupied.

Is the government doing anything to change daily standing charges?

Single Unit Rate legislation comes into effect universally across domestic tariffs on 31st December 2013. Energy companies are required to write to their customers one month beforehand to explain any changes that will take effect on their particular tariff and whether their bills are likely to change. There will be winners and losers, as is always the case whenever certain tariffs are withdrawn and replaced by others, so it's important to compare the market and make sure you are getting the best deal.

Our energy price comparison service caters for all of the charges that are associated with your bills, and when we're searching to find you a better deal we'll make sure nothing is overlooked.

Enter your postcode in the box on the right hand side of the page to get comparing and start saving. 

Image credit: Images of Money



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