Why tge standing charge?

Can someone explain to me the "Daily Standing Charge"?

Why do we have a standing charge for our energy bills? 

In the current climate, those people hardest hit, who are scrimping and saving, and using less fuel, are still having to pay a standing charge.  Taking this to the extreme, if someone uses no elec or gas, they still pay the standing charge.  If one uses no fuel, what does one get for paying the standing charge?

Why not only pay for what we use? Would that not be fairer, especially for those on the lowest incomes, and struggling the hardest?

Or am I just missing something? (Be nice!).


  • Vincero
    Vincero Posts: 67 Forumite
    First Post
    The standing charge covers the costs associated with maintaining infrastructure, metering, etc., And varies by region. The more remote the higher the standing charge will likely be - someone has to absorb the cost of all those repair crews fixing downed power lines, digging new pipe / cable ways, etc.

    It has now increased to act as a sort of pot to cover the cost of failed energy providers.

    As most people will still use more than a couple of kWh a day of energy, it is still usually a fraction of your daily cost (unless you are trying to get as close to zero as possible), but is not as insignificant as it used to be. Most people will now spend over £200/year on standing charges alone.
  • molerat
    molerat Posts: 32,013 Forumite
    Name Dropper Photogenic First Post First Anniversary
    Bieffe said:

    Or am I just missing something? (Be nice!).

    Yes you are, the many many other posts on exactly the same subject where the answers are given

  • [Deleted User]
    Vincero said:

    It has now increased to act as a sort of pot to cover the cost of failed energy providers.

    Not wishing to ‘nitpick’ but readers might be a little confused. 

    For clarity. We are paying absolutely nothing to failed energy providers. We are reimbursing SoLRs for the additional costs that they have incurred taking on customers from failed suppliers - this includes the cost of any additional energy that the SoLR has to purchase (less the capped price that the consumer pays) to service these customers. We are also paying for consumer credit protection.

    The failed supplier is subject to normal company failure procedures.
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