“Unit Rate”? “Standing Charge”? What does it all mean?!
A “standing charge” is the cost of having a gas and electricity supply; it’s the fee you pay to your energy supplier simply because it gives you access to energy. It’s paid at a flat rate – ranging from around 10p-80p/day for gas and 5p-60p/day for electricity.
You pay usage charges (see “unit rate”) on top. If there wasn’t a fixed standing charge, the energy companies would need to charge a lot more for each unit of energy you used.
This charge is an industry standard and can typically be seen broken down as a component of the total charge on any energy bill you may have.
The amount is given in pence per day.
This is the amount of money (in pence) you are charged for a single “unit” (or Kilowatt hour, kWh) of gas or electricity.
For an idea of how much this is, an average kettle may require 1/10 kWh to boil.
Our partner, Octopus Energy has prepared a great guide with more details about energy – see The Beginner’s Guide to Buying Energy.