The standing charge is a key part of your energy bill that determines how much you pay. It’s especially important these days, as the average price for energy goes up and down quite frequently.
The recent energy price cap increase announcement means that from April to June of this year, a typical household is expected to pay around £1,849 per year for their energy bills. This adds £9.25 to the average monthly bill. If you’re struggling to make ends meet, LEAP is here to help you understand what makes up your energy bill and how to deal with these changes.
The standing charge is a fixed daily fee applied to your energy bill, which covers the costs of running the overall process of providing gas and electricity to your home. Essentially, it pays for the services we typically need to get energy into our homes. Regardless of how much energy you use, this standing charge applies every day.
For example, if you pay for electricity through a standard variable tariff, your daily standing charge will be approximately 53.80 pence, and for gas, it’s about 32.67 pence. These figures can add up over time, especially for low-energy users, making the standing charge a significant part of your energy costs.
Everyone pays the standing charge, even if you find yourself struggling to afford your energy bills. So how can we manage our energy costs in the face of increasing standing charges?
LEAP offers free energy advice to help you understand your bills and find ways to control your energy consumption. Our trained advisors can guide you through budgeting your energy costs and exploring available grants or funding options.
Take a close look at how you use energy in your home. Simple changes like using energy-efficient bulbs, unplugging devices when they’re not in use, and lowering your thermostat by just one degree can lead to savings.
Keep an eye on Ofgem, the UK’s energy regulator. Their website provides information on price cap changes, helping you to plan ahead towards adjustments and make informed decisions about your energy plans.
We offer downloadable guides full of practical and actionable tips to help you reduce your energy bills. Topics range from heating and insulation to efficient appliance usage.
Understanding the standing charge and how it impacts your bills is the first step toward managing your energy expenses better. As prices continue to rise this upcoming Spring, being informed and proactive is essential.
If you’re feeling overwhelmed by your energy bills, don’t hesitate to reach out for help. LEAP is here to support you with a variety of resources to help with your situation. For more information on how to read and understand your energy bill, download our guide on How To Read Your Energy Bill.
