Standing charges for
electricity and gas
Standing charges for
electricity and gas
We know that energy bills can be confusing. It's not always easy to understand all the different parts that make up your bill. One of the things that often causes confusion is the standing charge. So, let's break it down and make it clear.
What is a ‘standing charge’?
A standing charge is a fixed daily amount you pay for your gas and electricity, no matter how much you use. Think of it like a subscription fee for having your home connected to the energy grid. Essentially, it’s about keeping the lights (and gas) ready and available, even if you’re not using them.
Why do we have standing charges?
Standing charges help cover the cost of getting energy to your home. This includes things like:
Maintaining the pipes and wires:
Keeping the network that delivers your energy safe and reliable is expensive!
Upgrading the system:
As more people switch to renewable energy, the energy grid needs to be modernised to cope.
Connecting your home:
This covers the cost of physically connecting your home to the network.
So, while it might feel like an extra cost, it’s essential to keeping energy services running smoothly.
Electricity vs gas standing charges
You have separate standing charges for your electricity and gas supply. They cover different parts of the energy system. Your electricity standing charge contributes towards the cost of the power lines and infrastructure that bring electricity to your home. The gas standing charge covers the cost of the gas pipes and network.
Though these charges differ slightly between providers and regions, they’re always working behind the scenes to make sure energy reaches your home reliably.
What is meter size value (MSV)?
Your meter size value (MSV) is a number that reflects how much gas or electricity your home can use at any one time. This is particularly relevant to gas meters, where higher MSVs indicate a greater capacity for energy use. It's a bit like the size of a water pipe – a larger pipe can deliver more water.
How does MSV affect standing charges?
In some cases, a larger MSV might mean a slightly higher standing charge. This is because a home with a higher MSV has the potential to draw more energy from the grid, and this needs to be factored into the cost of maintaining the network. However, for most residential users, the MSV’s impact on the standing charge is minimal, and any differences are generally modest.
Can I avoid paying a standing charge for my energy?
Almost everyone has to pay a standing charge. It's how we keep the energy system running for everyone. There are a few rare exceptions, like if your property is unoccupied for a long time, and you've arranged to have your meter removed. Keep in mind, though, that reconnecting services or reinstalling meters can involve additional costs. Read more about standing charges in our T&Cs.
Understanding the Ofgem energy price cap and its connection
Ofgem is the energy regulator in Great Britain, and they set a limit on how much energy suppliers can charge for each unit of gas and electricity you use. This is called the price cap. and affects the overall cost of your energy. You can use the price cap as a benchmark when comparing plans, especially if you’re looking at switching suppliers for a better deal. Get an energy quote.
Practical tips to reduce your energy bill
While you can't avoid standing charges, you can save money on your energy bill by using less energy. Here are a few ideas:
- Switch to energy-efficient appliances: Look for appliances with a high energy efficiency rating
- Be mindful of your energy use: Turn off lights when you leave a room, and don't overfill the kettle
- Get a smart meter: A smart meter can help you track your energy usage and identify areas where you can save
For more helpful tips, check out our energy saving guide: sainsburysenergy.com/energy-saving-tips
Explore Sainsbury's energy plans and find the perfect fit
We offer a range of energy plans to suit different needs, budgets, lifestyles and usage patterns. Whether you're looking for a fixed tariff, a variable tariff, or a green energy plan, we have something for you.
To find out more, visit our plans page: sainsburysenergy.com/our-energy-plan
Still have questions? Contact our friendly customer service
If you have any questions about standing charges or anything else related to your energy bill, our friendly customer service team is here to help.
You can reach them here: sainsburysenergy.com/contact-us