While bills might seem boring, understanding the basics of gas and electric for students can work in your favour by helping you save money and spot potential mistakes. If you’ve taken a look at your energy bill and seen ‘standing charge’, you may be wondering exactly what that is. Let’s take a look.
What Is a Standing Charge?
This is a fixed daily fee which is added to your energy bill for being connected to the gas and electricity network. Even if you aren’t home and don’t use any energy for a few days, a standing charge will always be included in your energy bill.
What Does the Standing Charge Pay for?
Maintaining the Energy Network
To ensure you and your housemates can use gas and electricity without issues, maintenance may be required. This can include repairing or upgrading infrastructure like pipes, cables, and power lines.
Meter Maintenance and Readings
A standing charge also covers the installation and ongoing maintenance of your meter. At the same time, it contributes to the process of taking meter readings, which is important as it prevents your bills from being estimated, something which isn’t always accurate.
Energy Supplier Administration
A portion of your standing charge goes towards your energy supplier’s administrative costs. This can include tasks like processing bills, providing customer service, and managing IT systems.
Where Can You Find the Standing Charge on Your Energy Bill?
The standing charge is usually separate from your unit rate on your energy bill. It’s often labelled ‘standing charge’ or something similar and will appear in slightly different places on your bill, depending on your provider. You’ll typically find it in the bill breakdown section or under your tariff summary.
How Much Are Standing Charges in the UK?
The specific amount you pay for your standing charge depends on a number of factors, such as your supplier, the type of meter you have, and the area you live in. Standing charges are included in the energy price cap, which is reviewed and changed quarterly. The price cap is set by the energy regulator Ofgem, and limits how much a supplier can charge for unit rate and standing charges. This means that your standing charge will typically change every three months. The exact change each quarter varies, but you can check Ofgem’s website for information about the latest price cap rates.
Standing Charge vs Unit Rate: What’s the Difference?
No matter how much electricity and gas you use, you always pay a standing charge. Unit rates, on the other hand, are the variable part of your bill. Your energy usage is measured in kWh, and you’re charged for each one you consume. If you use less energy, it’ll cost you less. If you use more energy, it’ll cost you more. On your energy bill, your standing charge and unit rate are listed separately.
Ways Students Can Save On Their Energy Bill
Even though you can’t avoid paying a standing charge, you can reduce the variable part of your bill by using less energy. Talk to your housemates and put together a plan of what habits you can all adopt to reduce your energy bill. Here are some ways you can do this:
- Turning off the lights whenever you leave the room
- Lowering your thermostat by a few degrees
- Only running the washing machine and dishwasher when they’re full
- Unplugging devices that aren’t in use
- Switching to LED bulbs
- Charging devices at your university library instead of at home
- Always submitting your meter readings
- Only fill the kettle with the amount of water that you actually need
Save Money On Your Bills With The Student Energy Group
We understand how important it is to save money on your bills while studying. With The Student Energy Group, it only takes a few clicks to put together your perfect all-inclusive uni bills package, complete with energy, water, TV licence, and broadband. We’ll combine your household bills into one monthly statement, which can be split evenly between you and your housemates. We’ll even make sure to plant a tree if you sign up with us! Get a free quote from us today to reduce your financial stress and start saving.
