The short answer is that while it may be possible, it usually isn’t going to be your best deal.
What is a standing charge?
A standing charge is a fixed daily amount you are required to pay no matter how much energy you use. This is added automatically to your energy bill and is essentially the fee you pay for your gas and electricity to be supplied to your property.
Energy suppliers use the standing charge to cover the costs of keeping your property connected to the main supply and carrying out meter readings.
How much are standing charges for business energy customers?
Typical daily standing charges for business electricity range from 15p to 160p per day and for business gas 25p to 130p day.
The energy companies like a standing charge tariff because it gives them a degree of revenue predictability. They know no matter what they will be getting at least some money from you. This helps them pay for investment in the UK’s energy infrastructure.
Should my business switch to a zero standing charge tariff?
Some business energy tariffs offer a zero standing charge. Whilst this may seem great, these tariffs are often quite expensive to offset the loss. However, this isn’t always the case, and a business energy contract should be read and understood to ensure it’s the right deal for your business.
While most businesses in the UK operate year-round, and hence use energy year-round, not all do. Many seasonal business such campsites, holiday resorts, ice cream parlours, etc. may only operate for part of the year could actually be left out of pocket is they are on a standing charge tariff.
If you own a seasonal business, you’d end up still paying energy bills even when you’re not using any energy! Choosing your business energy tariff usually comes down to a businesses circumstances and the way they operate.
Sound like the best option is to avoid standing charge tariffs, right? Well, no. Again, this largely depends on the business’s circumstances.
Why No Standing Charges Can Be a Problem
As many businesses’ energy supplier rely heavily on standing charge tariffs for some cashflow predictability. Business energy suppliers can sometimes make it difficult for you not to choose a zero standing charge tariff in a variety of ways.
They do this by increasing the price per kWh of gas and electricity you use. So, whilst you may save money when your business is not open, you’re spending much more when it is.
This makes comparing business energy prices much more important. Ready to compare business energy plans? Our comparison engine looks at all options for your business, including zero standing charge tariffs to make sure you’re finding the cheapest business energy deals possible with British Business Energy. All you have to do it simply fill in our quote form at the top of the page.