The standing charge is a fixed daily charge that helps cover the costs of providing and maintaining the communal heating or hot water system that serves your development.
Unlike your energy usage charges, the standing charge applies regardless of how much heating or hot water you use.
Your total standing charge is calculated by multiplying the daily rate by the number of days in your billing period.
What does the standing charge cover?
The exact costs included will vary between developments, but the standing charge may contribute towards:
- The fixed charges associated with the building's main energy supply
- Operating and maintaining the communal heating network
- VAT, which is typically charged at 5% for residential customers
In some developments, additional services may also be included, such as:
- Heat Interface Unit (HIU) maintenance
- Meter replacement programmes
-
Energy centre maintenance and servicing
Why do I pay a standing charge?
The communal heating system continues to operate and incur costs even when individual residents are using little or no energy.
The standing charge helps cover these ongoing costs and ensures the system remains available for all residents.
Can standing charges vary between developments?
Yes. The charges included within the standing charge are agreed by the Building Owner or Managing Agent and can vary from one development to another.
For more information about how your tariff is made up, please see our How Has My Tariff Been Calculated? article.