Why do standing charges vary from different energy companies?

Great question to ask about the variety of prices different energy suppliers might offer as a daily standing charge. So let’s break it down:

 

What is a standing charge?
 

A standing charge is a daily fixed charge that goes towards the cost of supplying energy to your address. It includes the cost of the pipes and power lines, and maintenance of your meters. You pay your standing charge no matter how much energy you use – even if you have a smart meter.

Why do OVO plans include a standing charge? 
 

Because we use a standing charge, we don’t have to use structured unit prices like other suppliers do. We believe our way is honest, transparent and much simpler.

How do other suppliers cover this maintenance cost if they don’t use a standing charge?

All suppliers have to contribute towards these maintenance cost so it’s likely they will include this as part of your unit rate (which might be higher).

Obviously the impact of a standing charge cost will differ depending on whether you’re a high or low energy user. If you’re comparing plans we’d advise finding out your Estimated Annual Consumption (EAC) figure and entering these under the ‘Do you know how much you use?’ question on our Quote and Switch page.

There’s more details on understanding energy tariffs on this great guide.