Standing Charge

What is a Standing Charge?
A standing charge covers the fixed costs of providing a utility, it could be electricity, gas, water, or heating. When the new heat network provides heat to homes, there will be a new standing charge. This is a pay-as-you-go charge which pays back the heat network build and ensure that it is maintained in the long-term.

What the standing charge includes

Building the energy centre and pipe network

Operation, maintenance of the energy centre

Administration charges

Financing

Metering and billing administration

Who pays the standing charge?

The standing charge will be applied to leasehold and tenant properties.

Rent paid by tenants will fully cover the standing charge.
Leaseholder’s will see some items removed from their existing service charge bill, as these will be covered by the new standing charge.

Commercial heat network customer must also pay a standing charge, proportionate to the amount of heat they use.

How the charge is set

The standing charge base price has been set to cover the fixed costs of building, operating and maintaining the heat network.

The price is reviewed annually according to Retail Price Index (RPI), the price will therefore change with inflation

Standing charge comparisons

The average estimated standing charge cost for Notting Dale Heat is £1.44/day.

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Standing Charge

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