What is a business electricity standing charge and what is in it?

A business electricity standing charge is a fixed daily supply charge, separate from the energy you use. Network and capacity costs may be bundled into it or itemised separately. NESO describes 4 main system charge types [S3]. Check your contract and bill together before deciding which costs lower consumption can reduce. Checked October 2026.

Last checked 17 October 2026

What is the standing charge on your business electricity bill?

Start with the daily charge in your supply contract. It is separate from the unit rate applied to consumption. Ofgem distinguishes standing charges and unit rates when describing fixed business contracts [S1]. Ask for the schedule of included costs before assuming the label explains everything you pay.

A kilowatt-hour (kWh) measures energy; a kilowatt (kW) measures power. Your unit charge follows energy consumption. A daily charge follows the billing period. Keeping these separate helps explain why a quiet month can still carry a substantial bill. For the wider context, start at the business electricity prices hub.

Use the invoice alongside the signed schedule. Highlight each charge that you cannot trace to a rate, quantity and period. Request that breakdown in writing. This is a bill-reading exercise: it does not require choosing a different supplier or predicting future electricity prices.

Are DUoS, TNUoS and capacity charges the same thing?

Distribution Use of System (DUoS) concerns the local distribution network. Its charging headings include fixed, energy and capacity elements [S2]. Your distribution network operator (DNO) runs the local wires; your supplier holds the retail supply contract.

Transmission Network Use of System (TNUoS) recovers transmission infrastructure costs. NESO also distinguishes balancing, connection and assistance charges within its system charging explanation [S3]. These costs enter the supply chain; the retail contract determines how your invoice presents them.

The distribution headings above follow the network’s published calculator [S2]. The transmission residual includes fixed daily charges allocated through bands [S4]. Do not add a network estimate to a supplier standing charge until the supplier confirms that the cost is excluded from its quoted figure.

Why do meter type and business size change the picture?

The distribution calculator asks for half-hourly or non-half-hourly status, network area, capacity and annual units [S2]. Half-hourly means energy records for each half-hour. Request the details recorded against your meter point rather than inferring them from the size of the building.

DESNZ publishes non-domestic prices by consumption size band, with versions including and excluding Climate Change Levy (CCL) [S6]. Use the size-band selector on the live price data for context. It shows average delivered prices, not a schedule of daily standing charges by meter type. A consumption band is also different from a network residual charging band.

For a small shop, ask whether the supply schedule bundles network costs. For a depot with itemised charges, reconcile each network row separately. A national pence-per-kWh average cannot tell either business whether its particular standing charge is correct. Read half-hourly metering and DUoS when interval data and time bands appear on your paperwork.

How do you calculate the fixed cost on a bill?

Here is an illustration, not a quote. All inputs are assumptions, excluding VAT, CCL and other charges.

If assumed energy use halves, the energy row becomes £1,250. The other rows stay £300, so the subtotal becomes £1,550. That is a £1,250 difference, not half the original bill. Use actual billing days and check whether any item is already included before repeating this calculation.

What can solar, batteries and a capacity review change?

Test changes against the charging basis. Lower imported kWh can reduce charges calculated on those kWh. It does not by itself remove a daily charge. Residual network costs have a fixed charging structure [S4]. Evaluate a proposed project using the solar and battery bill guide.

A capacity reduction is a separate contractual step. The network warns that released capacity may be used elsewhere and that a later increase may involve payment [S5]. Before applying, request a review of long-term demand, including planned chargers, refrigeration and any expansion. Do not choose a lower capacity solely from a summer solar profile.

For renewal, list the charges that are fixed, variable or subject to a review clause. Use how business contracts work and CCL explained to keep contract costs and tax separate. Check contractual obligations with your solicitor and tax treatment with your accountant.

What should you do next?

Collect your invoice, contract schedule, meter-point details and demand history. Use the site check to prepare an installation brief, then get matched with an installer that covers your area.

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