What is a typical business gas standing charge?

Gas standing charges for business premises are usually within a similar range to electricity, though often slightly lower, and depend on region, meter type, supplier and contract terms at the time of quoting.

Is the gas standing charge the same across the UK?

No, it varies by region due to differences in local pipeline network costs, as well as by supplier and meter type, so businesses in different areas can see different standing charges even with similar consumption.

What is a capacity charge on a gas bill?

A capacity charge applies to larger gas users and reflects the maximum rate at which gas can be drawn from the network, separate from the standard standing charge. It is a fixed cost based on the agreed capacity level rather than actual consumption.

Would a no-standing-charge gas tariff suit a seasonal business?

It could, particularly if the premises uses gas for only part of the year, since the saved standing charge during low-use periods may outweigh the higher unit rate. Calculating the total annual cost under both tariff types is the best way to confirm this.

Business Gas Standing Charge

Business Gas Standing Charges

The business gas standing charge is a fixed daily fee applied regardless of consumption, covering pipeline infrastructure, metering and a share of the supplier's operating costs. It appears on the bill alongside the unit rate charged per kWh of gas used.

This page looks specifically at the gas standing charge, how it compares to electricity, and the trade-offs of choosing a no-standing-charge gas tariff.

Gas standing charges are generally lower in range than electricity standing charges

Charges vary by region, meter type and supplier

No-standing-charge gas tariffs shift the cost into a higher unit rate

Larger gas users with capacity charges may see additional fixed costs beyond the standing charge

What the gas standing charge covers

The gas standing charge contributes to the fixed cost of maintaining the pipeline network connecting a business to the wider gas transmission and distribution system, along with metering and administrative costs. These costs apply regardless of how much gas is used, which is why they are charged as a daily fixed fee rather than purely through the unit rate.

How it compares with electricity standing charges

Gas standing charges are typically within a similar but sometimes narrower range than electricity standing charges, reflecting differences in the underlying network infrastructure. Businesses with both electricity and gas supply should expect two separate standing charges on their combined energy costs, calculated independently.

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No-standing-charge gas tariffs

As with electricity, some suppliers offer gas tariffs without a standing charge, recovering the equivalent cost through a higher unit rate. This can suit premises with very low or seasonal gas use, such as a site only heated for part of the year, but is usually less cost-effective for businesses with regular, higher gas consumption.

Capacity charges for larger gas users

Larger gas consumers may also face a capacity charge in addition to the standing charge, reflecting the maximum rate at which gas can be drawn from the network at any one time. This is separate from the standing charge and should be reviewed as part of the total fixed cost when comparing quotes for higher-consumption sites.