How Is The Daily Standing Charge Calculated?
The daily standing charge (shown either on your bill or your pay-as-you-go unit), includes the costs that your Management Company has to pay… in order to get the heat to your home – whether you use it or not. These costs typically include the standing charges that the heat supplier has to pay their utility provider (e.g. a gas company) for the gas supply, plus the costs incurred by pumping the hot water around the heat network.
When looking at the charges applied to you via a tariff and standing charge, it is useful to consider that even if no one at your development used any heating or hot water, your heat supplier would still have the same fixed costs from their bulk energy supplier. Therefore, your heat supplier has to recover the costs of getting heating and hot water to each home via a set daily standing charge.