ECONOMICS

Detailed explanation-1: -What Does Standing Charges Mean? Standing charges are fixed amounts that are applied to gas and electricity bills. The standing charge helps the supplier to cover fixed costs, which include the provision of a meter and connection to the network.

Detailed explanation-2: -What’s a standing charge? A standing charge is a fixed daily amount you have to pay for energy, no matter how much you use. It even applies to properties that are empty for part of the year – a holiday home, for example. It’s added to most gas and electricity bills.

Detailed explanation-3: -Standing charges are a combination of the fixed charges associated with providing electricity and gas network services and a share of the supply costs in servicing your account. They may vary by supplier.

Detailed explanation-4: -Fixed charges, sometimes known as fixed costs or fixed expenses, are business expenses that occur periodically and are independent of the operational tempo of the business.

Detailed explanation-5: -Standing charges are fixed expenses which do not vary with the use of machine. Examples of standing charges are rent, rates, lighting, insurance, etc. Machine expenses are variable expenses which vary with running of machines, such as depreciation, repairs, power, maintenance, etc.