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What are standing charges - and what else does OVO charge for?

Standing charges go towards covering the cost of the pipes and power lines that carry gas and electricity to your home. A little is also taken from your unit rates.

Video: Matt here explains how the standing charge worked historically

Standing charge 

What is this?

A standing charge is a daily fixed charge that goes towards the cost of supplying services to your address. It includes the cost of the pipes and power lines, and maintenance of your meters. You pay your standing charge no matter how much energy you use.

If you’re an OVO PAYG customer, you pay your standing charge from your meter each morning – the times can vary according to your type of meter. This money will still be taken even if you’re not actually using any electricity or gas, so you’ll see your balance fall by the same amount each day to cover your standing charge. 

In January 2016, we dropped our standing charge for OVO PAYG customers to £85 a year (per fuel) because our customers told us it was previously too high. As this amount doesn’t completely cover the cost of the pipes, power lines and maintenance of your meters, we take a little money from your unit rates. 

Why do we charge it? 

Because we use a standing charge, we don’t have to use structured unit prices like other suppliers do. We believe our way is honest, transparent and much simpler.

Unit rate 

What is it? 

This is the amount you pay for energy. You can see the unit rate you pay in your welcome letter, and in My OVO.

Why do we charge it?  

It pays for your energy. 
A little also goes towards the cost of supplying services to your address and the maintenance of your meters (most, however, is paid through your standing charge).

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