The Standing Charge: A Simple Guide for Sub-Metering

The Standing Charge: A Simple Guide for Sub-Metering

In the world of prepayment electricity, you’ll often hear the term "Standing Charge." For many tenants and even some landlords, it can be a point of confusion. Here is a quick breakdown of what it is, where the money goes, and how it’s managed through the Topupmeters platform.

1. Overview: What is a Standing Charge?

The standing charge is a fixed daily fee for having the meter and maintaining the connection. Unlike the "unit rate," which changes based on how much energy is used, the standing charge remains the same every day—even if no electricity is consumed. It covers the cost of operating the meter and the supply infrastructure.

2. Who is it for?

It is important to understand the flow of these funds:

• Paid by the Tenant: The charge is automatically deducted from the tenant’s balance on a daily basis.
• Received by the Landlord: These funds are collected and passed back to the landlord (the secondary account holder).
• Not kept by Topupmeters: We provide the technology to facilitate the payment, but Topupmeters does not keep the standing charge. It ensures the landlord is not left out of pocket for the fixed costs of the building's supply.

3. Staying Compliant: The OFGEM Guidance

When reselling electricity, landlords must follow specific pricing rules. According to OFGEM Guidance on the resale of electricity:

"If the reseller (landlord) pays a standing charge this must be divided pro-rata amongst the purchasers."

In your setup, the "purchasers" are the tenants using the Topupmeters installed downstream of your main billing meter. By dividing your primary supplier's standing charge across your sub-meters, you ensure a fair and legal distribution of costs.

4. How is it Set?

One of the key benefits of using Topupmeters is the ease of management. Landlords can set or adjust the standing charge remotely via our online web portal. When calculating the rate, landlords typically look at:

1. The Pro-Rata Share: The portion of the main supplier's standing charge allocated to that specific meter.
2. Service Recoupment: An amount to cover the cost of the metering equipment and the ongoing management services.

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