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Fixed Charge

Standing Charge

Network Charges

A daily charge applied to every electricity supply point regardless of how much electricity you use - think of it as a "line rental" for your connection to the network.

The fixed charge is a standing daily fee that covers the basic costs of maintaining your connection to the electricity network. You pay this charge every day, whether you use 1 kWh or 10,000 kWh of electricity.

How fixed charges are calculated:

  • Charged in pence per MPAN per day (p/MPAN/day)
  • Applied to every billing day in your period
  • Varies by DNO region and tariff category
  • Typically ranges from 1-10 p/day for domestic to 50+ p/day for larger supplies

Fixed charge bands under CDCM:

BandAgreed CapacityDescription
NRNo ResidualMinimal fixed charge
B10-20 kVASmall business
B221-99 kVAMedium business
B3100-499 kVALarge business
B4500+ kVAVery large business

Common billing errors: Fixed charges are straightforward to validate - simply multiply the daily rate by the number of days in your billing period. Errors typically occur when the wrong tariff category is applied (via incorrect LLFC), leading to the wrong fixed rate being charged.

Example

Fixed Charge: 8.50 p/MPAN/day x 31 days = £2.64

Related terms

Put this into practice

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