Fixed Charge
Standing Charge
Network ChargesA 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:
| Band | Agreed Capacity | Description |
|---|---|---|
| NR | No Residual | Minimal fixed charge |
| B1 | 0-20 kVA | Small business |
| B2 | 21-99 kVA | Medium business |
| B3 | 100-499 kVA | Large business |
| B4 | 500+ kVA | Very 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 = £2.64Related terms
Put this into practice
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