The heat tariff you’re charged is made up of various components, which are outlined here:
Gas unit charges: Gas is supplied to the plant room to create heat, which is a cost that we pay and then recharges to customers through the heat tariff. This is shown on your bill as heat/hot water and is charged at a p/kWh rate detailed in your tariff review letter.
Gas standing charge: This is the standing charge we pay for the gas supplied to the plantroom. This a cost split between all homes supplied on a heat network. This forms part of the heat standing charge.
Metering and billing agent fees: The installation and maintenance of heat metering equipment, as well as the administration and management of the heat network billing service, is provided by a metering and billing agent. This service is essential to the management of our heat network. We pay these costs and then recharge them to our customers through the heat tariff.
These show on your Switch2 bill separately as Heat Standing Charge and Administration Standing Charge. They are charged at a p/day rate detailed in your heat tariff review letter.
VAT: Utilities are typically charged to residential properties with 5% VAT, included in both unit cost and standing charge. Metering and billing agent fees (administration standing charges) are charged at 20% VAT.