Standing Charge vs No Standing Charge

danadanny
danadanny Posts: 57 Forumite
Hi all,

just wondering what is the difference between electric tariffs with standing charge and one with no standing charge?

how should one go about choosing?


thank you
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Comments

  • tripled
    tripled Posts: 2,879
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    Tariffs with a standing charge mean you pay a flat rate charge for the supply as well as for the power you use. Tariffs without a standing charge instead usually build the cost into the unit rate instead instead of neing seperate on your bill, so you pay extra for the first bit of power you use until the standing charge is recouped then the same rate as everyone else. Only Ebico has a true no standing charge tariff where there is one flat rate.

    Basically, unless you are a very low user or your property is frequently vacant for extended periods then it doesn't make much difference.
  • Ken68
    Ken68 Posts: 6,825
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    With all the complaints against the bigger companies, it won't be long before all tariffs are EBICO style.
  • BexTech
    BexTech Posts: 4,772 Forumite
    As said above for most people they work out the same.

    However for us the no standing charge is ideal, as we do spend a lot of time away for extended periods.
    It's PAC not PAC Code, it's MAC not MAC Code, it's PIN not PIN Number, it's ATM not ATM Machine, it's LCD not LCD Display, it's DVD not DVD disc... It's no one not noone, It's a lot not alot, It's got not gotten... Panini is the plural of panino - there is no S!!
    (OK my English isn't great, the sciences, maths & IT are my strong points!)
  • Cardew
    Cardew Posts: 29,036
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    BexTech wrote: »
    However for us the no standing charge is ideal, as we do spend a lot of time away for extended periods.

    Likewise for myself with a little used annex.

    The majority of people with gas do not use Economy 7 electricity. However some who do, simply switch off the gas boiler and pilot light for the summer months and heat water with their immersion heater at E7 rates.
  • Krad_2
    Krad_2 Posts: 16 Forumite
    So would it be better on a standing charge if you spend a lot on electricity?
  • Vestra
    Vestra Posts: 856 Forumite
    Doesn't really make a difference once you use the first tier units.
  • KimYeovil
    KimYeovil Posts: 6,156
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    Krad wrote: »
    So would it be better on a standing charge if you spend a lot on electricity?

    No. It is the same (within pennies) with most suppliers. There is no advantage to taking a tariff with a standing charge. Unless you never go on holiday you will lose out.

    (Usual caveat - this is where tariffs are offered with a no standing charge and no standing charge options. There may well be separate tariffs only available with a standing charge that are cheaper.)
  • KimYeovil
    KimYeovil Posts: 6,156
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    Ken68 wrote: »
    With all the complaints against the bigger companies, it won't be long before all tariffs are EBICO style.

    Surely the noises issuing from authorities suggest that it is Ebico's tariff with its Tier 1-only prices that will be banned? They are more obfuscatory than others.
  • Ken68
    Ken68 Posts: 6,825
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    It's more likely, Kim, that standing charges will be banned, after all what other trade has them showing.
    It's an anomaly of the energy companies and smacks of collusion in the first place.
    Don't think BG et al will be phased if it goes against them, they will just call it something different or invent new contracts.
  • Cardew
    Cardew Posts: 29,036
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    Ken68 wrote: »
    It's more likely, Kim, that standing charges will be banned, after all what other trade has them showing.
    It's an anomaly of the energy companies and smacks of collusion in the first place.
    Don't think BG et al will be phased if it goes against them, they will just call it something different or invent new contracts.

    Ken,
    There are 'standing charges' for all manner of services.

    You pay a standing charge for water and sewerage.

    You pay a 'standing charge' for your telephone - called line rental!

    You often pay a 'delivery charge' for goods.

    It costs £xx for a company to supply gas and electricity to any property before anything is used.

    Much as we all admire the ethos of Ebico, those with higher consumption provide a cross-subsidy to low users.
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