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Standing Charge vs No Standing Charge
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# 1
danadanny
Old 24-04-2007, 2:08 PM
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Default Standing Charge vs No Standing Charge

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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# 2
tripled
Old 24-04-2007, 2:47 PM
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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.
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# 3
Ken68
Old 24-04-2007, 4:20 PM
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With all the complaints against the bigger companies, it won't be long before all tariffs are EBICO style.
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# 4
BexTech
Old 25-04-2007, 2:20 AM
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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.
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# 5
Cardew
Old 25-04-2007, 7:48 AM
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Quote:
Originally Posted by BexTech View Post
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.
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# 6
Krad
Old 03-07-2009, 5:12 PM
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So would it be better on a standing charge if you spend a lot on electricity?
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# 7
Vestra
Old 03-07-2009, 5:27 PM
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Doesn't really make a difference once you use the first tier units.
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# 8
KimYeovil
Old 03-07-2009, 5:31 PM
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Quote:
Originally Posted by Krad View Post
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.)
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# 9
KimYeovil
Old 03-07-2009, 5:37 PM
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Quote:
Originally Posted by Ken68 View Post
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.
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# 10
Ken68
Old 04-07-2009, 9:00 AM
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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.
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# 11
Cardew
Old 04-07-2009, 11:33 AM
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Quote:
Originally Posted by Ken68 View Post
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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# 12
Ken68
Old 04-07-2009, 11:57 AM
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You could be right Cardew, but sad that so many consumers, especially older folk find the whole billing system of the energy customer so confusing.
Time to simplify whatever.
PS....the biggest 'hidden' cost is the comparison sites, NEEDED, to make sense of it all. Think of the millions saved if bills were unit costed.

Last edited by Ken68; 04-07-2009 at 12:03 PM.
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# 13
Arran83
Old 28-02-2010, 10:15 AM
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I am sorry to bring this thread back from the dead, but rather that than create a new one with the same questions...

So I am a single man, I have just bought my first 2 bed apartment, it is a new build with an Energy Rating of B...
It is also a 1st floor so I have an apartment below me, and one above me... So hoping for some residual heat coming through....

I am well up for seeing how little I can spend on utilities and everything else, infact I love the challenge of reducing as far as I can... I have been brought up in a large house where the boiler has never been man enough to heat the place fully, and would always take 3 hours to get anywhere close...

So I have learnt to put on an extra layer, and I have a bit of a threshold for the cold...

So I will only ever be using the heating when I REALLY need to, and as for electricity I intend to use as little of that as possible...

So would I be better of going for a tariff with a standing charge but less pennies for the units... Or would I be better off going for something without the standing charge but more pennies per unit? From what I have read in this thread I may be better of without a standing charge but I'd love some reassurance if possible...

Thanks
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# 14
KimYeovil
Old 28-02-2010, 10:25 AM
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Quote:
Originally Posted by Arran83 View Post
[...]
So would I be better of going for a tariff with a standing charge but less pennies for the units... Or would I be better off going for something without the standing charge but more pennies per unit? From what I have read in this thread I may be better of without a standing charge but I'd love some reassurance if possible...

Thanks
You have misread. The preference for a two-tier no standing charge tariff is only when choosing between the no standing charge and the daily standing charge versions of the SAME tariff from the SAME supplier.

When deciding between two different tariffs from the same supplier or between tariffs from different suppliers the SC /NSC is irrelevant - some very cheap tariffs are available in only a standing charge version and this could still work out cheaper.
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# 15
Arran83
Old 28-02-2010, 11:05 AM
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Oh right I see,

I think I have misunderstood the billing in its entirety...

I thought the the 1st tier was what you'd pay until you'd used a certain amount, and then it'd switch to the 2nd tier.. So you'd be paying, what you wouldn't have paid in standing charge with the 1st tier's unit cost... I am new to all of this

So now I definitely don't know who to go for, it is really a toss up between Npower and Scottish Power... Scottish Power at least allow me to put in an address if their system can't find it via postcode, Npower don't seem to allow it so I'd have to ring and possibly lose the cashback opportunity from Quidco...
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# 16
KimYeovil
Old 28-02-2010, 11:33 AM
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Quote:
Originally Posted by Arran83 View Post
I think I have misunderstood the billing in its entirety...

I thought the the 1st tier was what you'd pay until you'd used a certain amount, and then it'd switch to the 2nd tier.. So you'd be paying, what you wouldn't have paid in standing charge with the 1st tier's unit cost... I am new to all of this
No, that is entirely correct. And the tier 1 cap resets each quarter - unused tier 1 units will not be added to next quarter's bill.

What you are not understanding is the difference between COMPLETELY DIFFERENT tariffs. I repeat - with the standing charge and no standing charge versions of the SAME tariff you should choose the no standing charge version. When comparing COMPLETELY DIFFERENT tariffs all hats are up in the air - a standing charge tariff can be cheaper.

Last edited by KimYeovil; 28-02-2010 at 11:36 AM.
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# 17
frugalmacdugal
Old 28-02-2010, 11:41 AM
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Hi,

no standing charge is ideal if you have a holiday house in the Highlands, and only use it about 3 weeks a year,
Y'all take care now.
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# 18
Arran83
Old 28-02-2010, 11:48 AM
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Thank you both,

I understand now
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# 19
markharding557
Old 28-02-2010, 4:25 PM
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Quote:
Originally Posted by KimYeovil View Post
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.
How is one simple unit charge obfuscatory?
This is much simpler to understand than tariffs where you have different rates,in some cases seasonal adjustments and various discounts to be applied.

So i would say it is many of the other tariffs which seek to confuse the consumer
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# 20
KimYeovil
Old 28-02-2010, 6:02 PM
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Most suppliers charge a capped flat rate standing charge of between 102 and 175 per year dual fuel.

Ebico charges uncapped unlimited standing charges - about 430 per year for the average consumer.

Are Ebico upfront with this standing charge? No, they obfuscate it with their 'equitable' pricing. And their advocates make nonsensical claims about there being no standing charges - they have the most expensive standing charges of any supplier.
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