Standing Charge/No Standing Charge

crankup

I had my first look at a price comparison tonight. Of the list offered, a few listed a price with "No Standing Charge" and it said that there was no standing charge for southern region. Scottish Power was one that had a price with No Standing Charge and also one with Standing Charge prices. The saving for both was apparently the same.

So it got me wondering,
1. Will there be additional standing charge costs to another company after I switch?

2. Should I be looking for No Standing Charge or not, when they are both offered with no difference?


Checking the figures is the easy bit - the text needs decyphering (for me at least!)
Thanks!

MarkyMarkD

The "no standing charge" tariffs are a gimmick. They all work by spreading the standing charge over the first (not very many) units.

So instead of paying £50 per year + 6p per unit, you pay £0 per year + 8p per unit for the first 2,500 units and 6p per unit thereafter.

As nearly everybody uses at least 2,500 units, it makes no difference.

But it sounds good to people who worry about "rip-off" standing charges.

The only people who really benefit are those with second homes who leave them empty most of the year - and why should they save money???

riad_2

How much leccy would people say an average fridge-freezer uses up?

I wonder if it uses up the 225 Kwh/quarter (or approx £33/quarter) which seems to be the average standing charge for most sc tariffs.

Oh also... for Economy 7 customers on "no standing charge" tariffs... are the first 225 Kwh of leccy which are charged at a higher rate for Day/Normal Rate electricity only?

LadFromWales85

Users on 'no standing charge' tariffs with E7, the first 225kWh is only counted on day use. All of night use is at a set rate.
Modern fridge freezers apparently use around 350kWh a year, or around £35

Ken68

The only true no standing tariff I know of is Ebico at 9.32pence Eastern region which includes vat. The rest have the standing charge 'hidden' either in so much for the first 225kwh(or whatever) or so much a day.
I would be interested to know of other providers doing it straight.

MarkyMarkD

But "doing it straight" is pants, as it means that the unit rate is that much higher for all units than it would otherwise be, and every bit of incremental energy usage is very expensive.

Terrylw1

Marky is right.

When Suppliers went down the "ban standing charge" route, they just introduced consumption blocks. Works exactly the same as the mobile prepay deals where you get ripped off for the 1st 3 minutes until you hit the cheap rate.

This was always very popular on business tariffs years ago, so they tried it on residential supplies.

Basically, it's just a way to make you think you are getting a better deal.

Standing charge was always a way to make a fixed income from those who leave properties empty e.g. landlords, business properties not in use, holiday homes etc.

So, you have to decide why you are buying the property. If its going to be a holiday home, you will be better of on no standing charge.

For a normal user though, it can make little difference because they make their money back out of the blocks they use.

Best thing you can do is check on what the first block units and prices are as well as the 2nd block. Then do your sums and work out whether you are better off that way or with a flat standing charge.

far

Just to confirm this, we switched our electricity recently to Scottish Power and I produced a little spreadsheet to compare the Standing Charge and No Standing Charge prices. The difference between the 2 options was the sum total of 1p per year :rotfl:

Pixie28

far wrote: »

Just to confirm this, we switched our electricity recently to Scottish Power and I produced a little spreadsheet to compare the Standing Charge and No Standing Charge prices. The difference between the 2 options was the sum total of 1p per year :rotfl:

Wow I would definitely go for it then! A penny is a penny after all!:rolleyes:

riad_2

far wrote: »

Just to confirm this, we switched our electricity recently to Scottish Power and I produced a little spreadsheet to compare the Standing Charge and No Standing Charge prices. The difference between the 2 options was the sum total of 1p per year :rotfl:

YAY!!:T

You didn't tell us which one was the 1p cheaper though... SC or NSC? :rotfl:

far

riad wrote: »

YAY!!:T

You didn't tell us which one was the 1p cheaper though... SC or NSC? :rotfl:

It was the Standing Charge Option! :beer: