Why Primary & Seconary Units?

Premier_2

Dustykitten wrote: »

I understand the concept of the standing charges and low users being better off potentially on a non SC tariff.

For other users is the cost just about the same which ever way you go about it?

You need to check each individual suppliers tariffs.

I know when BG first removed their standing charge many years ago, the effect of two tier prices meant that worst case a customer was limited to paying the previous standing charge. If in any quarter, usage was less than the tier 1 limit, then the customer would actually save money.

The same applied to Scottish Power when I compared their SC and NSC tariffs so it was a no brainer to choose the NSC tariff.

Both of these situations may now have changed so you will need to check carefully.

Mikeinho

Hmmm... still unconvinced by ANY argument supporting either standing charges or primary/secondary units.

Even if you accept the 'for' argument, then the following logic would have to apply: a household situated in a remote area has higher overheads to continually supply energy to than a household situated on the outskirts of a major city close to an energy production plant; therefore the standing charges (or primary/secondary units method) should also vary.

It doesn't add up, and the only fair way I can see to even things up would be to introduce a single unit charge for all customers on the same contract & price-plan. It would then be upto the energy companies to decide what price-plan they offer in line with how much it costs them to provide the supply.

Interesting point about the Italian's... putting Socialism to work indeed. Those who can afford to pay more, simply PAY MORE!! (here here)

SwanJon

Mikeinho wrote: »

Even if you accept the 'for' argument, then the following logic would have to apply: a household situated in a remote area has higher overheads to continually supply energy to than a household situated on the outskirts of a major city close to an energy production plant; therefore the standing charges (or primary/secondary units method) should also vary.

To some degree this does happen. Electricity is lost when transported, so you need to generate more if it is going to travel long distances for the same end result.
Compare prices in differerent regions, highly populated small regions like London & Seeboard with larger sparsly populated regions like Hydro & Swalec
(PS not actually looked in a while so I'm prepared to be proven wrong.)