Standing Charges hike - Southern

glottalstop

I get my gas from Southern Electric, the latest bill shows that standing charges have become a major part of the total.

The rate went up in December 2010 from 25.57p to 27.97p per day (a 9.4% increase).

Tracking back in March 2010 the standing charge went up from 13.36p to 25.57p per day - a whopping 91.4% hike. No explanation.

What is going on !!! The basis of my account hasn't changed and the tariffs dipped but are now roughly the same at 3.2p/unit.

glottalstop

Sorry, I asked a really dull question, or it is old news perhaps.

Is everyone happy that standing charges for gas were hiked from £50 pa to £102 pa in 2010, a big big chunk of the bill. Maybe all the suppliers have done it, I have run comparisons and there does not seem to be anything much cheaper available.

So, I have written to Southern Electric asking why they hiked massively above RPI last year, and without drawing my attention to it. No reply yet.

Do you think it is worth asking Ofgen for an explanation ?

Premier_2

The supplier can set whatever tariff they feel like, and on a variable rate, are free to move prices any time.

If you want to stay with the supplier, but don't like the standing charges, I suggest you ask to go on the Equipower (electricity) and/or Equigas (gas) tariffs. No standing charges and no 2 tier pricing ... and no discounts either.
Gas charged at 3.85p/kWh (exc VAT)

Better still, use a comparison site and see how much you could save yourself by switching to the best available deal.

KimYeovil

Other suppliers charge £170 and more for gas.

It is tiresome but that is the reality of an aggressive free market - it is a very useful tool especially when coupled with leaving penalties.

Note that Ofgem themselves have altered the standard for what the average consumer uses (and what the headline advertised price will be). Reduced the number of units by a bit less than ten percent. So there will be even more hikes in standing charges to recoup this.

glottalstop

I had the stupid idea that this was more tightly regulated. Ofgem clamping one end means a hike somewhere else. As you say, it is now up to us to shop around and get the best out of the market.

Plus an incentive to improve even more on insulation etc. With electric you can use efficient bulbs and turn the lights out, and I can get a more efficient electric heater for the hot water tank. A solid fuel burner to help with heating is quite an investment, not so much in the hearth but in the safe installation of the flue etc.

But you still can't beat cooking with gas.

Plushchris

glottalstop wrote: »

I get my gas from Southern Electric, the latest bill shows that standing charges have become a major part of the total.

The rate went up in December 2010 from 25.57p to 27.97p per day (a 9.4% increase).

Tracking back in March 2010 the standing charge went up from 13.36p to 25.57p per day - a whopping 91.4% hike. No explanation.

What is going on !!! The basis of my account hasn't changed and the tariffs dipped but are now roughly the same at 3.2p/unit.

But you do realise that a hike of 9.4% (or even 91.4%) on your standing charge does not equate to a 9.4% (or 91.4%) price rise on your bills dont you?

glottalstop

Well done Southern Electric and well done me.

Having set out my case in some detail to them, we have agreed a solution today. I think it is arguable how much notice needs to be drawn to price changes, but in my peculiar case where the standing charge suddenly became a large part of the cost for a period between bills, it has been accepted that more attention should have been drawn to the changes.

I ended up dealing with a very nice and sensible person at Southern Electric, so how about that.