Unit cost reduction not what it seems !

Andy1965

There have been quite a few headlines in the news about price reductions recently. If you watch the news we are told that the companies are delighted in reducing unit costs and passing on the savings to their customers. This seems to be because the wholsale cost to suppliers has decreased.

Initial thoughts for a lot of consumers would be WOW at last a bit of a break. unfortunately this isn't so.

One company makes a big song and dance about reducing their unit cost, with a long explanation, that due to decreased wholesale cost they are now really doing their bit and finally passing on the savings to it's customers, by reducing MARGINALLY the unit cost of energy. What the headlines fail to tell consumers is that the reduction does not take into account that this particular company has also raised it's standing charge considerably, therefore wiping out any saving anyone would have had from a reduced unit cost.

I feel this is really misleading the public by not giving the whole truth or clarity. Yes of course it is good news to many people hearing that the unit cost is being reduced, but I think it unfair, to leave out the fact that the standing charge has been raised.

Wholesale gas costs surely do have a direct influence on the cost of units charged by the supplier. So I understand if wholesale costs decrease it should mean a reduction in unit cost of gas charge to customer ! is there anyone out there that can tell me if the standing charge has anything to do with wholesale energy costs going up or down ? I always thought a standing charge covered the costs of the meter and supply ?

Any clarity would be appreciated. When is a company going to be really truthful and say, yes although we have decreased our unit charges we must also tell you all our standing charges have shot up !

Andy