Standing Charge where no electricity is used

bob_bank_spanker

jestyenot wrote: »

I am an E.on customer and I would like to ask why are the standing charges different depending which tarif you are on.

I have just recieved a letter from Eon telling me that my current plan, which is the Age UK 1 year fixed V2, is shortly coming to an end. The letter gives details of my current plan and of my New Plan, which would be the E.ON Energy plan and here are the rates it gives.
E.ON energy Plan:-

Electricity
Standing Charge 27.395 Normal Rate 13.493 ech (inc. VAT)

Gas
Standing Charge 27.39 Normal Rate 4.334 each (inc. VAT)

Age UK Fixed 1 year V2

Electricity
Standing Charge 28.94 - Normal Rate 23.052 (inc. VAT)

Gas
Standing Charge 40.139 - Normal Rate 3.90 (inc. Vat)

===============================

Take note of the Standing Charge for gas in the 2 plans.

The Age UK standing charge 11.19 pence.

How can that be right, one would have thought that the Age UK would be a little cheaper because it is designed for people over 65.

Sort of makes nonsense when you say you introduced standing charges to make the bills simpler, I paid more in standing charges this quarter than the gas I used. Also, no-one asked me if I would like to pay standing charges.

I agree that standing charges do absolutely nothing to make the bill simpler, one needs to do a full comparison with their own usage to make a determination on what is best for them. For instance, many businesses are happy to pay a standing charge of £1-2 per day, if the rate (p/KWh) they are getting is low.

Ignore any tariff that dresses itself up to target any particular demographic; arm yourself with your consumption statistics and enter them into a price comparison site.

I entirely fail to see why over 65's should get a cheaper price, however.

zeupater

jestyenot wrote: »

I am an E.on customer and I would like to ask why are the standing charges different depending which tarif you are on.

I have just recieved a letter from Eon telling me that my current plan, which is the Age UK 1 year fixed V2, is shortly coming to an end. The letter gives details of my current plan and of my New Plan, which would be the E.ON Energy plan and here are the rates it gives.
E.ON energy Plan:-

Electricity
Standing Charge 27.395 Normal Rate 13.493 ech (inc. VAT)

Gas
Standing Charge 27.39 Normal Rate 4.334 each (inc. VAT)

Age UK Fixed 1 year V2

Electricity
Standing Charge 28.94 - Normal Rate 23.052 (inc. VAT)

Gas
Standing Charge 40.139 - Normal Rate 3.90 (inc. Vat)

===============================

Take note of the Standing Charge for gas in the 2 plans.

The Age UK standing charge 11.19 pence.

How can that be right, one would have thought that the Age UK would be a little cheaper because it is designed for people over 65.

Sort of makes nonsense when you say you introduced standing charges to make the bills simpler, I paid more in standing charges this quarter than the gas I used. Also, no-one asked me if I would like to pay standing charges.

Hi jestyenot

... that's a really good example of what I was raising in my previous post ... if the standing charge is there to cover the fixed cost elements of maintaining your account & connection then there is absolutely no reason why there would be a difference. The energy sector have been instructed to simplify their tariff offerings and all they've offered up is a solution which suits their own bottom line, but really goes no-way towards simplification as evidenced by the unnecessary complexity caused by different standard charges.

Obviously, the only explanation for the difference is that E.ON are ensuring that they are making a minimum of £51((40.139-27.39)x4) profit from the 'age concern' gas tariff before offering a reduced margin unit price saving 0.434p/kWh (4.334-3.9) - as such the breakeven point would be 11750kWh/year(51/0.00434), so anything above this and you'd be saving, however, if you were to use double this (23500kWh) the saving would only be £51/year over the standard offering ... chances are that someone who uses gas only for heating would have a seasonal usage pattern which would have saved close to this anyway through having at least one low (/no) gas usage quarter therefore saving the equivalent of at least one quarter's standing charge .... that's where Ofgem have screwed up and the energy sector have gained.

Any low energy usage customer is being taken for a ride by their suppliers, just at the time that everyone is being encouraged to become a low energy user through purchasing energy efficiency measures from the very same companies ... the lunatics are definitely being allowed to take over the asylum, with Ofgem happily watching in awe, believing they've done a good turn, because the industry are telling them so ...

HTH
Z

NowRetired

I entirely fail to see why over 65's should get a cheaper price, however.

Next you'll want to take away our bus passes and reduced entry to swimming baths, etc.


You'll change your mind when you get to be 65 or whatever age it is raised to when you retire.

undaunted

Have you ever signed a contract for this property / meter?

If not was it ever supplied through that meter (whilst in your ownership)?

If neither then I fail to see where the contract was formed & suggest you contact a solicitor - it may cost you less to send a letter saying get lost than it does to have a meter removed / re installed.

AndyJ52

I'm glad that I'm not the only one to be utterly bemused as to why the standing charge should vary depending upon which 'deal'/product one opt's for from a particular supplier. I understand that management, admin & other fixed costs might vary between the various suppliers - but to have differing 'fixed' costs, dependent upon tariff, from a single supplier seems quite bizarre.

moneyspendexpert

zeupater wrote: »

Hi jestyenot
chances are that someone who uses gas only for heating would have a seasonal usage pattern..
Z

very interesting post.
without all the detail, it's clear enough that the SC cannot remain fixed and would have to reflect the overall gas usage.

Former_E.ON_Company_Representative:_Malc

jestyenot wrote: »

I am an E.on customer and I would like to ask why are the standing charges different depending which tarif you are on.

I have just recieved a letter from Eon telling me that my current plan, which is the Age UK 1 year fixed V2, is shortly coming to an end. The letter gives details of my current plan and of my New Plan, which would be the E.ON Energy plan and here are the rates it gives.
E.ON energy Plan:-

Electricity
Standing Charge 27.395 Normal Rate 13.493 ech (inc. VAT)

Gas
Standing Charge 27.39 Normal Rate 4.334 each (inc. VAT)

Age UK Fixed 1 year V2

Electricity
Standing Charge 28.94 - Normal Rate 23.052 (inc. VAT)

Gas
Standing Charge 40.139 - Normal Rate 3.90 (inc. Vat)

===============================

Take note of the Standing Charge for gas in the 2 plans.

The Age UK standing charge 11.19 pence.

How can that be right, one would have thought that the Age UK would be a little cheaper because it is designed for people over 65.

Sort of makes nonsense when you say you introduced standing charges to make the bills simpler, I paid more in standing charges this quarter than the gas I used. Also, no-one asked me if I would like to pay standing charges.

Hi jestyenot

The Age UK Fixed 1 Year V2 tariff was only available for a limited period towards the end of last year.

Following the product launch, we continued to take on feedback from customers similar to the points you've raised here. As a result, we simplified our offer and later products reflected these comments.

We're continuing to look at options to further simplify our tariffs and feedback like yours and that from the other posters on this thread is really valuable.

Consequently, I've fed both your comments and those of the other posters back to our Pricing guys. Thanks for the input all, it's really useful.

Malc

Cardew

jestyenot wrote: »

Electricity
Standing Charge 27.395 Normal Rate 13.493 ech (inc. VAT)

Gas
Standing Charge 27.39 Normal Rate 4.334 each (inc. VAT)

Age UK Fixed 1 year V2

Electricity
Standing Charge 28.94 - Normal Rate 23.052 (inc. VAT)

Gas
Standing Charge 40.139 - Normal Rate 3.90 (inc. Vat)

===============================

Take note of the Standing Charge for gas in the 2 plans.

The Age UK standing charge 11.19 pence.

How can that be right, one would have thought that the Age UK would be a little cheaper because it is designed for people over 65.

Sort of makes nonsense when you say you introduced standing charges to make the bills simpler, I paid more in standing charges this quarter than the gas I used. Also, no-one asked me if I would like to pay standing charges.

Surely the 'Normal Rate 23.052 (inc. VAT)' is a typo?

Former_E.ON_Company_Representative:_Malc

Good spot Cardew. I'd missed that.

Yes, definite typo, should be 13.052p on that particular tariff.

Malc