Sainsbury's 62.6% increase in electricity standing charge

Harefield_Trotter

Is this the largest percentage increase seen so far? I have asked Sainsburys for the calculations behind this latest example of profiteering ....no joy so far. Something to hide, I wonder? :mad:

Nada666

Considering that there are many tariffs that used to have a standing charge of zero pence then, no. 62.6% is less than infinity.

You may want to supply a bit more information, such as the name of the tariff at least.

burnleymik

Also, what the original costs were and are now.

Harefield_Trotter

The plan is Sainsbury's Energy Online July 2014.

The old single rate electricity standing charge is 15.34p per day and the new rate is 24.95p per day paying via Direct Debit. New rates apply from 23rd November 2013.

Nada666

So £56 to £91. To be fair £91 is closer to an average standing charge nowadays. You also have to look at two other factors - the complementary gas standing charge (has it also increased or has it decreased to balance the electricity?) - and the direct debit discount which may now be only applied to consumption to penalise low users.

Harefield_Trotter

The gas standing charge has increased by approx. 6% to 24.95p per day if payment is made by direct debit.

The disturbing theme running throughout the whole energy pricing debate is that there is little or no transaprency in terms of how the energy companies arrive at their prices. This is the question that will be posed by the Select Commmittee on Energy and Cimate Change later today. National Grid forecasts for 2013/2104 highlighted at most a potential 28% increase in distribution tariff at a wholesale level with a doubling of tariffs from 2012 through to 2018. So from a personal standpoint, I want to know how the 62.6% increase in my standing charge is reached and justified.

davidgmmafan

Perhaps the rate was artificially low to being with?

You know like all the best buys were before things were 'simplified' so customers who are engaged pay more...

Harefield_Trotter

No mention was made of any introductory offer or advantageous pricing in their marketing nor indeed in the T&Cs of the contract. How can a business justify an increase that is nearly 30 times the rate of inflation? So far it hasn't been able to....

Horseunderwater

Count yourself lucky BGas has gone up from 17p to 26p per day.

Nada666

What are you talking about? It is a variable tariff. Companies continually chop and change the balance of their tariffs both between gas and electricity and between tier 1/standing charges and price per kWh.

Don't worry - if Ofgem have their way suppliers will no longer be able to set their own standing charges - everyone will be forced to charge you 86p per day just to be connected to the grids. (£26 per month).

Harefield_Trotter

Your Bgas tariff is up by 52-ish % so I'm ahead of you on that one sadly.