Gas & Electricity meter charges

NSinclair

I have just discovered today after speaking to a British Gas Customer Service operator that since the 23rd November 2013 ALL the utility companies are charging 26p per day for each gas/electricity meter you have in your home and also (if you have one) your garage. According to her this was sanctioned by Ofgem.

I currently have one gas meter and two electricity meters - one in my house and one in my garage. At 26p per day per meter this works out to 78p per day - a staggering amount of £284.70 per year!

Why on earth has this been introduced as obviously previously they managed to operate (making huge profits) without this.

I wonder how many consumers realize this has been added to their accounts?

Considering the current climate regarding the extremely very high cost of gas and electricity I think this is outrageous.

I would appreciate it if someone would investigate this and also any comments.

Bluebirdman_of_Alcathays

NSinclair wrote: »

I have just discovered today after speaking to a British Gas Customer Service operator that since the 23rd November 2013 ALL the utility companies are charging 26p per day for each gas/electricity meter you have in your home and also (if you have one) your garage. According to her this was sanctioned by Ofgem.

I currently have one gas meter and two electricity meters - one in my house and one in my garage. At 26p per day per meter this works out to 78p per day - a staggering amount of £284.70 per year!

Why on earth has this been introduced as obviously previously they managed to operate (making huge profits) without this.

I wonder how many consumers realize this has been added to their accounts?

Considering the current climate regarding the extremely very high cost of gas and electricity I think this is outrageous.

I would appreciate it if someone would investigate this and also any comments.

There was previously a standing charge, however it was sculpted into the tier 1 charge, ie. the first x units used to cost far more.

Whilst OFGEM have created this with their lack of foresight, unless you are a very (very) low user, the cost to the consumer has been negligible.

aleph_0

NSinclair wrote: »

I have just discovered today after speaking to a British Gas Customer Service operator that since the 23rd November 2013 ALL the utility companies are charging 26p per day for each gas/electricity meter you have in your home and also (if you have one) your garage. According to her this was sanctioned by Ofgem.

I currently have one gas meter and two electricity meters - one in my house and one in my garage. At 26p per day per meter this works out to 78p per day - a staggering amount of £284.70 per year!

Why on earth has this been introduced as obviously previously they managed to operate (making huge profits) without this.

I wonder how many consumers realize this has been added to their accounts?

Considering the current climate regarding the extremely very high cost of gas and electricity I think this is outrageous.

I would appreciate it if someone would investigate this and also any comments.

Yes, it's called a standing charge. It's meant to pay towards the infrastructure and maintaining meters, regardless of how much gas/electricity pass through it.

What previously happened was that providers could have a two-tier tariff, with the first so-many units at a higher rate, and then the rest at a lower rate (so, essentially, if your usage was low enough, you would pay a lower standing charge).

But Ofgem decided this was too complicated, because the standing charge was 'hidden', so providers were limited to charging a fixed standing charge + one per unit rate, and also limited to only offering a few tariffs.

Providers can offer a no standing charge tariff, but the unit price would end up being quite high, and since they can only offer a few tariffs, none of the big 6 chose to do so. Ebico do, if your usage is low, they might suit you.

If your usage isn't low, you're probably paying the same as before, it's just that the standing charge is now explicit.

Although I do wonder why you have two electricity meters for your property. Most people only have one. *If* you are being charged two standing charges, it might be worth seeing if you can get the whole house moved to one supply/meter.

footyguy

NSinclair wrote: »

I have just discovered today after speaking to a British Gas Customer Service operator that since the 23rd November 2013 ALL the utility companies are charging 26p per day for each gas/electricity meter you have in your home and also (if you have one) your garage. According to her this was sanctioned by Ofgem.

I currently have one gas meter and two electricity meters - one in my house and one in my garage. At 26p per day per meter this works out to 78p per day - a staggering amount of £284.70 per year!

Why on earth has this been introduced as obviously previously they managed to operate (making huge profits) without this.

I wonder how many consumers realize this has been added to their accounts?

Considering the current climate regarding the extremely very high cost of gas and electricity I think this is outrageous.

I would appreciate it if someone would investigate this and also any comments.

Use a comparison site
http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity

Look at various tariffs that may interest you ... and then you will see just how wrong you are

Not sure why you have 2 separate electricity meters. :huh:
(unless your garage is located elsewhere to your house)

How many consumers realise the change to standing charges? Well all those that read their mail about it. Add to that all those who didn't bother but do regularly check their bills...

So probably just those that ignore all communication from their supplier and relay on social media sites and internet forums as the sole source to obtain their information. :cool:

Ilona

I had a letter from BG telling me about the standing charges that were being introduced. I am a low user so I changed to Ebico. Now my bills are very similar to what I was paying BG. You must read the mail which comes through the door.
Ilona

MorbidX

Standardized standing charges were brought in as the cost of maintaining and servicing the meter in each area is different and not standardized across the country.
Ofgem ruled to be fair to customers and energy suppliers the charges need to be unified across the country.
It also simplifies tariffs and charges for all involved as its a flat rate

joncombe

MorbidX wrote: »

Standardized standing charges were brought in as the cost of maintaining and servicing the meter in each area is different and not standardized across the country.

Except they are not standardised. They vary by quite a wide margin between different suppliers and even different tariffs of the same supplier for the same address. So there are still two prices to compare (unit price and standing charge), so the new system is no simpler.