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Standing Charges Massive Increase?

Hi All

I'm trying to help my elderly mother with her gas and electricity. She's currently with First Utility and the tariff is due to end shortly. Obviously I expect prices to go up, but the increase in the standing charges is massive. She's currently paying 2.43p a day for Gas and 1.87p for Electric. The rates they are now offering are both over 20p!

Was she just on a very good deal up till now? She has been on this tariff since she switched to FU a few years ago so I wonder if it was one of those opening offers that isn't available to people who are already with them?

The standing charge is important to her as she is very economical with her energy and has only been paying £28 a month for both fuels even though she lives in a 3 bed house, and her account is currently in credit by around £180.

If anyone can throw any light on this it would be much appreciated.

Many Thanks

Loretta

Comments

  • footyguy
    footyguy Posts: 4,157
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    edited 13 February 2016 at 5:27PM
    Loretta63 wrote: »
    Hi All

    I'm trying to help my elderly mother with her gas and electricity. She's currently with First Utility and the tariff is due to end shortly. Obviously I expect prices to go up, but the increase in the standing charges is massive. She's currently paying 2.43p a day for Gas and 1.87p for Electric. The rates they are now offering are both over 20p!

    Was she just on a very good deal up till now? She has been on this tariff since she switched to FU a few years ago so I wonder if it was one of those opening offers that isn't available to people who are already with them?

    The standing charge is important to her as she is very economical with her energy and has only been paying £28 a month for both fuels even though she lives in a 3 bed house, and her account is currently in credit by around £180.

    If anyone can throw any light on this it would be much appreciated.

    Many Thanks

    Loretta

    Consult a comparison site and find the best deal for her.

    It is not really of any importance as to how the tariff is made up, just what will be the cheapest annual cost for her and her usage. :)

    But if she really doesn't care what is the cheapest price, but wants the minimum standing charge tariff, then I know the CEC offer the possibility to just show tariffs with zero standing charge ... and she won't get a cheaper standing charge than that.
  • JJ_Egan
    JJ_Egan Posts: 20,281
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    (She's currently paying 2.43p a day for Gas and 1.87p for Electric. The rates they are now offering are both over 20p!)

    Read more like unit charges than standing charges .
  • Nada666
    Nada666 Posts: 5,004 Forumite
    Yes, the First Utility tariff was an out of the ordinary bargain. If she is such a parsimonious user then she should know that it was unusual and it was unlikely to last. Be happy for the bargain that was there for that time and look around for the best tariffs now. Unfortunately, for low users, the changes in price can be non-trivial and large and it will be frustrating with all the touted bargains being irrelevant to her.

    I've given in. The abolition of two-tier tariffs has caused my gas usage to more than treble.
  • Nada666
    Nada666 Posts: 5,004 Forumite
    JJ_Egan wrote: »
    (She's currently paying 2.43p a day for Gas and 1.87p for Electric. The rates they are now offering are both over 20p!)

    Read more like unit charges than standing charges .
    Where are you getting your electricity for 1.87p per kWh and can we get some? No, First Utility did have such prices (even their Standard tariff had such low standing charges for a bit).
  • matelodave
    matelodave Posts: 9,307
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    Yes, it's a consequence of OFWAT abolishing the two-tier rate.

    My Mum only had a gas hob and used about £3 of gas a year on the two tier rate. That would have gone up to a silly amount unless she'd transferred to someone like Ebico who have a zero standing charge but higher unit rates.

    So all you can do is find the cheapest deal that suites your consumption - unfortunately it means some gain and some lose out. It's always been like it and there's not much you can do about it.
    Never under estimate the power of stupid people in large numbers
  • System
    System Posts: 178,493
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    'Simpler, Clearer and Fairer' says Ofgem. If OFWAT is now involved in energy pricing, we are all doomed.

    That said, the changes to the tariff structure were made some time ago.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • molerat
    molerat Posts: 36,685
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    Hengus wrote: »
    'Simpler, Clearer and Fairer' says Ofgem. If OFWAT is now involved in energy pricing, we are all doomed.

    That said, the changes to the tariff structure were made some time ago.
    Why, could they be any less effective ? :o

    Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.

    Being hated by idiots is the price you pay for not being one of them.

    Jean Cocteau 1889-1963

  • Thanks Everyone. It seems she was on a very good deal and it's now back to the real world!
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