Standing Charge Abuse

SteveJB58

Having just looked at the tariffs on offer from E-On, I am very angry to see them using the standing charge as a means of generating extra money. Given the standing charge is SUPPOSED to cover the overheads of getting the gas to your house, why is it different for each tariff? To give one example: gas SC on standard tariff is 25.82p per day - on Fix2year it is 32.393. Quite frankly, this is outrageous, has been known about (as a simple internet search reveals) for at least 5 years and needs to be stopped.

wavelets

SteveJB58 wrote: »

Having just looked at the tariffs on offer from E-On, I am very angry to see them using the standing charge as a means of generating extra money. Given the standing charge is SUPPOSED to cover the overheads of getting the gas to your house, why is it different for each tariff? To give one example: gas SC on standard tariff is 25.82p per day - on Fix2year it is 32.393. Quite frankly, this is outrageous, has been known about (as a simple internet search reveals) for at least 5 years and needs to be stopped.

:rotfl:

There are tariffs with zero standing charge. Does that mean I have to arrange my own delivery of the gas to my home? :cool:

Surely all that matters is the overall cost.

Consult a comparsison site to find the best deal for you.

Robin9

What is important is not the Standing Charge or the Unit Rate but the combination of the two.

BodyOfBones

Move to another provider.

Have you complained to EON about this?

What does OFGEM say about this matter?

You could always start a Petition to Parliament to get them to change it.

Bansky

SteveJB58 wrote: »

Having just looked at the tariffs on offer from E-On, I am very angry to see them using the standing charge as a means of generating extra money. Given the standing charge is SUPPOSED to cover the overheads of getting the gas to your house, why is it different for each tariff? To give one example: gas SC on standard tariff is 25.82p per day - on Fix2year it is 32.393. Quite frankly, this is outrageous, has been known about (as a simple internet search reveals) for at least 5 years and needs to be stopped.

So just under £24 a year or £2 per month?

Is the saving on the fixed tariff more than that or not is the question.

Cardew

The costs associated with getting gas/electricity to premises are just another overhead - like salaries, meter reading, accounts tax etc - for the energy compnay to take into account in their tariff pricing structure.


If, as you appear to advocate, the Daily Standing Charge(DSC)should cover actual costs, how would you reconcile the different costs involved in getting a supply to different properties. e.g. a terraced house with no front garden a few feet from the main supply or a house a couple of hundred yards from a mains supply. Should they each pay a different DSC?


The idea of competition in the Energy sector is to allow companies to offer customers a 'package' for each tariff. That package has variables - gas/electricity price, DSC, discounts, incentives, leaving penalties etc.

JJ_Egan

I prefer SC to the old method of charging more for the first XX used .

[Deleted User]

Bansky wrote: »

So just under £24 a year or £2 per month?

Is the saving on the fixed tariff more than that or not is the question.

Sorry but your maths is incorrect

25.82p per day x 365 days = £94.243
32.393p per day x 365 days = £118.23445

So quite a bit more in reality.

wavelets

JJ_Egan wrote: »

I prefer SC to the old method of charging more for the first XX used .

Can I ask why?

Under the old method, you would not usually ever pay any more than the standing charge, but low users (or those that use low amounts at certain times of the year, e.g. gas) would benefit.

i.e. the addition of the premiums on unit charge up to the first XX would equal the standing charge that would otherwise apply; use less than XX and you effectively pay a lower standing charge.

As this is supposed to be a moneysaving site, then moneysavers would usually prefer the 2 tier method of charging.

Cardew

wavelets wrote: »

Can I ask why?

Under the old method, you would not usually ever pay any more than the standing charge, but low users (or those that use low amounts at certain times of the year, e.g. gas) would benefit.

i.e. the addition of the premiums on unit charge up to the first XX would equal the standing charge that would otherwise apply; use less than XX and you effectively pay a lower standing charge.

As this is supposed to be a moneysaving site, then moneysavers would usually prefer the 2 tier method of charging.

But very low users can be better off with a Zero DSC

matelodave

As I use quite a lot of leccy, I am happy to pay a higher standing charge to offset lower kwh charges.

An extra 1p/kwh equates to a £72p/a increase for me whereas even 10p a day extra on the standing charge is only £36.50p/a so I'm much better off.

AS said above you need to do your sums to work out which tariff works best for your annual consumption.