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Cheapest gas standing charge?

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  • rebel_2
    rebel_2 Posts: 124 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    rebel_2 said:
    Verdigris said:
    The distribution cost is known. That's why it varies by area. Retail suppliers choose whether to charge more or less than the cost to them. It is a commercial decision.
    It's not really a 'commercial decision', I'd like to know exactly what I'm paying for, I'd expect them to be upfront. I'd have to track back, maybe Internet Archive, but the 'standing charge' was 4p / 5p. There isn't a clear understanding of the cost for the consumer.  
    It is a commercial decision though isn't it. There is no need/obligation for them to be upfront about what makes up the standing charge, just like there is no breakdown of what your mobile phone monthly payment  exactly covers, or your ISP monthly charge for your internet.
    Its very easy, a percentage of the standing charge is for metering obligation, some for contibution towards infrastructure and some will be for your providers running costs and  their profit margin. The companies vary the standing charge depending on tariff and often use it as a bargaining chip for reducing or increasing the unit rate. Otherwise the standing charge would be a fixed price across the board.

    All we need to know is there are multiple suppliers competing with different unit rates and standing charges, you goes where you likes.
    Maybe this explains what I'm getting at, the comments below the article are interesting.
    It's 'clarity' for the consumer. I haven't said anything different in any of my posts. This article is from 2013, I don't think their stance has changed.
    https://conversation.which.co.uk/home-energy/scrap-energy-standing-charges-simple-prices/

  • rebel_2
    rebel_2 Posts: 124 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Cardew said:
    The OP was only enquiring who had the lowest Gas Daily Standing Charge(DSC), not challenging the justification for such a charge.
    There have always been costs to supply customers with gas/electric, yet for many years there were firms like Ebico who did not have a DSC. Even when legislation mandated a DSC Ebico charged 0.00pence.
    I have an annex that is rarely used and was with Ebico until they folded just over a year ago*. - via a brief flirtation with Robin Hood energy. Last June I switched the annex supply to Eon on a 12 month contract and pay just over 8p DSC each for gas and electricity. Looking at all the alternatives available my future DSC charges will more than double.
    Some firms with the better tariffs will not allow a gas only supply.

    There was a time when the supply was with BG who offered a generous fixed sum as a 'discount' for Dual Fuel and a further fixed sum for paying by Direct Debit. These sums were credited to my account and exceeded the amount spent on gas and electricity; so my credit  balance kept increasing even after they reduced the Direct Debit to zero. I then had a phone call from BG who stated that they were not allowed to have a DD of £0.00 so would I mind if it increased to £1.00!!
    * I have just had an email from Ebico announcing to former customers.

    'I am really pleased to let you know that Ebico is back in the home energy market with Ebico Living. With Ebico Living, we will continue to bring you competitive home energy and be able to do more to help you manage your energy use, helping bring affordable energy to everyone. Energy will be delivered by our new supply partner, Octopus Energy, the Which? recommended energy supplier for the past four years.'
      Sadly they are not competitive for myself.

    It's a good thing that the OP has more information at hand before making a 'monetary decision' and enters a energy contract.
  • niktheguru
    niktheguru Posts: 1,487 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 17 May 2021 at 8:14AM
    rebel_2 said:
    Maybe this explains what I'm getting at, the comments below the article are interesting. 
    It's 'clarity' for the consumer. I haven't said anything different in any of my posts. This article is from 2013, I don't think their stance has changed.
    https://conversation.which.co.uk/home-energy/scrap-energy-standing-charges-simple-prices/

    All scrapping the standing charge will do is increase the cost of the unit rate, sure it might then be easier to do a "comparison" but the prices for higher consumption users will then be much higher, unless they do a tiered pricing structure dependent on usage....but again that will start to complicate the pricing again.
    It's pretty simple at the moment to compare prices, you just need to stick your usage into a comparison website, or do a bit of basic maths.
  • Tallerdave
    Tallerdave Posts: 321 Forumite
    100 Posts Name Dropper
    It's pretty simple at the moment to compare prices, you just need to stick your usage into a comparison website, or do a bit of basic maths.
    Particularly if, as in the OP's case, consumption is zero!
  • rebel_2
    rebel_2 Posts: 124 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    rebel_2 said:
    Maybe this explains what I'm getting at, the comments below the article are interesting. 
    It's 'clarity' for the consumer. I haven't said anything different in any of my posts. This article is from 2013, I don't think their stance has changed.
    https://conversation.which.co.uk/home-energy/scrap-energy-standing-charges-simple-prices/

    All scrapping the standing charge will do is increase the cost of the unit rate, sure it might then be easier to do a "comparison" but the prices for higher consumption users will then be much higher, unless they do a tiered pricing structure dependent on usage....but again that will start to complicate the pricing again.
    It's pretty simple at the moment to compare prices, you just need to stick your usage into a comparison website, or do a bit of basic maths.
    One supplier has 'multiple tariffs', each of those Tariffs has a different 'standing charge', don't think for one minute these energy companies are doing that to provide 'customer choice'. They are clearly be doing that to maximize their profits.
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