Shell Energy and Daily Standing Charges

Graywisdom

Looking through what Deals Shell Energy were offering, I checked out their 'Energy April 2023 (v3)' arrangment.
I was suprised to see that their Daily Standing Charge for electricity is a eye-watering 56.52p per day! That is more
than double what I pay to my current supplier and works out as a massive £50.00 on a quarterly bill. Their Standing Charges on Gas is 36p per day. 
On Shell Energy's website they say their supplies are from 100% renewable sources. As it is natural gas that has 
risen dramatically in price, then surely Shell should not be raising their prices as much as other suppliers?

gt94sss2

Does the higher standing charge come with lower unit charges?

Even if a supplier buys renewable energy their costs have gone up - their supplier will sell at the market price for energy

Verdigris

It might still be a bargain for a heavy user, depending on kWh price.

jimjames

Graywisdom said:

On Shell Energy's website they say their supplies are from 100% renewable sources. As it is natural gas that has 
risen dramatically in price, then surely Shell should not be raising their prices as much as other suppliers?

How do you get renewable natural gas?

Verdigris

How do you get renewable natural gas

From a biodigester. However, there isn't enough of that to go round as it is generally used to generate electricity on site. "Green" gas is carbon-offset, by tree planting and the like, although this system is open to abuse, sadly.

Alderbank

Common sources of renewable natural gas (also known as biogas) include landfills, animal manure, food scraps and wastewater sludge. Bacteria break down organic matter in these "wet" wastes and produce methane, carbon dioxide and other gases and solids through a process referred to as anaerobic digestion. The resulting biogas then can be processed or "upgraded" to get rid of impurities, so that it is nearly pure methane. It is then suitable for use just like 'fossil' natural gas.

[Deleted User]

Three Green suppliers have a derogation/exemption from the Ofgem Cap as they only supply green-sourced energy. The rest may claim that they are Green but are usually buying REGOs.

https://www.energylivenews.com/2019/08/01/ofgem-confirms-permanent-energy-price-cap-exemptions-for-three-green-suppliers/

daveyjp

Whilst the daily charge may be high how does their kWh charge compare, bearing in mind this is a 1.5 year fix?

For some high users this may well be the cheapest option currently available. A 25p higher standing charge may be wiped out quickly if they are saving 5-10p per kWh.

indigoben

I would be £105 better off on this tariff for electricity compared to the Flexible 6 I'm getting put on as an ex-Green customer. Certainly worth considering.