Energy Standing Charge RIPOFF

wild666

OFGEM have recoup the money they paid out to SoLR, approximately  18.6p per day of the increase is because of suppliers going under. If people think this 18p will be scrubbed from the SC when they have recouped the money paid out think again, then there is the 11p per day from next April , energy companies will find a way of keeping both of those fees on the SC. Those two fees together are more than the SC for electric until the end of March this year.

EssexHebridean

Deleted_User said:

Might seem a rip of but it covers the cost of ;
Maintaining the energy infrastructure, including the wires and pipes that carry gas and electricity across the country to your home.  Keeping your home connected to the energy network. Carrying out meter readings. Environmental and social taxes.

And most importantly in relation to the sharp increase, the costs relating to the SOLR process for customers of failed suppliers which have been at an unprecedented level in the last year. 

[Deleted User]

wild666 said:

OFGEM have recoup the money they paid out to SoLR, approximately  18.6p per day of the increase is because of suppliers going under. If people think this 18p will be scrubbed from the SC when they have recouped the money paid out think again, then there is the 11p per day from next April , energy companies will find a way of keeping both of those fees on the SC. Those two fees together are more than the SC for electric until the end of March this year.

The Cap is set by Ofgem using an industry-agreed set of criteria. Indeed, the Cap was brought in to prevent the very thing that you are suggesting will happen. If costs reduce then so will the Cap. That said, Ofgem has already announced measures to increase the number of EV charging sites. The cost of the electrical infrastructure needed to support these sites will be added to future consumer bills. Going green comes at a very high cost that the Government is presently ignoring. Money raised to support Ofgem’s activities are recovered from suppliers which if you recall for the reason for some suppliers going under: that is, they failed to pay their dues to Ofgem.

savers_united

I don't seem to recall any posts on here when people were paying next to nothing in SC, and asking questions as who maintains the network when we are not paying a SC.

Reality is the SC we all see now is reflective of those costs and addtional costs for the SOLR,. Its just we have all become used to having next to zero SC on some of the highly competitive fixed rate deals, now those deals are no longer available people are shocked with what a SC should actually be. 

So scrub the past decade, this is the new reality. 

gefnew

Standing charge info.

Helping you be energy efficient and to save money on your bills

We know the impact of increased energy supply costs is a real concern for many people and we wanted to share information and support services with you to try an alleviate some of those concerns.

As the company responsible for the network that delivers power to your door, regardless of who you choose to buy your electricity from, we want to ensure you can access advice that could help you reduce your energy costs and carbon footprint in the months ahead.

While our network-related costs, which appear on your electricity bill from your chosen supplier, currently remain unchanged and a relatively small share of your overall bill (around 25p a day/£90 a year*), we want to help you take action that could save money on your bills now and in future.

Northern power grid quote.

Ultrasonic

savers_united said:

I don't seem to recall any posts on here when people were paying next to nothing in SC, and asking questions as who maintains the network when we are not paying a SC.

Why would there be? The energy companies were still paying for the upkeep, and other levies as required. It's just that energy companies chose to set their pricing structure in this way, just as suppliers still have freedom to do on all current tariffs not subject to the price cap. I'm on a fixed tariff where the electricity standing charge is 27.3 p per day vs the capped rate of over 50 p per day for where I live for example.

savers_united

Ultrasonic said:

savers_united said:

I don't seem to recall any posts on here when people were paying next to nothing in SC, and asking questions as who maintains the network when we are not paying a SC.

Why would there be? The energy companies were still paying for the upkeep, and other levies as required. It's just that energy companies chose to set their pricing structure in this way, just as suppliers still have freedom to do on all current tariffs not subject to the price cap. I'm on a fixed tariff where the electricity standing charge is 27.3 p per day vs the capped rate of over 50 p per day for where I live for example.

Of course they would not, but reality is the costs were always there but with low energy prices and competiton were easier to absord. The good times are behind us, there is little point in all these stand charge posts, eventually once all existing low price fixes come to an end more and more people will get to see the true cost of maintaining the network and meeting the various obligations. However its sliced there are costs that must be met, and its unlikely we will see SC as low as they have been previously, now the Gov't is floating the idea of new nuclear plants and all paying back the £200 loan higher SCs are here to stay is my view, nothing underhanded just a true reflection of costs we all face. 

sammyjammy

If we had no standing charge it would be even less transparent than it is now, I'm a low user so SC makes up more than half my bill averaged out over the year.  If I knew it fairly worked out and didn't go towards profits I'd be ok (well as far as you can be!) with it, climate change, vulnerable and low income users etc, the money has to come from somewhere.