Why are the standing charges increasing?

valmiki

I can understand that the price cap is moving upwards in line with wholesale costs of energy, but why does this mean the standing charges are increasing? Surely the standing charge is meant to reflect the costs of the energy provider in billing, etc and also paying for the infrastructure and is fixed? 

Sorry if the answer is obvious, I tried to google this but didn’t get an answer. 

MWT

... and also paying for the costs of the SoLR scheme via the electricity standing charge ...

The capped gas standing charge will hardly change at all.

Thrugelmir

Recent storm damage has resulted in a considerable amount of infrastructure needing to be repaired. 

valmiki

MWT said:

... and also paying for the costs of the SoLR scheme via the electricity standing charge ...

The capped gas standing charge will hardly change at all.

Thanks, this explains it I guess

markin

*Network costs: The main driver of this increase is the recovery of Supplier of Last Resort (SoLR) levy costs (£68). A supplier acting as a SoLR can make a claim for any reasonable additional, otherwise unrecoverable, costs they incur. These levy claims are paid to energy companies by the distribution network companies and recovered from consumers via their charges.

https://www.ofgem.gov.uk/publications/price-cap-increase-ps693-april

Verdigris

We didn't have any storm damage in the South West and yet the SC is highest in the UK, higher than the North of Scotland, which did suffer storm damage. London SC is almost half the cost of the South West.

smileguy

Perhaps just another way of the companies making greater profits ?🤷‍♂️

MWT

smileguy said:

Perhaps just another way of the companies making greater profits ?🤷‍♂️

Making any profit at all from retail customers would be a bonus right now, but no, that isn't the driver behind the significant increase in electricity standing charge, it really is mostly down to the levy to cover SoLR costs...

wrf12345

Be interesting to see if there are any offers of low or zero standing charges in April together with higher unit rates. I am not holding my breath, though.

I don't have one but the poor on prepayment meters are really going to be hammered by higher unit rates AND the ridiculously high - nearly two hundred quid in some regions - standing charge on elec, as the meters clock up the s/c even if there is no credit on the meter.