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Standing charge for gas and electricity

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Comments

  • cx6
    cx6 Posts: 1,176 Forumite
    1,000 Posts Name Dropper
    edited 14 February 2022 at 4:45PM
    I don't - I only have a mobile ! :) However, I am with the OP on this one and have been for quite a long time.

    If there was one standing charge amongst all suppliers then all you would have to do is compare unit prices to know which is the cheapest - exactly, in fact, like filling up your car. No-one has to calculate if it is better to go to Shell charging £x forecourt charge plus £y a litre or BP charging £a forecourt charge plus £b a litre

    Having a common standing charge would, of course, be far too easy and a bit of obfuscation is much better.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Chacha17 said:
    I think you're thinking on a different level to me.  At least if I buy a loaf of bread I know what I'm buying and there's no standing charge for delivery.
    You are buying a finished product. That may well started initially with imported grain from Canada. You've no idea as to the unit cost per loaf to end up with a wrapped product on the supermarket shelf. 
  • user1977
    user1977 Posts: 18,182 Forumite
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    edited 14 February 2022 at 4:52PM
    cx6 said:
    I don't - I only have a mobile ! :) 
    Same principle whether your "line" physically exists or not! And mobile tariffs become even more tricky with different inclusive minutes/data etc.
  • Sandtree
    Sandtree Posts: 10,628 Forumite
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    cx6 said:
    I don't - I only have a mobile ! :) However, I am with the OP on this one and have been for quite a long time.

    If there was one standing charge amongst all suppliers then all you would have to do is compare unit prices to know which is the cheapest - exactly, in fact, like filling up your car. No-one has to calculate if it is better to go to Shell charging £x forecourt charge plus £y a litre or BP charging £a forecourt charge plus £b a litre

    Having a common standing charge would, of course, be far too easy and a bit of obfuscation is much better.
    And I am sure landlords with empty properties would love the fact they are now fee free and not contributing anything to the upkeep of the system. Telephony has gone the other direction though, increase the standing charge and bundle more in it.

    Personally think there are enough calculators out there to help people who struggle working out which is cheaper so not really obfuscation but more that in different scenarios different providers may be better. Having choice is a good thing in my book rather than I having to pay more because next door only live in their flat for 3 months of the year so others would have to pick up the lost revenue from the standing charge. 
  • mksysb
    mksysb Posts: 417 Forumite
    Eighth Anniversary 100 Posts Photogenic Name Dropper
    Chacha17 said:
    Can anyone explain how an existing supplier can have different rates of standing order supply?  If I stay on the current tariff it’s at one rate but if I take up their offer the standing charge escalates. Why? Shouldn’t there be some kind of regulation for all standing charges irrespective of supplier? 

    Because it gives you a choice, if you are a low user, a lower standing charge with higher rates would suit you, but a high user would prefer a higher standing charge and lower rates
  • born_again
    born_again Posts: 21,009 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    cx6 said:
    I don't - I only have a mobile ! :) However, I am with the OP on this one and have been for quite a long time.

    If there was one standing charge amongst all suppliers then all you would have to do is compare unit prices to know which is the cheapest - exactly, in fact, like filling up your car. No-one has to calculate if it is better to go to Shell charging £x forecourt charge plus £y a litre or BP charging £a forecourt charge plus £b a litre

    Having a common standing charge would, of course, be far too easy and a bit of obfuscation is much better.
    But not everyone is supplied by the same company, 10 in the UK. Hence why you are asked for your postcode when looking to change/compare costs.
    So these suppliers might have different charges.

    https://www.energy-uk.org.uk/find-out-who-your-energy-company-is.html
    Life in the slow lane
  • ThumbRemote
    ThumbRemote Posts: 4,739 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I have seen the term 'confusopoly' used to describe how standing charges and units rates apply, as they mainly serve to prevent like-for-like comparisons across suppliers. 
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