Energy Costs Standing Charge

MWT

Peggy0628 said:

Removing the SC and raising the unit price would actually save me (and others will low gas usage) quite a bit of money in the long term... 

... as long as others subsidise you that is ...

I still haven't seen any justification for expecting others to pay more just so you can pay less...

Peggy0628

Surely, everyone should pay for what they use. If I have low usage, I pay less, if I use more, I pay more. Put unit price up a bit to cover for the lack of SC and everyone will pay exactly for what they use. Why should I pay almost £10/week in SC just because my house happens to be connected to the gas mains when the actual cost of gas used is £4/week? Where's the incentive for me to reduce my gas usage? If I don't use any gas, I should not be paying anything...

MWT

Peggy0628 said:

Surely, everyone should pay for what they use. If I have low usage, I pay less, if I use more, I pay more. Put unit price up a bit to cover for the lack of SC and everyone will pay exactly for what they use. Why should I pay almost £10/week in SC just because my house happens to be connected to the gas mains when the actual cost of gas used is £4/week? Where's the incentive for me to reduce my gas usage? If I don't use any gas, I should not be paying anything...

You pay for your usage by the kWh price, you pay for the ability to use gas through the standing charge.

If you do not wish to have the ability to use gas then terminate the supply and have the meter removed and you will not longer pay the standing charge...

I do see the attraction for you in having others pay more so you can pay less, I just don't see any rational justification for it...

The incentive to reduce use is in the price you pay for the gas you use, and if someone only uses it to cook with then arguably they'd be better off switching to electric and having it removed.

Thrugelmir

NJB1234 said:

Astria said:

Surely with the government pushing for people to drive more electric cars, the energy consumption is only going to increase, not decrease. It won't be long until the SC is increased again to upgrade the grid to allow more capacity for charging electric vehicles.

But if you go the whole way and don't have a car at all you will be unreasonably penalised if you have to pay an increased  service charge that finances a grid upgrade to facilitate car charging.  

You'll be using other forms of transport that require electricity as their power source. Railway lines have been electrified for example. . 

Then the arguments revert back to people who never have children.........

MWT

The fundamental fallacy of the desire to shift gas standing charges onto the kWh charge is that for half the year the majority of people are paying almost as much in standing charges as they are in kWh charges, there are very few large gas users outside of the winter months so there is nowhere to recoup the very real costs of providing the network from other than the standing charge...

For electricity, the standing charges carries the various additional costs of the green program and other levy collections including the WHD which should fall evenly on all users.

The kWh costs alone is sufficient incentive to reduce use...

Peggy0628

MWT said:

The kWh costs alone is sufficient incentive to reduce use...

My daily electricity use in the past month has been between 1 and 3 kWh a day. And that is in the middle winter with GCH/combi boiler on (in the summer it's even less). I have absolutely no incentive to reduce my use because it will make minimal difference to my bill... Including the SC in the unit price would be a fairer way of calculating the cost.

QrizB

Peggy0628 said:

Including the SC in the unit price would be a fairer way of calculating the cost.

It wouldn't be fairer, though; it would just cost you personally less.

You would receive the benefit of a mains gas/electricity connection without paying for it.

bristolleedsfan

Peggy0628 said:

MWT said:

The kWh costs alone is sufficient incentive to reduce use...

My daily electricity use in the past month has been between 1 and 3 kWh a day. And that is in the middle winter with GCH/combi boiler on (in the summer it's even less). I have absolutely no incentive to reduce my use because it will make minimal difference to my bill... Including the SC in the unit price would be a fairer way of calculating the cost.

MWT said:

Peggy0628 said:

Removing the SC and raising the unit price would actually save me (and others will low gas usage) quite a bit of money in the long term... 

... as long as others subsidise you that is ...

I still haven't seen any justification for expecting others to pay more just so you can pay less...

Summary (ofgem.gov.uk)

"Consumers most vulnerable low income households least able to avoid paying high prices for energy most likely suffer hardship, they consume smallest amounts so the standing charge forms large part of total bill,means pay highest overall rate for energy use"

Curiousgirl1

Peggy0628 said:

MWT said:

The kWh costs alone is sufficient incentive to reduce use...

My daily electricity use in the past month has been between 1 and 3 kWh a day. And that is in the middle winter with GCH/combi boiler on (in the summer it's even less). I have absolutely no incentive to reduce my use because it will make minimal difference to my bill... Including the SC in the unit price would be a fairer way of calculating the cost.

I find it very hard to believe you only use 1-3kwh per day for heating, cooking & water. 1-3 units on your meter maybe which is a totally different thing & depending on if your meter is imperial or metric, again makes a huge difference. Also your standing charge is not £10 per week. That’s £1.42 per day. If that’s the case you need to contact your gas supplier as you are being vastly overcharged as it should be about 27p

Flight3287462

Peggy think of it a bit like owning a car, you have numerous fixed costs (Insurance, VED, MOT, Servicing etc) that need to paid regardless of whether you drive the car or not and those charges can be be quite significant.  You pay these because you because you want the enjoyment/need of owning a car.