Why has the electricity standing charge price cap almost doubled?

Mr._Dan

I can see how electricity and gas per kWh prices are going up to reflect wholesale prices. Yet, the daily standing charge for electricity is going up by a factor of 1.8, almost double. From 25p to 45p per day from the 1st April. (£91 to £164 per year). It is still the same cables, generating stations, and wind turbines being used. What is the reasoning behind the large electricity standing charge increase?

Dan.

Thrugelmir

Plenty of threads on the topic already.  

flashg67

some explanation here - Scrap mounting energy standing charges | Financial Times (ft.com)

Mr._Dan

flashg67 said:

some explanation here...

Ahhh! The big billion pound profit-making companies get to charge the poorer and lower energy users proportionally more for the failed energy market.

bristolleedsfan

flashg67 said:

some explanation here - Scrap mounting energy standing charges | Financial Times (ft.com)

Without block  https://jnews.uk/scrap-mounting-energy-standing-charges/

happyandrew_2

I wondered the same too, surely the energy watch dogs should be looking into this.  

Verdigris

happyandrew_2 said:

I wondered the same too, surely the energy watch dogs should be looking into this.  

It is the energy watchdog, AKA Ofgem, that has largely caused the crisis.

tomp2494

To further fleece the already fleeced public. 

Just remember how much of your bill each month is VAT, Green Tax, and profit! 

The SC and unit rates would be much lower without all of that! 

QrizB

It costs money to provide a grid connection. Those costs are independent of how much energy you use.

If you don't want to pay them, go off grid.

GingerTim

Mr._Dan said:

I can see how electricity and gas per kWh prices are going up to reflect wholesale prices. Yet, the daily standing charge for electricity is going up by a factor of 1.8, almost double. From 25p to 45p per day from the 1st April. (£91 to £164 per year). It is still the same cables, generating stations, and wind turbines being used. What is the reasoning behind the large electricity standing charge increase?

Dan.

We are also just beginning to pay for the failure of multiple energy companies and the SOLR process.

Curiousgirl1

£68 a year is to be added to electricity standing charge to cover the SoLR process for the failed companies. That’s about 18p per day that everyone has to pay regardless of whether you’ve been with a failed company or not