Why has the electricity standing charge price cap almost doubled?

wild666

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.

In as few words as possible the number of companies that have gone bust this year.

wild666

Curiousgirl1 said:

£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 

Is the £68 for one year or for more years? If it's one year then the standing charge on electric should go down by 18.63p per day in 12 months but the energy compamies will keep the higher price. We could also see electic standing charges increase by 11p per day in October meaning the standing charges are in excess of 60p in one or two areas of the UK. 
In reality everyone in the UK is screwed because one an increase is made is rarely decreases, it would take a massive backlash by the public to see any standing charges decreases once implemented as to pay back the £200 or the £68 will continue and we won't see any real decrease in the standing charges, they will say repair costs to the infrastructure is more so they can keep the increases of the SoLR and government £200 loan but not a loan con. 

MWT

wild666 said:

Curiousgirl1 said:

£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 

Is the £68 for one year or for more years? If it's one year then the standing charge on electric should go down by 18.63p per day in 12 months but the energy compamies will keep the higher price.

I think the phrase is 'assuming facts not in evidence'   

The way the capped limit on the standing charge is set gives a precise and very detailed breakdown of the elements in the standing charge, so there is no room for it to stay high once the SoLR costs have been recovered.

Although there is no equivalent breakdown for the fixed price tariffs, competitive pressures will have an impact once we can return to a position where the fixed tariffs are below the capped rates.

[Deleted User]

MWT said:

wild666 said:

Curiousgirl1 said:

£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 

Is the £68 for one year or for more years? If it's one year then the standing charge on electric should go down by 18.63p per day in 12 months but the energy compamies will keep the higher price.

I think the phrase is 'assuming facts not in evidence'   

The way the capped limit on the standing charge is set gives a precise and very detailed breakdown of the elements in the standing charge, so there is no room for it to stay high once the SoLR costs have been recovered.

Although there is no equivalent breakdown for the fixed price tariffs, competitive pressures will have an impact once we can return to a position where the fixed tariffs are below the capped rates.

Good question and an answer which may give us all a crumb of comfort once the current energy situation settles down. 

Effician

Why no mention of the £150 council tax rebate as a buffer to the price increases,  as a very low electric only user  at  <1500kw/h per year i'm hardly any worse off for the next 12 months going from Oct svr to Apr svr.

Curiousgirl1

wild666 said:

Curiousgirl1 said:

£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 

Is the £68 for one year or for more years? If it's one year then the standing charge on electric should go down by 18.63p per day in 12 months but the energy compamies will keep the higher price. We could also see electic standing charges increase by 11p per day in October meaning the standing charges are in excess of 60p in one or two areas of the UK. 
In reality everyone in the UK is screwed because one an increase is made is rarely decreases, it would take a massive backlash by the public to see any standing charges decreases once implemented as to pay back the £200 or the £68 will continue and we won't see any real decrease in the standing charges, they will say repair costs to the infrastructure is more so they can keep the increases of the SoLR and government £200 loan but not a loan con. 

It will depend on how much the energy companies claim for onboarding the customers from the failed suppliers 
Not really fair on the ones who haven’t changed to have to subsidise those that did 

Thrugelmir

Curiousgirl1 said:

wild666 said:

Curiousgirl1 said:

£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 

Is the £68 for one year or for more years? If it's one year then the standing charge on electric should go down by 18.63p per day in 12 months but the energy compamies will keep the higher price. We could also see electic standing charges increase by 11p per day in October meaning the standing charges are in excess of 60p in one or two areas of the UK. 
In reality everyone in the UK is screwed because one an increase is made is rarely decreases, it would take a massive backlash by the public to see any standing charges decreases once implemented as to pay back the £200 or the £68 will continue and we won't see any real decrease in the standing charges, they will say repair costs to the infrastructure is more so they can keep the increases of the SoLR and government £200 loan but not a loan con. 

It will depend on how much the energy companies claim for onboarding the customers from the failed suppliers 
Not really fair on the ones who haven’t changed to have to subsidise those that did 

Why should some customers subsidise those who live in storm damaged areas?  Infrastructure doesn't repair itself.

EssexHebridean

Thrugelmir said:

Curiousgirl1 said:

wild666 said:

Curiousgirl1 said:

£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 

Is the £68 for one year or for more years? If it's one year then the standing charge on electric should go down by 18.63p per day in 12 months but the energy compamies will keep the higher price. We could also see electic standing charges increase by 11p per day in October meaning the standing charges are in excess of 60p in one or two areas of the UK. 
In reality everyone in the UK is screwed because one an increase is made is rarely decreases, it would take a massive backlash by the public to see any standing charges decreases once implemented as to pay back the £200 or the £68 will continue and we won't see any real decrease in the standing charges, they will say repair costs to the infrastructure is more so they can keep the increases of the SoLR and government £200 loan but not a loan con. 

It will depend on how much the energy companies claim for onboarding the customers from the failed suppliers 
Not really fair on the ones who haven’t changed to have to subsidise those that did 

Why should some customers subsidise those who live in storm damaged areas?  Infrastructure doesn't repair itself.

I don't claim the Warm Home discount - why should I have to pay extra to cover the people who do...? [/sarcasm mode]  

TArquintp

My notification of the new charges from British Gas is totally transparent. So transparent in fact that when I printed the email, it doesn't include the actual unit and standing charge rates! You have to use SNIP, screen dump or an electronic copy to keep a handy example to compare other companies rates against.