Unit Price Vs Standing Charge April 22 Energy Price Increase

tknight03 · 2 March 2022 at 11:04AM

I have just received my update from British Gas for April price increase, however they seem to be increasing both the unit price (which is what I thought was linked to the wholesale prices), but also have increased the daily standing charge, which I suspect will not reduce if wholesales prices ever go back down, this seems an undercover way of gaining a long term price increase - My Electricity standing charge has almost doubled from 24.1p to 43.3p per day, does anyone agree this is a covert price increase that won't go away ?

Effician · 2 March 2022 at 11:10AM

https://forums.moneysavingexpert.com/discussion/6338721/british-gas-standing-charge-increase/p1

MattMattMattUK · 2 March 2022 at 11:11AM

tknight03 said:

I have just received my update from British Gas for April price increase, however they seem to be increasing both the unit price (which is what I thought was linked to the wholesale prices), but also have increased the daily standing charge, which I suspect will not reduce if wholesales prices ever go back down, this seems an undercover way of gaining a long term price increase - My Electricity standing charge has almost doubled from 24.1p to 43.3p per day, does anyone agree this is a covert price increase that won't go away ?

This has been discussed dozens of times on the Energy forum on this site, have a read, use the search function.

In relation to the part in bold, no, it is set by Ofgem based on the costs of providing the network, if you search the forum, or have a look on the Ofgem website, you can see the methodology for how it is calculated.