Price cap - Standing charges

Mark_G

I cant find a definite answer that tells me about the standing charge.

So my question is...

Does the price cap of 54% to start on April 1st 2022 apply to the standing charge aswell as the unit rate?

Ultrasonic

54% is a representative value for the change in total bill for average energy consumption. The changes each of us will see will depend on our individual energy use, and previous tariff.

https://forums.moneysavingexpert.com/discussion/6339555/mse-update-why-is-the-standing-charge-for-electricity-nearly-doubling-from-1-april#latest

Ultrasonic

Verdigris said:

Yes it does.

The answer is closer to 'no' I'd say, since the capped standing charges have almost doubled.

The_Fat_Controller

Suggest you have a look at the many topics already on this issue, along with forgetting 54%, that is only applicable to Mr/Mrs Average User already on the SV tariff when the cap changes in April.

The gas standing charge is hardly changing but the electricity standing charge is almost doubling.

The capped values vary by region for both SC and unit rates.

Mark_G

Most websites i have looked at, including OFGEM, indicate that it does apply to the standing charge, yet british gas is raising mine by nearly 90%

Ultrasonic

Mark_G said:

Most websites i have looked at, including OFGEM, indicate that it does apply to the standing charge, yet british gas is raising mine by nearly 90%

Have a read of the link I posted above...

Mark_G

So in reality these companies could charge £1 per day standing charge and there is nothing we can do about it.

Most of my prices are going up by more than 54%

razord

Mark_G said:

So in reality these companies could charge £1 per day standing charge and there is nothing we can do about it.

Most of my prices are going up by more than 54%

No, because there *is* a price cap specific to standing charges.

Verdigris

Ultrasonic said:

Verdigris said:

Yes it does.

The answer is closer to 'no' I'd say, since the capped standing charges have almost doubled.

I misread the question, I thought I'd deleted before anyone had read my answer!

Ultrasonic

Mark_G said:

So in reality these companies could charge £1 per day standing charge and there is nothing we can do about it.

Most of my prices are going up by more than 54%

No, as explained in the link I posted...

MWT

Mark_G said:

Does the price cap of 54% to start on April 1st 2022 apply to the standing charge aswell as the unit rate?

You flawed premise is causing you to misunderstand what is going on...

There is no 'price cap of 54%'.

You need to start at the other end of the process.

There is a table of caps which varies by region, payment method and metering type and limits the standing charge, and separately the total payable including the standing charge for a typical customer using a specific amount of electricity and gas.

On average across all the regions, for a customer paying by direct debit, using a single rate tariff for electricity, and consuming 2900kWh of electricity and 12,000kWh of gas the total of both bills will go up by about 54%.

Alter any one of those assumptions and it will not be 54%.