BBC article on regional standing charge differences

AcerBen · 28 March 2022 at 9:21AM

https://www.bbc.co.uk/news/business-60878314

The BBC are making a fuss over big differences in the jump in standing charges depending on where you live. But have they oversimplified things by not also pointing out that the unit rates also differ? Surely the price cap of £1,971 still applies?

I did some calculations based on Octopus' new rates as an example:

London: 10kWh @ 29.63p/kWh = £2.96 + 31.88p sc = £3.28

Midlands: 10kWh @ 27.86p/kWh = £2.79 + 47.86p sc = £3.27

so whilst the Midlands will pay a much bigger standing charge, an average user (10kWh) a day will pay about the same because the unit rate is lower.

So are they wrong to be making a big deal out of it, or am I missing something?

brewerdave · 28 March 2022 at 9:36AM

As usual the Beeb is very late to the party - regional differences are nothing new - it's just that the huge jump in the cap has got them excited !!

Herosrest · 28 March 2022 at 9:38AM

National Grid PLC on Monday said it agreed to sell 60% interest in its gas transmission and metering business in the UK to a consortium of "long-term infrastructure investors" for GBP2.2 billion in cash.

The London-based electricity and gas utility company said the consortium includes Sydney-based asset manager Macquarie Asset Management and Victoria, Canada-based investment management firm British Columbia Investment Management.

The deal implies an enterprise value of GBP9.6 billion for the entire business, which National Grid calls NGG.

Following the transaction, National Grid will own a 40% minority equity interest in NGG through a new holding company called 'GasT TopCo'.

Additionally, National Grid will receive roughly GBP2.0 billion from additional debt financing at completion, the FTSE 100 company explained.

National Grid also has entered into an option agreement with the consortium for the potential sale of the remaining 40% of equity in GasT TopCo. The option can be exercised by the consortium between January 1, 2023 and June 30, 2023, it said.

If the option is exercised, the payment for the further 40% interest is expected to be paid in cash to National Grid on similar terms to the first 60%.

facade · 28 March 2022 at 9:40AM

The price cap actually does vary by region.

Like most "news" the article is just clickbait though, at least the BBC hasn't sunk down (yet) to making the fact that you can take the detergent drawer out of your washing machine to clean it a multi-page "news" item like a certain "newspaper" that pops up on my facebook feed

AcerBen · 28 March 2022 at 9:42AM

brewerdave said:

As usual the Beeb is very late to the party - regional differences are nothing new - it's just that the huge jump in the cap has got them excited !!

But that cap is still £1,971 for an average bill, regardless of where you are in the country, right? So if you are an average user, you might pay more standing charge in one region, but end up paying less per unit and it balances out? In theory?

MWT · 28 March 2022 at 9:43AM

AcerBen said:

so whilst the Midlands will pay a much bigger standing charge, an average user (10kWh) a day will pay about the same because the unit rate is lower.

So are they wrong to be making a big deal out of it, or am I missing something?

If you use the numbers for the mythical 'typical' user, the difference from lowest to highest is about £1.50 a week.

Most of that is caused by the North Wales & Mersey region which is considerably higher than the others.

If you removed that one from the mix then it would be under £1 difference from lowest to highest.

Not really a story to get excited about, but if you live in the North Wales & Mersey region then there would seem to be something to be concerned about.

AcerBen · 28 March 2022 at 9:43AM

facade said:

The price cap actually does vary by region.

Like most "news" the article is just clickbait though, at least the BBC hasn't sunk down (yet) to making the fact that you can take the detergent drawer out of your washing machine to clean it a multi-page "news" item like a certain "newspaper" that pops up on my facebook feed

So is the £1,971 actually UK average? Where can we see the regional price caps?

MWT · 28 March 2022 at 9:47AM

AcerBen said:

brewerdave said:

As usual the Beeb is very late to the party - regional differences are nothing new - it's just that the huge jump in the cap has got them excited !!

But that cap is still £1,971 for an average bill, regardless of where you are in the country, right? So if you are an average user, you might pay more standing charge in one region, but end up paying less per unit and it balances out? In theory?

No, the caps are set by region/metering type/payment method, there isn't just one cap, there are many.

The press just simplifies it to a single number.

t0rt0ise · 28 March 2022 at 9:48AM

Now work it out for something like 1,000 units a year and see if they are the same!

Admiral_Barbarossa · 28 March 2022 at 9:56AM

Never any mention that their regressive TV Tax affects single mothers more than others! Or that their TV Tax Collectors send more women to court than men!