Standing charge recover

nicpy

Martin recently explained why standing charges on electricity increased to cover the cost of bailing out energy companies that folded. Is it therefore reasonable to assume that once that money has been recovered, that standing charges will revert to their original level. Or is that just a dream?

Mobtr

Probably just a dream. Due to go up again next April for the £200 we’re getting in October. Some transparency on how much is needed to bail out the SoLR companies and how much is paid back yearly would be nice but I doubt we’ll get it 

MWT

nicpy said:

Martin recently explained why standing charges on electricity increased to cover the cost of bailing out energy companies that folded. Is it therefore reasonable to assume that once that money has been recovered, that standing charges will revert to their original level. Or is that just a dream?

For the capped standard variable rate tariff, yes, once the recovery of the SoLR costs has been completed , that element will drop out of the calculation used to generate the capped standing charge level.

Going back to the 'original level' assumes that there are no further additional costs for anything else, but if that is the case then the capped standing charge will fall.