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Held to ransom

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  • maisie_cat
    maisie_cat Posts: 2,137 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Academoney Grad
    You’re all missing the point. I don’t get a choice in this. I have to pay for something even though I’m not using it!!! So will I have to pay for the upkeep of the national road network even though I don’t have a car? 
    You do have a choice, if you are not using electrcity disconnect from the grid. Your are paying for it being available to you. You do indirectly pay for the road network in fares and delivery costs.
    As with all distress expenditure most households don't have a choice.

  • The argument about opting in and out for services has raged on for years. Why should childless couples pay for the education of other people’s children; why should someone pay for defence when they are a pacifist; why should people contribute towards the NHS when they have private healthcare…. The truth is that we live in a democracy. There may well be a No Standing Charge party in the future. If the party can secure a majority then it has the democratic right to implement its policies. 

    If I may correct the impression that standing charges are in some way helping out failed suppliers. The truth is that SoLRs are allowed to recover some of the costs of providing energy to the customers of failed suppliers. SoLRs will not have hedged for this customer base so they are providing each kWh at a loss. SoLRs will also seek to recover most of the credit balance protection offered by Ofgem to those customers affected. The present system is far from perfect but it does keep the lights on.
  • jbuchanangb
    jbuchanangb Posts: 1,338 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    To those who ask "when have charges ever gone down" I offer the following chart of 39 years worth of electricity prices. It looks as though 2013-14 were bad years for standing charges. The new SVR from this April comes out at £37 per quarter, so it is a big jump.

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    There's been considerable storm damage to infrastructure in recent years. By consuming energy we have contributed to climate change. We are all now paying the cost for an egotistic culture throughout society. 
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