The new price cap standing charges

Kostandia

I'm still gobsmacked that there isn't a massive outcry about the new price cap standing charges. They add up to 72.56 pence a day x 365 days = £264.844 a year. For nothing, for thin air. If we all stopped using all gas/elec, they will be charging us £264 for absolutely nothing. Why isn't everyone screaming about this? It' the same as imagining Tesco charging us that for their background infrastructure

TheMilkmansDad

please read all the other threads on the same subject. It's been asked and answered roughly a million times already.

GingerTim

How do you think electricity and gas get to our homes?

london21

Nothing much you can do Tbh. 

MWT

Kostandia said:

For nothing, for thin air. If we all stopped using all gas/elec, they will be charging us £264 for absolutely nothing. Why isn't everyone screaming about this? It' the same as imagining Tesco charging us that for their background infrastructure

It is the cost of having gas and electric available, you can choose to go off grid if you want, but it isn't going to be cheaper to generate your own power...

Even Tesco charge you for home delivery...

anotheruser

MWT said:

Kostandia said:

For nothing, for thin air. If we all stopped using all gas/elec, they will be charging us £264 for absolutely nothing. Why isn't everyone screaming about this? It' the same as imagining Tesco charging us that for their background infrastructure

It is the cost of having gas and electric available, you can choose to go off grid if you want, but it isn't going to be cheaper to generate your own power...

Even Tesco charge you for home delivery...

But they don't charge you for walking in and shopping with them.


It's the question of why this cost isn't built in to the overall price.
What, because some old people wanted cheaper bills 40/50 years ago and thought it would be a better idea?  Those same people that seem to think £2.99 is way loads cheaper than £3?  Yeah, good one old people.

MattMattMattUK

anotheruser said:

MWT said:

Kostandia said:

For nothing, for thin air. If we all stopped using all gas/elec, they will be charging us £264 for absolutely nothing. Why isn't everyone screaming about this? It' the same as imagining Tesco charging us that for their background infrastructure

It is the cost of having gas and electric available, you can choose to go off grid if you want, but it isn't going to be cheaper to generate your own power...

Even Tesco charge you for home delivery...

But they don't charge you for walking in and shopping with them.


It's the question of why this cost isn't built in to the overall price.
What, because some old people wanted cheaper bills 40/50 years ago and thought it would be a better idea?  Those same people that seem to think £2.99 is way loads cheaper than £3?  Yeah, good one old people.

You do not have to use Tesco, they do not have to supply to you or sell to you, they to not provide a permanent provision of their service to your premises, therefore a standing charge from Tesco would make no sense.

They energy providers have to provide an electricity and possibly gas provision direct to your premises, that costs not matter how much gas you use, hence covering the cost by the standing charge.

If you remove the standing charge the average and high users subsidise low users, if you have a standing charge which covers the fixed cost then no one is directly subsidising anyone on the basis of usage (although some will be subsidised due to social components). 

Astria

Kostandia said:

I'm still gobsmacked that there isn't a massive outcry about the new price cap standing charges. They add up to 72.56 pence a day x 365 days = £264.844 a year. For nothing, for thin air. If we all stopped using all gas/elec, they will be charging us £264 for absolutely nothing. Why isn't everyone screaming about this? It' the same as imagining Tesco charging us that for their background infrastructure

Part of the profit from the items you buy go into the payment for their background infrastructure.

Energy providers have attempted to do this before, it didn't go down well and made it difficult to compare tariffs between providers, so they moved to a standing charge/unit charge model.

Gerry1

anotheruser said:

MWT said:

Kostandia said:

For nothing, for thin air. If we all stopped using all gas/elec, they will be charging us £264 for absolutely nothing. Why isn't everyone screaming about this? It' the same as imagining Tesco charging us that for their background infrastructure

It is the cost of having gas and electric available, you can choose to go off grid if you want, but it isn't going to be cheaper to generate your own power...

Even Tesco charge you for home delivery...

What, because some old people wanted cheaper bills 40/50 years ago and thought it would be a better idea?  Those same people that seem to think £2.99 is way loads cheaper than £3?  Yeah, good one old people.

Ageist post.

wild666

I also think that the SC for electric and gas should be added to the kWh rates, the same could be said of the SC for water as well.
Low users would benefit but average users would pay the same SC and high users considerably more, This could see average and high users trying to find ways to lower their usage even if it was only turning off everything in standby mode that wasn't used. doing that will save me 800 kWh's per year or at April 2022 rates around £227 per year on the electric and around £130 per year on gas by turning the temperatures down on the combi boiler. £357 or if you were to use my 2018 energy figure's  me paying just £75 for a years gas and electric, but using my 2018 figures it would be only £114

jrawle

The only thing that is higher than the current energy prices is the count of threads about standing charges!

As people like supermarket analogies, my take on it is that a household that drinks more milk pays less per litre than one that uses less milk. Is this fair on low milk users? Is it fair on one-person households? Maybe not, but I take the pragmatic view that you can't expect the world to be set up in exactly the way that benefits you. People in other situations will have different ideas about what is "fair". A system where there is some element of a fixed charge and some per-unit cost is a happy medium.