The new price cap standing charges

pochase

 You can calculate very easily with a standing charge.

You know how many days a year has, and how many meters are out there apart from a few newbuilds or house been torn down.

So I know exactly how much to charge if I need amount x.

How do you want to do this with required money to the unit price. If users are reducing their usage as you expect, you will fall short of the required money.

Apart from this, why should a high user pay more for the infrastructure or SOLR cost, if the use is the same. Would make more sense to say we charge a user in a small village more, because the cost for the infrastructure is much higher per household than to supply a household in a big city?

Gerry1

wild666 said:

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.

That would unfairly penalise people who have to use more energy, e.g. retirees, those with medical issues who need more heating, the housebound, people WFH etc.

Undisputedtruth

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

I used to have a single tier tariff with no standing charges for my electricity bill. It was brilliant as my bill was low and it gave the incentive to buy more energy efficient appliances/devices reflecting in lower electricity bills.

Unfortunately Ofgem was very much against the idea of a single tier tariff. My yearly electric bill jumped from £150 to £250 after Ofgem ending single tariffs. Thanks Ofgem. I haven't done the calculation for my own bill yet but I suspect it'll be closer to £500 with a similar amount level of energy usage.

Your point: "why isn't everyone screaming about this?

I believe it's down to most people not being able to go through the figures. Most people aren't good at maths and some being lazy to do so.

Another reason, is that it could increase energy bill for higher energy users if standing charges were abolish. Energy companies are very much against the removal of standing charges as it runs the risk of losing their biggest paying customers.

Personally, I think the removal of standing charges gives the incentive for customers to become more energy efficient and cut the number of energy infrastructure projects like nuclear reactors.

QrizB

Undisputedtruth said:

Unfortunately Ofgem was very much against the idea of a single tier tariff.

I think you'll find that Ofgem isn't opposed to single-tier tariffs; quite the opposite, in fact, it mandates them, which is why there are no multi-tier domestic tariffs currently being marketed.

Zero standing charge tariffs were available until the middle of last year, but since then prices have risen and electricity companies have not been willing to swallow the fixed costs associated with second homes and holiday homes which might only be using a few hundred kWh per year.

melbury

Our electricity standing charge has gone up by 101% today, appalling.

Mstty

And what did we all do about it?

We have known the figures for months.....did we protest and blockade the roads bringing the country to a standstill like the French would have done.

Did we all write letters to the secretary for energy and Ofgem?

Did we all do eff all and wait for it to happen then moan after the fact....✅

Ah Englishmen and Englishwomen at their very finest🤣🤣

Ultrasonic

Kostandia said:

And I just saw Rishi Siny-Shoes Sunak on tv saying he can't justify creating more rescue debt. But he isn't going to have difficulties paying his effing bills!!! Im just gobsmacked we aren't all revolting against the hell our politicians have created

Giving the UK government 'credit' for causing sky-rocketing global energy prices is a stretch.

Undisputedtruth

QrizB said:

Undisputedtruth said:

Unfortunately Ofgem was very much against the idea of a single tier tariff.

I think you'll find that Ofgem isn't opposed to single-tier tariffs; quite the opposite, in fact, it mandates them, which is why there are no multi-tier domestic tariffs currently being marketed.

Zero standing charge tariffs were available until the middle of last year, but since then prices have risen and electricity companies have not been willing to swallow the fixed costs associated with second homes and holiday homes which might only be using a few hundred kWh per year.

Not according to this article.

 https://www.thisismoney.co.uk/money/bills/article-10564575/Why-pay-standing-charges-energy.html

I used to be with Ebico and Green Energy UK for my electricity. Both companies provided single tier tariffs. I do recall Ofgem decided to do a consultation on single tier electricity because of their concern that higher energy users were subsidising lower energy users. 

Single tier electrictricity was no longer attractive after the Ofgem consultation and their meddling. In fact, it wasn't worth my while in jumping from standing charges to none in 2020 when I was with Ebico.

QrizB

Undisputedtruth said:

QrizB said:

Undisputedtruth said:

Unfortunately Ofgem was very much against the idea of a single tier tariff.

I think you'll find that Ofgem isn't opposed to single-tier tariffs; quite the opposite, in fact, it mandates them, which is why there are no multi-tier domestic tariffs currently being marketed.

Zero standing charge tariffs were available until the middle of last year, but since then prices have risen and electricity companies have not been willing to swallow the fixed costs associated with second homes and holiday homes which might only be using a few hundred kWh per year.

Not according to this article.
https://www.thisismoney.co.uk/money/bills/article-10564575/Why-pay-standing-charges-energy.html
I used to be with Ebico and Green Energy UK for my electricity. Both companies provided single tier tariffs. I do recall Ofgem decided to do a consultation on single tier electricity because of their concern that higher energy users were subsidising lower energy users.

OK, can you show me a current tariff that isn't single-tier?

Undisputedtruth

QrizB said:

OK, can you show me a current tariff that isn't single-tier?

What I mean by a single tier is a tariff without standing standing charges.