The new price cap standing charges

QrizB

Undisputedtruth said:

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.

That explains our misunderstanding, then.

Northern_Wanderer

QrizB said:

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

Utilita if you are unlucky enough to move in where they have the supply. They charge x amount for first x units then a lower rate for further units each day. There is no s/C. No idea how you can plan for that or compare tarrifs.

pochase

Northern_Wanderer said:

QrizB said:

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

Utilita if you are unlucky enough to move in where they have the supply. They charge x amount for first x units then a lower rate for further units each day. There is no s/C. No idea how you can plan for that or compare tarrifs.

Take the difference between the higher first units and the lower rate units, multiply by the number of units that are charged at the higher rate and you have the standing charge. 

merchcon55

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.

I recently found some rather old Electricity and Gas Bills from "Norweb" where there was 2 tier pricing - the first say 200KWH per quarter were charged at a much higher rate than the remaining KWH.

Was this a better way of charging than Standing Charge? I'm guessing it worked out to pretty much the same. 

QrizB

merchcon55 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.

I recently found some rather old Electricity and Gas Bills from "Norweb" where there was 2 tier pricing - the first say 200KWH per quarter were charged at a much higher rate than the remaining KWH.
Was this a better way of charging than Standing Charge? I'm guessing it worked out to pretty much the same. 

It works out the same unless you use less than (per your example) 200kWh per quarter.

Ofgem decided these tariffs were confusing and restricted consumers' ability to compare effectively, and so banned them.

Northern_Wanderer

QrizB said:

Ofgem decided these tariffs were confusing and restricted consumers' ability to compare effectively, and so banned them.

I agree it's confusing but if they are banned, why is Utilita still using them?

QrizB

Northern_Wanderer said:

QrizB said:

Ofgem decided these tariffs were confusing and restricted consumers' ability to compare effectively, and so banned them.

I agree it's confusing but if they are banned, why is Utilita still using them?

I suspect there's a concession, either to Utilita specifically or for pre-payment tariffs in general.

I'd need to dig into Ofgem's publications to confirm that, and I'm not that bothered! If you find out, could you let us know?

Northern_Wanderer

QrizB said:

Northern_Wanderer said:

QrizB said:

Ofgem decided these tariffs were confusing and restricted consumers' ability to compare effectively, and so banned them.

I agree it's confusing but if they are banned, why is Utilita still using them?

I suspect there's a concession, either to Utilita specifically or for pre-payment tariffs in general.

I'd need to dig into Ofgem's publications to confirm that, and I'm not that bothered! If you find out, could you let us know?

I'm not that bothered either! I'm not with Utilita. Don't worry about it. Thanks.

wild666

melbury said:

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

My standing charge went up 84% from 26.45p to 48.65p. 18.6p is due to OFGEM recouping the money they have paid out due to suppliers going bust but this 18.6p I don't think will ever be taken off the SC when they have recovered the money. 
I would sooner pay 1p or 2p per day more on the SC so that OFGEM has the money to pay out the companies who took over the supplies than be hit with an 18.6p per day increase on the SC that possibly will never be removed from the SC. I also think that the  p per day will never be removed after the government has claimed back the £200 by April 2028.

Undisputedtruth

QrizB said:

Undisputedtruth said:

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.

That explains our misunderstanding, then.

Upon reflection, I think I could have been more clearer in what I said.

Northern_Wanderer said:

QrizB said:

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

Utilita if you are unlucky enough to move in where they have the supply. They charge x amount for first x units then a lower rate for further units each day. There is no s/C. No idea how you can plan for that or compare tarrifs.

One way to compare the Utilita tariff with other tariffs is to have your own benchmark of energy usage on a daily basis. Then project the energy usage and cost on a year basis to compare with other tariffs. Another thought, it doesn't really matter if your energy usage is low as you are still making a saving from the lack of a standing charge. I spoke to Utilita to find out more about the tariff last week but they're only taking on customers with smart meters. I had told them I will never get myself a smart meter. Mostly due to dynamic pricing in the future.