Time to ditch the standing charge?

MattMattMattUK

Astria said:

Ok, lets roll it into the unit charge, the first 25 kWh/month will cost you £1, with a minimum charge per month of £20. Additional kWh will cost 30p.

Ofgem banned tiered rates a few years ago, it would also benefit people with second homes/holiday homes etc. who would still be connected to the network.

Astria said:

I'm sure we've done that before and people were confused about it, unable to compare tariffs easily, and demanded it be separated to make things easier.

What it appears is that in general people are still unable to understand energy regardless of how simple we make it. 

Mstty

This is a very tough one to agree either way. Penalise low energy users (which will inherently become the people least able to afford the new energy costs such as low income and elderly) or have the current situation that if you have gas and electricity the standing charges are costing a minimum of £20 per month before you use anything.

There is no easy answer here. 

savers_united

If you lost power to your home would you accept an answer that it will be a few days until we fix it as your a low user your low priority, we have to give priority those high users who pay more towards network costs and the funding we receive.

If your energy company went bust would you accept that you may not get back all your credit and could be without a supply for a couple of weeks whilst transfers are arranged. 

Would you accept that in future you would not have access to cheaper green energy having not contrubuted towards. 

Would you accept not having the option of a new smart meter or being back of the queue for one. 

Would you feel ok not contributing equally to the social funds for warm home discounts etc. 

[Deleted User]

Hi,

used to be many years ago the first so many units were charged at a dearer rate, so now, just accept that standing charge is just 2/3 extra units a day.

Olinda99

Petrol forecourts don't have a standing charge to cover their fixed costs such as business rates, heating and lighting etc. They don't have a standing charge to cover the costs of tanker delivery. You just pay per litre of fuel bought.

QrizB

Olinda99 said:

Petrol forecourts don't have a standing charge to cover their fixed costs such as business rates, heating and lighting etc. They don't have a standing charge to cover the costs of tanker delivery. You just pay per litre of fuel bought.

By the same measure, you don't have to buy your petrol from the same chain of stations and petrol stations don't have to pay a fixed cost per customer to their suppliers, even if that customer buys no petrol.

It's not a great comparison.

Astria

Olinda99 said:

Petrol forecourts don't have a standing charge to cover their fixed costs such as business rates, heating and lighting etc. They don't have a standing charge to cover the costs of tanker delivery. You just pay per litre of fuel bought.

Yes, that is why if you charge your vehicle at a public charging point it's typically more expensive than charging it at home, the exact cost depends on the tariff and charging speed. Some also charge a "connection charge" which is similar to a standing charge, as you are charged an additional fee each time you top up your vehicle.

Thrugelmir

Olinda99 said:

Petrol forecourts don't have a standing charge to cover their fixed costs such as business rates, heating and lighting etc. They don't have a standing charge to cover the costs of tanker delivery. You just pay per litre of fuel bought.

Bet you don't have a petrol forecourt on your front drive though. 

jimjames

Water bills have the same system with standing charge and may or may not be metered depending on the area. Exactly the same situation with a fixed connection to properties to provide a service and pay for the maintenance of the network.

Olinda99 said:

Petrol forecourts don't have a standing charge to cover their fixed costs such as business rates, heating and lighting etc. They don't have a standing charge to cover the costs of tanker delivery. You just pay per litre of fuel bought.

In that situation the standing charge is essentially VED, insurance and servicing. You pay VED/insurance regardless of use, servicing will be less but under your control.

Thrugelmir

wakeupalarm said:

It's becoming more and more a poll tax with no account taken of customers ability to pay for an essential utility.

Much of the tax I pay is spent on things that I don't use and in some cases disagree with.  That's how it is. If people wish to challenge the status quo. Then difficult discussions have to be had as to what's important. As free handouts and taxing the rich aren't the solutions. Everybody has to make a contribution in their own way.