Standing charge

Montybell1

The standing charges set by ofgem are just a price energy suppliers are not allowed to go over they could offer lower charges but why would they when they can charge the maximum there allowed to, it’s a joke 

GingerTim

https://forums.moneysavingexpert.com/discussion/6339555/mse-update-why-has-the-standing-charge-for-electricity-nearly-doubled#latest

Montybell1

Out of the 3 points you make infrastructure, green levies, the only extra one is people being switched , millions of people switch every year but they don’t massively put standing charge up , it’s not like they have to lay a new pipe it’s a simple administration input , plus these extra people or using and paying for energy it’s not like we’re subsiding them !!

GingerTim

I think you've misunderstood the switching of people from bust companies, it's not a simple switch from one company to another as happened every day before the present crisis.

The supplier of last resort process affected (and protected) millions of people and so was massively expensive, added about 16p to the electricity standing charge, and we will be paying for it for several years. 

The standing charge will go up further in October to pay for the loan-not-loan of £200 which everyone is due to receive.

Montybell1

thanks gingertom for your explanation, it’s a pity our energy companies   don’t explain all this to us 

pochase

GingerTim said:

The standing charge will go up further in October to pay for the loan-not-loan of £200 which everyone is due to receive.

I believe we will only start paying back April 2023, not that it makes a huge difference.

GingerTim

pochase said:

GingerTim said:

The standing charge will go up further in October to pay for the loan-not-loan of £200 which everyone is due to receive.

I believe we will only start paying back April 2023, not that it makes a huge difference.

Apologies, of course you're right - and I've mixed it up with when the £200 is distributed!

pochase

Wouldn't it be fun if we had to start paying back before we even get the money? Nothing is impossible. 

TC56_803_9

GingerTim said:

The supplier of last resort process affected (and protected) millions of people and so was massively expensive, added about 16p to the electricity standing charge, and we will be paying for it for several years. 

16P per customer in the UK is £58.40 extra per customer per year.  Given that not all customers were with companies that went bust and that this is a 6 month on 6 month rise I would like to see what the total revenue generated by this increase is per customer picked up from a bankrupt supplier.  It has to be of the order of £150 per customer. 

how does this compare to figures for this function historically

Which begs the question - was the regulator asleep at the wheel?

Because my biggest % increase is not in consumption costs but in standing charge.  Electricity only supply (we have no gas)up from 24.95 to 48.26.p/day

Ginger are you able to shed any light on this?

The answers from the regulator to Martin Lewis are condescending in the extreme.

TC56_803_9

GingerTim said:

The standing charge will go up further in October to pay for the loan-not-loan of £200 which everyone is due to receive.

Given the costs of "rescuing"customers from bankrupt companies - I dread to think how much we will all have to pay for borrowing £200 once the companies have put on their charges and the regulator has added their bit

£300 ? 

Is there any way of opting out of it without still paying for everyone else?

Again Ginger are you able to shed any light on this?

Montybell1

If we really do have to pay for everyone being moved why not put it on usage and spread the costs over a longer time rather than upping standing charge to get there money back quicker