Price Cap Standing Charges for Low Volume User

flatbadger

Hi Forum

I'm a low energy user and I've been shocked by the amount that the standing charges have / will increase when I move off of my Fixed Deal
Currently I pay £53.65 per annum in standing charges (£0.0735 per day per fuel) - This is increasing to £262.69 (£0.4475 Electric - £0.2722)
This is an annual uplift of 489% on standing charges

Why hasn't this increase % been publicized? and Why has it just been limited to the Unit Rate Increases (for me Gas up 90% - Electricity up 43%)

pochase

You cannot compare a fixed deal increase with the SVT increase. Even before the price increase the standing charges were over 20p on the old SVT, so there was already a 200% increase for you just coming off your fixed tariff to the old SVT. BTW your increase is 389%, not 489%. You are paying 4.89 times what you paid before.

You had a discount of 70% on your fixed tariff, when the tariff ends, also the discount ends and you go back to what everybody else on SVT pays.

The increase on the gas standing charge is minimal, it is the increase on electricity that is a lot from old SVT to new SVT.  Here is the explanation why

https://www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/?_ga=2.75533843.760036830.1646482855-154881808.1640942753&_gl=1*18fars5*_ga*MTU0ODgxODA4LjE2NDA5NDI3NTM.*_ga_X74CWQS9F0*MTY1MjA4MDI3NS40OC4xLjE2NTIyNjQxNzIuMA..#accordion-content-0336620245-1

Your old tariff seems to have had a very low standing charge, but in comparison high unit rates. Most coming of a fixed tariff looking at unit rates more than doubling, even trebling for gas. 

The time for low standing charges is gone, there are hardly any differences between the suppliers now.

QrizB

Welcome to the forum.

There is a sticky article about standing charges at the top of the forum listing:

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

In your particular case, the standing charges on your previous fixed tariff were subsidised by your supplier. This was their business decision when setting the fixed tariff rates and you have benefitted from it. You are now paying a more representative standing charge.

facade

flatbadger said:

Why hasn't this increase % been publicized? and Why has it just been limited to the Unit Rate Increases (for me Gas up 90% - Electricity up 43%)

None of the increases have been publicised. The only thing publicised is that some imaginary family living in a brand new fully insulated house will see an increase of 53% to their total bill.

Someone took the decision that the populace are incapable of processing what the individual capped prices would mean, so although they are available via ofgem or your supplier they are not publicised.

This is backfiring somewhat as millions of people for whom a 53% increase would be a pleasant dream are up in arms because their DD has doubled or tripled.