standing charges gone up by more than 100%

Ultrasonic

pochase said:

That was an ironic response to 

It makes me angry that electricity companies are making a profit out of people's misery. There is no need to increase the standing charge like this, and supprised the Government are allowing this.

Sorry, not at all obvious to me  .

MattMattMattUK

PRAISETHESUN said:

pochase said:

Astria said:

GingerTim said:

 It will go up again next April, too, when the costs of the loan-not-loan are added.

Don't forget October!

There are no standing charge increases for October that I am aware of?

The next "planned" one is the April one, adding the 40£ per year to pay of the loan/not loan for the next 5 years.

The Ofgem price caps typically gets reviewed every 6 months, in Apr and Oct. I suspect this is what they are referring to as providers will no doubt take the opportunity to increase prices to whatever the new cap ends up being.

In all likelihood the standing charge will go down in October, the methodology is fairly clear that it is there to cover fixed costs and the batch of previous SoLR costs will drop out of the calculation, so unless we have another large wave of insolvent energy providers before the autumn then it will drop a not insignificant amount, probably by around 10p a day. The unit prices will rise though, how much is anyone's guess really as there are too many variables between now and the end of the reference period. 

MattMattMattUK

happyman70 said:

I am really puzzled how and why my electricity company is charging me more than 100% in standing charges compared to last year. Last year my standing charge was 21.90p per day and now it is 48.53p. My united price has gone from 16.17p per kWh to 27.36p per kWh.

It makes me angry that electricity companies are making a profit out of people's misery. There is no need to increase the standing charge like this, and supprised the Government are allowing this.

I read an article that said due to the energy farms some companies could have more energy than they need next year. Forget what online news outlet it was now, but that makes no sense.

We were told in the early days that Green energy would benefit us all financially and we should support it but it has never benefited us and instead we are paying for it with high energy bills.

Has anyone seen their bill jump up so high for electricity

The government effectively set the higher standing charge, via the mandate it gives to Ofgem. They are not profiteering, thinking that they are demonstrates a lack of understanding of the energy market.

Ultrasonic

MattMattMattUK said:

PRAISETHESUN said:

pochase said:

Astria said:

GingerTim said:

 It will go up again next April, too, when the costs of the loan-not-loan are added.

Don't forget October!

There are no standing charge increases for October that I am aware of?

The next "planned" one is the April one, adding the 40£ per year to pay of the loan/not loan for the next 5 years.

The Ofgem price caps typically gets reviewed every 6 months, in Apr and Oct. I suspect this is what they are referring to as providers will no doubt take the opportunity to increase prices to whatever the new cap ends up being.

In all likelihood the standing charge will go down in October, the methodology is fairly clear that it is there to cover fixed costs and the batch of previous SoLR costs will drop out of the calculation, so unless we have another large wave of insolvent energy providers before the autumn then it will drop a not insignificant amount, probably by around 10p a day. The unit prices will rise though, how much is anyone's guess really as there are too many variables between now and the end of the reference period. 

Are you sure about what period of time the SC needs to be elevated to recoup the costs of last year's SOLR failures? I don't recall seeing that mentioned before but, completely naively, I'd rather assumed it was longer than 6 months? I'd have expected more publicity for the notion here if the SC really is likely to drop significantly in October.  

MattMattMattUK

Ultrasonic said:

MattMattMattUK said:

PRAISETHESUN said:

pochase said:

Astria said:

GingerTim said:

 It will go up again next April, too, when the costs of the loan-not-loan are added.

Don't forget October!

There are no standing charge increases for October that I am aware of?

The next "planned" one is the April one, adding the 40£ per year to pay of the loan/not loan for the next 5 years.

The Ofgem price caps typically gets reviewed every 6 months, in Apr and Oct. I suspect this is what they are referring to as providers will no doubt take the opportunity to increase prices to whatever the new cap ends up being.

In all likelihood the standing charge will go down in October, the methodology is fairly clear that it is there to cover fixed costs and the batch of previous SoLR costs will drop out of the calculation, so unless we have another large wave of insolvent energy providers before the autumn then it will drop a not insignificant amount, probably by around 10p a day. The unit prices will rise though, how much is anyone's guess really as there are too many variables between now and the end of the reference period. 

Are you sure about what period of time the SC needs to be elevated to recoup the costs of last year's SOLR failures? I don't recall that mentioning before but, completely naively, I'd rather assumed it was longer than 6 months? I'd have expected more publicity for the notion here if the SC really is likely to drop significantly in October.  

I remember reading that the recovery period for the SoLR process was the next six months, however I have just done some Googling and I am wrong. The period from the start of SoLR is supposed to be up to 36 months, the the funds recovered over a maximum window of 24 months (technically eight quarters). There also appears to be some uncertainty as the government might amend the process to recover the £3 billion of cost for Bulb's special administration. In normal times it looks like the entire process would be concluded within 12 months of the SoLR being appointed, but these appear to be far from normal times.