Electric and gas standing charges

Jim5000

Can someone explain why the daily standing charges for electricity and gas have increased so much. My fixed term contract finished yesterday with Shell Energy and they have moved me onto their only other variable tariff, my standing charges were, electric 17.1 and gas 11.28 they are now 48.91 and 27.22 respective. I can understand the increase in kWh but the increase in these other charges are extortionate...

frugalmacdugal

Hi,

have a read HERE.

Gerry1

Welcome to the forum.  It's an FAQ at the top of the page.

pochase

For an explanation why the electricity standing charge increased see here

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

Gas has only increased because the standing charge on the fix was lower than on the old SVT, in other words you had discounted standing charges on your fixed tariff.

TheMilkmansDad

it's been explained and discussed/argued many times. I believe there us a post explaining all the details at the top of this page.

metrobus

So come October are the standard charges going to continue increasing? Or will it just be Kwh charge only.

Since the Ofcom replies in the links above stated the reason for the huge recent rises in SC I wonder if they will invent more 
or just increase the cost of the units you actually use.

Low users are currently subsidising the high users to a large degree.

Seems unfair that someone in a 1 room bedsit pays exactly the same SC as a family of 7 in a 5 bedroom house.

Obviously high users will disagree.

MattMattMattUK

metrobus said:

So come October are the standard charges going to continue increasing? Or will it just be Kwh charge only.

No one knows for sure, but current predictions are that there will be a modest rise in the Standing Charge, roughly in line with inflation. The kWh charge will rise in line with the published methodology.

metrobus said:

Since the Ofcom replies in the links above stated the reason for the huge recent rises in SC I wonder if they will invent more 
or just increase the cost of the units you actually use.

They did not "invent" any of the previous reasons, they were all known in advance and the methodology is available for all to see.

metrobus said:

Low users are currently subsidising the high users to a large degree.

Seems unfair that someone in a 1 room bedsit pays exactly the same SC as a family of 7 in a 5 bedroom house.

Obviously high users will disagree.

Low users are not subsidising high users, high users are not subsidising low users, that is the point of the standing charge. The Standing Charge covers the network costs, every household connected to the network it pays it (it also has the social, green and SoLR costs included, which in theory we all benefit from). If there were no standing charges, or lower standing charges and higher kWh charges then average and higher users would be subsiding low users. If there were higher standing charges and lower kWh charges the low users would be subsiding average and higher users. 

EssexHebridean

metrobus said:

So come October are the standard charges going to continue increasing? Or will it just be Kwh charge only.

Since the Ofcom replies in the links above stated the reason for the huge recent rises in SC I wonder if they will invent more 
or just increase the cost of the units you actually use.

Low users are currently subsidising the high users to a large degree.

Seems unfair that someone in a 1 room bedsit pays exactly the same SC as a family of 7 in a 5 bedroom house.

Obviously high users will disagree.

I'm a low user and I disagree...

bristolleedsfan

OFGEM  did move costs that were previously paid for by unit rate to standing charge

bristolleedsfan

https://twitter.com/MartinSLewis/status/1527248734140104706

Ultrasonic

EssexHebridean said:

metrobus said:

So come October are the standard charges going to continue increasing? Or will it just be Kwh charge only.

Since the Ofcom replies in the links above stated the reason for the huge recent rises in SC I wonder if they will invent more 
or just increase the cost of the units you actually use.

Low users are currently subsidising the high users to a large degree.

Seems unfair that someone in a 1 room bedsit pays exactly the same SC as a family of 7 in a 5 bedroom house.

Obviously high users will disagree.

I'm a low user and I disagree...

Same here. 

@metrobus: to save you searching my annual usage from March 2020 to March 2021 was 3202 kWh of gas and 1385 kWh of electricity.