High standing charges for gas and electric.

pensioner2

How can  the huge daily charge for having a metre in your home be justified, especially as it has recently doubled?     Imagine the outcry if supermarkets charged an entrance fee and then a charge for working out your bill and another charge because they had to pay to have their stock delivered and clean the store.

Xbigman

Here we go again.

molerat

Sticky at the top of the board explaining the reason

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

pensioner2

Does not answer the questions.     All businesses have expenses and charge for the goods or services they provide. Only energy firms are able to charge customers for providing them with the means to calculate their bill even if they hardly use any energy.  The charge should be fairer and proportional to the energy used.

MattMattMattUK

pensioner2 said:

Does not answer the questions.

It explains why the standing charge increased and what costs it covers.

pensioner2 said:

All businesses have expenses and charge for the goods or services they provide. 

They do. Most businesses charge what they want/can and if the survive they survive, if they do not they go bust. However energy pricing is regulated, they can only charge what the regulator allows.

pensioner2 said:

Only energy firms are able to charge customers for providing them with the means to calculate their bill even if they hardly use any energy.

They do not charge you for "the means to calculate their bill" the Standing Charge is not a charge for having a meter, it is a charge for having a connection direct to your home, the same also applies with water/sewerage. Home telecoms connections also usually have a monthly fixed charge and some will have additional usage charges based on their business model. If you do not wish to pay the Standing Charge then you have the choice to be disconnected from the energy network.

pensioner2 said:

The charge should be fairer and proportional to the energy used.

The charge is "fair and proportional". The cost of the network is charged as the Standing Charge, if you are connected to the network then you pay the charge. Energy is charged proportional to usage as it has a generation/production cost. 

pochase

The standing charges cover cost that needs to be paid before you even use the first KWh of energy.

For example wiring to get power to your house, gas pipes, green levies, cost of the SOLR process, repairs to damaged infrastructure after storms....

This cost is the same for each user of energy, no matter how much he uses within an energy region (there are difference in the standing charges between the regions). Why do you think users who use more energy should pay the cost for your house to be connected? 

This pops up at least once a week with people complaining that it is unfair that they have to pay their share for the infrastructure event so they use less energy.

Luckily Ofgem sees that the correct way that there is cost that has to covered by everybody alike through the standing charges. and the personal energy use, so this are moot discussions.

EssexHebridean

pensioner2 said:

Does not answer the questions.     All businesses have expenses and charge for the goods or services they provide. Only energy firms are able to charge customers for providing them with the means to calculate their bill even if they hardly use any energy.  The charge should be fairer and proportional to the energy used.

Indeed. If you go to the supermarket, pick out your shopping yourself, and carry it home, you pay only for the goods you purchase. If you arrange for the supermarket to pick out your shopping, and you go to the store and collect it, you pay for the price of the goods, plus a charge for the picking and handling. And if you ask the supermarket to not only pick out your shopping for you, but also to deliver it to your door, you pay a charge that reflects that - "standing charge" for the cost of that work being done, if you like. People rarely grumble about this charging, yet everyone complains when energy co's want to charge people for the cost of delivering THEIR service. 

bristolleedsfan

pochase said:

Luckily Ofgem sees that the correct way that there is cost that has to covered by everybody alike through the standing charges. and the personal energy use, so this are moot discussions.

Maybe on this subject might be worth holding breath https://www.thesun.co.uk/money/18830298/major-overhaul-standing-charges-help-slash-energy-bills/

MWT

bristolleedsfan said:

pochase said:

Luckily Ofgem sees that the correct way that there is cost that has to covered by everybody alike through the standing charges. and the personal energy use, so this are moot discussions.

Maybe on this subject might be worth holding breath https://www.thesun.co.uk/money/18830298/major-overhaul-standing-charges-help-slash-energy-bills/

Good to see 'The Sun' up to their usual standards on accuracy...

pochase

Interesting also the two lines before your quote

For example, British Gas customers in the south west of England pay 49p a day for electricity, while the standing change is just 31p in London.

Meanwhile, EDF has a standing charge of 47.67p for customers in Scotland and 36.11p for those in the East of England.

They are making it look as if the supplier charge different standing charges without saying that it is the case.  Also using rates excluding VAT here.

pensioner2

 Some very confused replies.   Pay the standing charge or be disconnected [the cost of making the connection has already happened].     In normal times there is competition to set the price.        I maintain that it is unfair that a single pensioner using £300 of electricity a year is required to pay the same standing charge [probably more than £300] as a large family using £3000 of electricity.    The comparison with a supermarket providing extra services is not valid. The supermarket pays for its goods to be delivered etc. and the cost of replacing the tills.    I do not have to pay an extra standing charge to a media  or phone company.   The standing charge cannot be justified unless there is competition from suppliers only charging for energy usage.