STANDING CHARGES STEALTH TAX

epsom

The standing charge is NOT legally required and is at the energy companies discretion.

I spoke to my energy company about this and was told that the standing charge covers maintenance to meters (the actual meters are cheap, between £15 and £50 appx), reading of the meters and engineer callouts...... smart meters may be a bit more.

I have been at my house for 37 yrs and NEVER have I had a replacement meter, a meter read or any maintenance done on either my gas or electric pre-payment meters. The same goes for most of the people around me.

An article from FORBES ADVISOR, 2021:

""""Who sets gas and electricity standing charges? Your energy supplier sets the level of gas and electricity standing charges that you have to pay.

Energy regulator Ofgem ruled that energy tariffs no longer need include a standing charge following recommendations by the Competition and Markets Authority back in 2016. However, the vast majority of energy suppliers continue to add them as part of the overall energy cost. When you compare energy deals at a comparison website, the price you are quoted will include standing charges for both gas and electricity, as well as the energy itself.""" The advisor at my energy company sent a summary of my complaint, and this was one of his sentences: ""I informed you that although not a legal requirement, charging for daily standing charges is a common practice with utility companies.

""" He therefore reiterates what I and Ofgem said in 2021---""that energy tariffs no longer need include a standing charge following recommendations by the Competition and Markets Authority back in 2016""

I am a very low user of gas, and a debt has been built up over the last few years BECAUSE I AM PAYING MORE FOR THE STANDING CHARGE THAN I DO FOR THE GAS! If you take 37 years at £10 month, that comes to £4,440----even if you halve that, it is still £2,220. That is for ONE of the meters---add the other and you double the amount.

The days of meter reading etc are redundant and the other excuses said by my energy company no longer exist. It is a STEALTH TAX and discriminates against low users.

I can think of no one else who charges a standing charge--except for water, and they make a small annual charge. As the standing charge is NOT a legal requirement, this should be looked into by Ofgem ( it won't be) and the Ombudsman---AND IT SHOULD BE SCRAPPED!

I would much rather pay a higher unit charge than a standing charge---then I could pay for WHAT I USE..

QrizB

Not a scam.

Read the sticky thread.

MWT

If only we had all realised sooner that the standing charge only paid for the meter and nothing else such as the rest of the national grid, the social charges for things like the Warm Home Discount, the protection of customer balances at the failed energy suppliers etc. etc. ... 

Do please read the explanations about the standing charge at the top of this group then think again...

TheMilkmansDad

Suggest OP doesn't pay that element of his bill, see how they get on....

Jyana

An article from FORBES ADVISOR, 2022:

Gas And Electricity Standing Charges – Explained 

Standing charges cover the cost to your supplier of actually delivering energy to your property. In that respect, they are similar to the rental charges you pay for a telephone landline. 

As such, they must be paid whether or not you use any gas or electricity, which is why you will receive a bill even if your property was unoccupied during the period in question.

What are gas and electricity standing charges?

Gas and electricity standing charges are the fees your energy supplier imposes for giving you access to energy – they help pay for the UK’s energy distribution networks. Added to almost all energy bills, they are generally fixed at a flat daily rate.

Energy suppliers use standing charges to cover costs such as:

*maintaining the energy networks, wires, and pipes that carry gas and electricity to your home

*connecting your home to the energy network

*conducting meter readings.

The new standing charge caps introduced in April 2022 also cover the administrative costs of switching failed energy companies’ customers to new suppliers.

According to research by the charity Fuel Poverty action, these administrative costs account for £68 of the £75 annual standing charge hike. 

As a consequence, saving energy can only reduce your bills up to a point. Cutting energy usage reduces the amount of gas or electricity you have to pay for, but has no impact on rising standing charges, which remain the same regardless of the energy you use.

Robin9

Can you post photos of your meter please

pochase

No supplier is forced to charge you a standing charge. If they don't charge it to you they have to pay it out of their pocket.

So you only have to find a supplier who does not charge a standing charge and your problem is solved. Only one that comes to my mind is Utilitia. Of course they charge higher unit rates, they add 50% of the daily standing charge to each of the first 2 KWh. 

So if your usage is below 2KWh per day you have a winner. Might work out nicely with gas if you don't use any gas in summer.

The standing charges are not just for your meter. 

Other things, better main things covered by the standing charges

• maintaining the energy networks, wires, and pipes that carry gas and electricity to your home 
• connecting your home to the energy network 
• conducting meter readings.
• cost of SOLR process (electricity only)

[Deleted User]

pochase said:

No supplier is forced to charge you a standing charge. If they don't charge it to you they have to pay it out of their pocket.

So you only have to find a supplier who does not charge a standing charge and your problem is solved. Only one that comes to my mind is Utilitia. Of course they charge higher unit rates, they add 50% of the daily standing charge to each of the first 2 KWh. 

So if your usage is below 2KWh per day you have a winner. Might work out nicely with gas if you don't use any gas in summer.

The standing charges are not just for your meter. 

Other things, better main things covered by the standing charges

• maintaining the energy networks, wires, and pipes that carry gas and electricity to your home 
• connecting your home to the energy network 
• conducting meter readings.
• cost of SOLR process (electricity only)

Good in theory: (from The Utilita Website)

Something is not right.

We’re sorry – we’re unable to continue with your switch online right now. The only quote available is for our Smart Energy tariff which has variable prices. This means prices change when Ofgem changes the level of the price cap (including if the price cap increases again). Suppliers and money-saving journalists are all advising people to sit tight with their current energy supplier until things change and we agree. However, if you’d still like to speak to us about joining, call our team today on 01414 731 538. Thank you

Section62

MWT said:

If only we had all realised sooner that the standing charge only paid for the meter and nothing else such as the rest of the national grid, the social charges for things like the Warm Home Discount, the protection of customer balances at the failed energy suppliers etc. etc. ... 

Do please read the explanations about the standing charge at the top of this group then think again...

To be fair to the OP, it is the CSA at the energy supplier who needs to read the explanations and think again...

Customers should be able to rely on the accuracy of the information energy companies give them.

MattMattMattUK

Section62 said:

MWT said:

If only we had all realised sooner that the standing charge only paid for the meter and nothing else such as the rest of the national grid, the social charges for things like the Warm Home Discount, the protection of customer balances at the failed energy suppliers etc. etc. ... 

Do please read the explanations about the standing charge at the top of this group then think again...

To be fair to the OP, it is the CSA at the energy supplier who needs to read the explanations and think again...

Customers should be able to rely on the accuracy of the information energy companies give them.

I am not sure the now defunct Child Support Agency will be much help

The information is provided by energy providers and that is standing charge and unit charge. Technically, according to their license they do not need to charge either a standing charge or a unit rate, or even charge at all, although they would go bust very quickly if they did not. 

As usual with these kind of people the OP completely misunderstands the standing charge, the regulatory framework and the nature of trying to run a profitable business.

DE_612183

meters need to be recertified on a regular basis - I vey much doubt it's over 37 years old.

and that doesn't alter the fact that the premiss of your argument is totally flawed. 

Money from S/c goes towards the distribution costs - provided by companies other than your supplier anyway.

The Meters (Certification) Regulations 1998 (legislation.gov.uk)