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Electricity and Gas Standing Charges
A1anM1
Posts: 2 Newbie
I know the unit price of my electricity and gas are rising, but why has my standing charge gone up by over 100%
2
2
Ask An Expert: Answered · Last Updated
Hi AlanM1
Thanks to GingerTim – the link they shared will take you to the answer to your question, but in short, when we put this question to Ofgem it told us it was due to:
- The cost of moving everyone whose firm went bust to new suppliers.
- Increases in fixed network costs (the cost of maintaining the energy networks).
- An increase in policy costs (such as green levies and the rise in the warm home discount rebate).
Martin has called for Ofgem to shift the burden in the price cap away from the standing charge and the regulator is currently consulting on changes to the methodology. We expect to have an answer on this before the new cap is announced.
Hope this helps!
Thanks to GingerTim – the link they shared will take you to the answer to your question, but in short, when we put this question to Ofgem it told us it was due to:
- The cost of moving everyone whose firm went bust to new suppliers.
- Increases in fixed network costs (the cost of maintaining the energy networks).
- An increase in policy costs (such as green levies and the rise in the warm home discount rebate).
Martin has called for Ofgem to shift the burden in the price cap away from the standing charge and the regulator is currently consulting on changes to the methodology. We expect to have an answer on this before the new cap is announced.
Hope this helps!
This question and answer came about during the MSE Forum 'Ask An Expert' event on 11 August 2022. It won't be updated so may no longer be correct at time of reading. This info does not constitute financial advice: always do your own research on top to make sure it's right for your circumstances.
Comments
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Hi AlanM1
Thanks to GingerTim – the link they shared will take you to the answer to your question, but in short, when we put this question to Ofgem it told us it was due to:
- The cost of moving everyone whose firm went bust to new suppliers.
- Increases in fixed network costs (the cost of maintaining the energy networks).
- An increase in policy costs (such as green levies and the rise in the warm home discount rebate).
Martin has called for Ofgem to shift the burden in the price cap away from the standing charge and the regulator is currently consulting on changes to the methodology. We expect to have an answer on this before the new cap is announced.
Hope this helps!2
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