Price cap and Electricity standing charges

1961John

In April the price cap was increased and at that time they said that the electricity standing charge went up (~200%) to accommodate the costs of companies that went bust.

In the next price cap (Sept / Oct) will the standing charge remain the same? It is only the cost of the fuel that is going up and not the cost to cover liquidated companies nor the distribution costs. If this is the case then they seem to be indicating that the cost of fuel (/Therm) is going to increase by 200% from the current rate. This is not what the statistics of fuel prices illustrate.

I guess they will make an argument to further increase the standing charge!!!! and push up the /Therm cost as well. 

A double whammy to all customers.

GingerTim

It's generally thought there isn't going to be a significant increase to the standing charge at this review, and OFGEM said recently they were 'looking at' the charge. Whether that translates to anything, we will see next week.

wrf12345

Liz Truss is well aware of the standing charge issue and the huge rip-off of consumers by the energy companies, it will be an interesting test of her mettle whether she does anything about it, top Ofgem exec has already resigned over this and other issues with regards to the abject contempt with which consumers (and voters!) have been treated.

GingerTim

Liz Truss couldn't give the proverbial about standing charges.

wakeupalarm

GingerTim said:

It's generally thought there isn't going to be a significant increase to the standing charge at this review, and OFGEM said recently they were 'looking at' the charge. Whether that translates to anything, we will see next week.

Ofgem have looked at the standing charge and have already ruled out changes to standing charges
https://www.moneysavingexpert.com/news/2022/08/ofgem-rules-out-shifting-the-costs-of-supplier-failure-out-of-th/

GingerTim

wakeupalarm said:

GingerTim said:

It's generally thought there isn't going to be a significant increase to the standing charge at this review, and OFGEM said recently they were 'looking at' the charge. Whether that translates to anything, we will see next week.

Ofgem have looked at the standing charge and have already ruled out changes to standing charges
https://www.moneysavingexpert.com/news/2022/08/ofgem-rules-out-shifting-the-costs-of-supplier-failure-out-of-th/

Ta, hadn't seen that!

pochase

Thanks, I missed this.

[Deleted User]

wrf12345 said:

Liz Truss is well aware of the standing charge issue and the huge rip-off of consumers by the energy companies, it will be an interesting test of her mettle whether she does anything about it, top Ofgem exec has already resigned over this and other issues with regards to the abject contempt with which consumers (and voters!) have been treated.

We must be reading different quality newspapers:

‘Christine Farnish resigned from the watchdog after it allowed suppliers to pile additional costs onto customers this winter, contributing to an expected surge in the cap on gas and electricity bills from £1,971 to £3,523 in October.

Ms Farnish said that Ofgem had not in her view “struck the right balance between the interest of consumers and the interests of suppliers”. 

She added that the regulator had an “overarching legal duty to protect the interests of consumers”, telling the Times: “I resigned from the Ofgem board because I could not support a key decision to recover additional supplier costs from consumer bills this winter.” (Source Daily Telegraph)

Nothing whatsoever to do with standing charges or other issues. Ofgem revised the Cap calculation methodology to reduce the possibility of future supplier failures.

PS: the lady concerned was not a top Ofgem Exec. She was a non-executive Director on the Ofgem Board.