the elephant in the room?

Mstty

Although this is obviously yet another standing charge thread there is one interesting point.

The OP believed vat to be 20% on energy and when it is mentioned that the Government may scrap energy VAT I wonder how many think that will be 20% off their bill🤔

Sea_Shell

Mstty said:

Although this is obviously yet another standing charge thread there is on interesting point.

The OP believed vat to be 20% on energy and when it is mentioned that the Government may scrap energy VAT I wonder how many think that will be 20% off their bill🤔

...Waits for first thread asking (complaining about) that very question. 🤔😉


If it's announced, I'll give it 20 mins.

wrf12345

According to posters on this site circa a £100 of the electric s/c is to reimburse energy companies for taking on customers of bust retail energy co's as due to the mismatch of the cap to energy prices they were losing money for a few months until the cap went up in April, so that should disappear shortly. The good news is that with the average bill at around £5000, getting rid of the rest of the s/c will only add 2 percent to the unit cost and only increase the bills of those using above average energy, so it should be gone by April of next year at the latest. And, of course, the free £400 from the govn does actually exceed the total s/c paid by all for this year. 

The_Green_Hornet

Ultrasonic said:

More link a mouse than an elephant in the context of most people's bills.

The standing charge is 27% of my electricity bill but then I'm not most people.

Krakkkers

It was 57% of my last bill.

ariarnia

wrf12345 said:

According to posters on this site circa a £100 of the electric s/c is to reimburse energy companies for taking on customers of bust retail energy co's as due to the mismatch of the cap to energy prices they were losing money for a few months until the cap went up in April, so that should disappear shortly. The good news is that with the average bill at around £5000, getting rid of the rest of the s/c will only add 2 percent to the unit cost and only increase the bills of those using above average energy, so it should be gone by April of next year at the latest. And, of course, the free £400 from the govn does actually exceed the total s/c paid by all for this year. 

i think i read someone on here who worked it out as about 2 years (not including the cost of bulb)

EssexHebridean

66% of my gas bill...  

Good point on the vat thing too - I suspect you're right on a lot of folk thinking the vat element is more than it is. 

pochase

wrf12345 said:

According to posters on this site circa a £100 of the electric s/c is to reimburse energy companies for taking on customers of bust retail energy co's as due to the mismatch of the cap to energy prices they were losing money for a few months until the cap went up in April, so that should disappear shortly. The good news is that with the average bill at around £5000, getting rid of the rest of the s/c will only add 2 percent to the unit cost and only increase the bills of those using above average energy, so it should be gone by April of next year at the latest. And, of course, the free £400 from the govn does actually exceed the total s/c paid by all for this year. 

You are correct with the disappearing of the SOLR cost, Auxilione shows a reduced standing charge from April 2023.

I personally thought I had read somewhere that it was two years, but I cannot find any source here. 28.1 million households x 365 x 20p is £2.051 billion. Add to that the business accounts. Anybody an idea how much the SOLR cost was?

What is concerning is that there is now talk about the cost for Bulb administration. Seems the government wants to recover that again from the energy users. So another year of high standing charges?

Ultrasonic

The_Green_Hornet said:

Ultrasonic said:

More link a mouse than an elephant in the context of most people's bills.

The standing charge is 27% of my electricity bill but then I'm not most people.

The majority of the bill is still not the standing charge, as it also is for me as a low energy user.

Krakkkers said:

It was 57% of my last bill.

I suspect it isn't for your total annual bill.

Krakkkers

No, my spring and summer bills are basically no gas and very little electricity as my Solar panels heat my water and run my house for almost nothing.
Winter and the gas usage kicks in.