New cap price standing charge

vincent64

With the new cap of £2500 does the astronomical standing charge price come down as well. 

[Deleted User]

Nobody knows, and it isn't astronomical - it's less than 75p per day for both services.

DE_612183

probably - we are awaiting the details

MSE_James

From Martin:

https://twitter.com/MartinSLewis/status/1567852171688804357 

michaels

MSE_James said:

From Martin:

https://twitter.com/MartinSLewis/status/1567852171688804357 

More good news Liz Truss mates with swimming pools to heat as that means lower unit rates than suggested if the social levy was removed from the standing charge - ie the more you use the more you benefit from the 'freeze' not just in absolute terms but also proportionately....

Astria

michaels said:

MSE_James said:

From Martin:

https://twitter.com/MartinSLewis/status/1567852171688804357 

More good news Liz Truss mates with swimming pools to heat as that means lower unit rates than suggested if the social levy was removed from the standing charge - ie the more you use the more you benefit from the 'freeze' not just in absolute terms but also proportionately....

I do now wonder about the people who were going to cut their usage will now no longer cut their usage because the unit price will be less than expected and, well, we've all got to pay off the national debt so we might as well take advantage kind of thing?

Part of me does think that the reduced rate should only apply to to the "average household" and above that should be a higher rate to encourage people to use less, but maybe that's too confusing?

[Deleted User]

Astria said:

michaels said:

MSE_James said:

From Martin:

https://twitter.com/MartinSLewis/status/1567852171688804357 

More good news Liz Truss mates with swimming pools to heat as that means lower unit rates than suggested if the social levy was removed from the standing charge - ie the more you use the more you benefit from the 'freeze' not just in absolute terms but also proportionately....

I do now wonder about the people who were going to cut their usage will now no longer cut their usage because the unit price will be less than expected and, well, we've all got to pay off the national debt so we might as well take advantage kind of thing?

Part of me does think that the reduced rate should only apply to to the "average household" and above that should be a higher rate to encourage people to use less, but maybe that's too confusing?

Tiered tariffs have been talked about a lot, but the problem is how you decide what the reduced rate should apply to.  If it's a flat amount of kWh, that would penalise people who need to use more alongside people who choose to use more.

biscan25

I don't see why there is a standing charge at all. Loading the whole cost on the unit rate will mean that people will value energy more and use less.
Call me a cynic, but I think that the main reason for increasing the standing charge, is to make up for lost revenue as customers consume less due to the cost and being in poverty.

[Deleted User]

biscan25 said:

I don't see why there is a standing charge at all. Loading the whole cost on the unit rate will mean that people will value energy more and use less.
Call me a cynic, but I think that the main reason for increasing the standing charge, is to make up for lost revenue as customers consume less due to the cost and being in poverty.

Cynic.

Anyway, the suppliers don't keep the standing charge and its value is even more heavily regulated than any other cost.

wrf12345

The really horrific thing for the really poor using prepayment meters is that the standing charges keeps clicking away even if the meters are empty and not in use, so when they top-up a chunk of the new money instantly disappears (even worse if it is loaded with debt as well). That alone should be reason enough to ditch s/c (if they did it just for prepayment meters then there would be a rush to have them fitted so not viable). But it just shows on whose side the govn really is.

MattMattMattUK

wrf12345 said:

The really horrific thing for the really poor using prepayment meters is that the standing charges keeps clicking away even if the meters are empty and not in use, so when they top-up a chunk of the new money instantly disappears (even worse if it is loaded with debt as well). That alone should be reason enough to ditch s/c (if they did it just for prepayment meters then there would be a rush to have them fitted so not viable). But it just shows on whose side the govn really is.

No there would not, because the unit rates would be higher and if there was no standing charge on pre-pay then the unit rate on pre-pay would need to be higher still.