Standing Charge and Energy Price Guarantee

walkerluce

Hi, I can't find the answer to my question and wonder if anyone can help (I've watched Martin's video and read the article).

I'm on a fixed tariff with Eon.
My unit rates for both elec and gas are lower than the new price guarantee so I know that they won't reduce.  
However both of the standing charge rates on my fix are higher than the price guarantee standing charges.

What should happen?
Should my unit rates stay the same and my standing charges reduce?

or... what?

Thanks in advance!  :-) 

QrizB

Your standing charges are likely to remain as they are. There's been no mention of standing charges being capped by the EPG.

[Deleted User]

EPG does not change standing charges on fixed tariffs.

Ultrasonic

What I've experienced with Scottish Power is that the total cost is used to judge changes. My unit prices are higher than the EPG but with the lower standing charges factored it it appears whatever their calculation is says otherwise and so I've see no reduction. 

I really wish there was solid information published on exactly what should be being done so that as customers we could check.

[Deleted User]

That’s what they’ve said - if your fixed tariff at typical use (2900+12000+SC) is over the EPG then you get a discount. If it isn’t, you don’t.

The discount is up to 17p electric, up to 4.2p gas, and “up to 0p” on standing charge, with floors at the SVT level.

Ultrasonic

Deleted_User said:

That’s what they’ve said - if your fixed tariff at typical use (2900+12000+SC) is over the EPG then you get a discount. If it isn’t, you don’t.

The discount is up to 17p electric, up to 4.2p gas, and “up to 0p” on standing charge, with floors at the SVT level.

The only published information is the government 'factsheet', unless I've missed something that you can share? If not then my point above stands. 

[Deleted User]

But that’s what the fact sheet says.  Or at least if you read it strictly then that’s what it says.

QrizB

Deleted_User said:

But that’s what the fact sheet says.  Or at least if you read it strictly then that’s what it says.

I'm not so sure. You mean this fact sheet?

https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

It says:

Fixed tariff customers will have the same support where appropriate. Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers that currently have unit rates above the EPG.

There's no mention of reducing the daily standing charge.

Ultrasonic

Deleted_User said:

But that’s what the fact sheet says.  Or at least if you read it strictly then that’s what it says.

No, as we've discussed previously, what has happened in my case is at odds with the 'factsheet', which you take the view is not intended to be definitive. I'm prepared to accept the latter but that leaves my personal requirement for something that is definitive to be published so that consumers can check what is happening.

@QrizB my case is different to the OP's but I brought it up since if the 'factsheet' isn't strictly accurate them I'm left with a dearth of solid information to answer their question. Based on the 'factsheet' I'd expect them not to see a reduction in standing charges but it appears that the actual rules may be different so I'm less confident.

The 'factsheet' states:

"If you’re on a fixed rate tariff

Fixed tariff customers will have the same support where appropriate. Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers that currently have unit rates above the EPG.

A ‘floor’ unit price for gas averaging at 10.3p/kWh and for electricity averaging at 34p/kWh for direct debit customers will be introduced, because some people will have fixed at much lower prices some time ago, meaning their annual payments will already be below the £2,500 average set by the Energy Price Guarantee.

Customers on fixed rate tariffs that are already below the floor unit prices will continue to enjoy those low rates, but will not receive a further discount for the duration of their fixed term."

Whilst my own unit prices exceed those of the EPG and have not been reduced, apparently because a total cost calculation has been factored in.

[Deleted User]

QrizB said:

Deleted_User said:

But that’s what the fact sheet says.  Or at least if you read it strictly then that’s what it says.

I'm not so sure. You mean this fact sheet?

https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

It says:

Fixed tariff customers will have the same support where appropriate. Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers that currently have unit rates above the EPG.

There's no mention of reducing the daily standing charge.

Precisely. If there was any intent or instruction to change it, then it would be written there.

That then confirmed by the more detailed breakdowns provided by the suppliers.

@Ultrasonic you’re right with that, I had misremembered the “customers that currently have unit rates above the EPG” incorrectly as “customers that currently have tariffs above the EPG” - my apologies.

grn99

And given the message I got from E.ON I think there’s a lot of confusion, even within the industry….

“Good morning, our fixed tariffs are still under review, these revisions will be amending the unit rates, as well as the standing charges to fix within the governments price cap freeze. “

That was in response to my asking what would happen for those of us on fixed rate tariffs.

It’s getting hard to know who or what to believe.