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standing charges

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  • MikeJXE
    MikeJXE Posts: 3,856 Forumite
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    DE_612183 said:
    MikeJXE said:
    Krakkkers said:
    It seems on this board that standing charges are a good thing but i also see it as a dis incentive to cutting back.
    You are so right. I'm a low user too. If energy companies can't get you one way they will get you another
    It's not about "getting you" - It's about paying for the infrastructure that enables you to switch a switch and alight comes on - if you don't pay standing charges - how do you think money will be available to maintain the pylons and carry out repairs to all the cables etc?
    So pray tell me how much has standing charged increased in comparison to other industries or inflation ? 
  • jimjames
    jimjames Posts: 18,643 Forumite
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    Krakkkers said:
    It seems on this board that standing charges are a good thing but i also see it as a dis incentive to cutting back.
    Why is it a disincentive? You cut your use your bill will go down until it's only standing charges and you can then cut them out by cancelling completely.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Astria
    Astria Posts: 1,448 Forumite
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    Krakkkers said:
    It seems on this board that standing charges are a good thing but i also see it as a dis incentive to cutting back.
    Please explain.
    Your bill is a fixed amount + whatever you use. So your bill will be lower the less you use.
    How is that not an incentive to cut back?

  • EssexHebridean
    EssexHebridean Posts: 24,421 Forumite
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    MikeJXE said:
    DE_612183 said:
    MikeJXE said:
    Krakkkers said:
    It seems on this board that standing charges are a good thing but i also see it as a dis incentive to cutting back.
    You are so right. I'm a low user too. If energy companies can't get you one way they will get you another
    It's not about "getting you" - It's about paying for the infrastructure that enables you to switch a switch and alight comes on - if you don't pay standing charges - how do you think money will be available to maintain the pylons and carry out repairs to all the cables etc?
    So pray tell me how much has standing charged increased in comparison to other industries or inflation ? 
    The gas standing charge has increased by around £20 per year  since May 2018 I believe.
    The electricity standing charge has increased more sharply - by around £98per year over that time period I think - but the reasons for a lot of this increase have been well documented here and elsewhere - and a good chunk of it is to do with the failed suppliers and the SOLR process. Realistically though anyone who's been active here for any amount of time already knows this. 
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  • Mstty
    Mstty Posts: 4,209 Forumite
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    Hello and welcome to the forum and your first post.

    Sorry to here you are struggling, there are a lot of posts about standing charges and unfortunately no way round them at all
  • MikeJXE
    MikeJXE Posts: 3,856 Forumite
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    MikeJXE said:
    DE_612183 said:
    MikeJXE said:
    Krakkkers said:
    It seems on this board that standing charges are a good thing but i also see it as a dis incentive to cutting back.
    You are so right. I'm a low user too. If energy companies can't get you one way they will get you another
    It's not about "getting you" - It's about paying for the infrastructure that enables you to switch a switch and alight comes on - if you don't pay standing charges - how do you think money will be available to maintain the pylons and carry out repairs to all the cables etc?
    So pray tell me how much has standing charged increased in comparison to other industries or inflation ? 
    The gas standing charge has increased by around £20 per year  since May 2018 I believe.
    The electricity standing charge has increased more sharply - by around £98per year over that time period I think - but the reasons for a lot of this increase have been well documented here and elsewhere - and a good chunk of it is to do with the failed suppliers and the SOLR process. Realistically though anyone who's been active here for any amount of time already knows this. 
    Is that a quote or a guess, going back a few years makes it look less of an increase 

    I believe which is nearer the mark

    Standing charges have gone up over 50% in the last year and I can't imagine maintenance cost have gone up that much or we would have huge increases in Telephone and broadband services. 

    My broadband is less now than it was 2 years ago 
  • Brie
    Brie Posts: 14,629 Ambassador
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    The problem is that we see the standing charge separate from the use charge.  That's what makes it different from most other things we purchase.  Yes, everything that is purchased has a charge for infrastructure/delivery/etc as well as the actual product but we just don't notice as it's built into the cost.  

    So if I go to Tescos to buy a tin of beans it will cost £1 (or whatever) and in that is the cost of the beans, the tin and getting it to the shop and on the shelf and staff to dust around it and take my money when I want to buy a tin of beans.  There's more infrastructure attached the more beans I buy.  But if I'm on a reduced income and can't afford a tin of beans every day I can cut my use and therefore pay for less infrastructure.  If I just buy a tin every other day rather than every day my "standing charges" are also reduced by 1 half.  
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  • diystarter7
    diystarter7 Posts: 5,202 Forumite
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    Hi

    Standing charges vary area to area and reasons behind this

    Thanks
    https://www.bbc.co.uk/news/business-60878314
  • EssexHebridean
    EssexHebridean Posts: 24,421 Forumite
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    edited 17 January 2023 at 9:28PM
    MikeJXE said:
    MikeJXE said:
    DE_612183 said:
    MikeJXE said:
    Krakkkers said:
    It seems on this board that standing charges are a good thing but i also see it as a dis incentive to cutting back.
    You are so right. I'm a low user too. If energy companies can't get you one way they will get you another
    It's not about "getting you" - It's about paying for the infrastructure that enables you to switch a switch and alight comes on - if you don't pay standing charges - how do you think money will be available to maintain the pylons and carry out repairs to all the cables etc?
    So pray tell me how much has standing charged increased in comparison to other industries or inflation ? 
    The gas standing charge has increased by around £20 per year  since May 2018 I believe.
    The electricity standing charge has increased more sharply - by around £98per year over that time period I think - but the reasons for a lot of this increase have been well documented here and elsewhere - and a good chunk of it is to do with the failed suppliers and the SOLR process. Realistically though anyone who's been active here for any amount of time already knows this. 
    Is that a quote or a guess, going back a few years makes it look less of an increase 

    I believe which is nearer the mark

    Standing charges have gone up over 50% in the last year and I can't imagine maintenance cost have gone up that much or we would have huge increases in Telephone and broadband services. 

    My broadband is less now than it was 2 years ago 
    Sorry - not clear what you mean as I’ve not quoted anything?

    The 2018 SC figures I used to calculate the increases are correct so far as I know - perhaps you have something that tells you differently?
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    £100k barrier broken 1/4/25
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  • km1500
    km1500 Posts: 2,790 Forumite
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    edited 17 January 2023 at 9:28PM
    You don't pay a standing charge plus pence-per-litre to fill up you car, and I am sure Shell have infrastructure charges too.

    Ditto Tesco for food as posted above.

    It seems like energy is unique in charging you this way. Oh sooy, landlines have 'line rental' - luckily mobiles came along so you just pay per call (or buy a bundle, or pay for a  monthly bundle)
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