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Will standing charges increase in April?
Comments
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It seems to me only I answered the question from the OPmacman said:
The energy companies (by which in this instance I assume you mean the retail suppliers) neither own nor maintain the supply network. That is done by National Grid, and the regional DNO's. SSE and SP also have some share in the ownership of the electricity grid.MikeJXE said:
As far as I can remember I have always paid a standing charge, I keep being told it's for the infrastructureMstty said:
It's.not set by the energy companies.MikeJXE said:IMO yes as it's the only way energy companies can get more out of you when you are using less.
So are you saying thats not true the government takes it all. ?
You need to distinguish between the wholesale suppliers, distributors, and retail suppliers, as they are totally separate companies doing totally separate functions.
Just referring to 'energy companies' as one amorphous profiteering mass is extremely misleading.
He didn't say 'the gov't takes it all'. He said that the s/c level is determined by the regulator.
will standing charges increase from their current levels ?
I do know what the standing charge is I have been told many many times but thats irrelevant to the question.
Everyone else seems to have got sidetracked by my answer explaining what the standing charge is instead of sticking to the post.
Perhaps it should be renamed Government levy or tax or whatever is appropriate so that users are not confused and will know exactly what they are paying for.
Does this government want to be more transparent ? I think not0 -
It is not a Government tax per se. The standing charge covers the cost of getting energy to your home AND the cost of Government energy support schemes PLUS the cost of failed suppliers.MikeJXE said:
It seems to me only I answered the question from the OPmacman said:
The energy companies (by which in this instance I assume you mean the retail suppliers) neither own nor maintain the supply network. That is done by National Grid, and the regional DNO's. SSE and SP also have some share in the ownership of the electricity grid.MikeJXE said:
As far as I can remember I have always paid a standing charge, I keep being told it's for the infrastructureMstty said:
It's.not set by the energy companies.MikeJXE said:IMO yes as it's the only way energy companies can get more out of you when you are using less.
So are you saying thats not true the government takes it all. ?
You need to distinguish between the wholesale suppliers, distributors, and retail suppliers, as they are totally separate companies doing totally separate functions.
Just referring to 'energy companies' as one amorphous profiteering mass is extremely misleading.
He didn't say 'the gov't takes it all'. He said that the s/c level is determined by the regulator.
will standing charges increase from their current levels ?
I do know what the standing charge is I have been told many many times but thats irrelevant to the question.
Everyone else seems to have got sidetracked by my answer explaining what the standing charge is instead of sticking to the post.
Perhaps it should be renamed Government levy or tax or whatever is appropriate so that users are not confused and will know exactly what they are paying for.
Does this government want to be more transparent ? I think not
The Government could have chosen to bin the Consumer Levy which would have left millions of consumers out of pocket as their credit balances would have realised pennies for every pound.
The ongoing argument about adding a hydrogen levy to the standing charge is that it would be a hidden Net Zero tax.0 -
You replied to the OP, but with a comment inferring that the SC would increase so suppliers could make more profit - which was subsequently explained by others not to be true.MikeJXE said:
It seems to me only I answered the question from the OPmacman said:
The energy companies (by which in this instance I assume you mean the retail suppliers) neither own nor maintain the supply network. That is done by National Grid, and the regional DNO's. SSE and SP also have some share in the ownership of the electricity grid.MikeJXE said:
As far as I can remember I have always paid a standing charge, I keep being told it's for the infrastructureMstty said:
It's.not set by the energy companies.MikeJXE said:IMO yes as it's the only way energy companies can get more out of you when you are using less.
So are you saying thats not true the government takes it all. ?
You need to distinguish between the wholesale suppliers, distributors, and retail suppliers, as they are totally separate companies doing totally separate functions.
Just referring to 'energy companies' as one amorphous profiteering mass is extremely misleading.
He didn't say 'the gov't takes it all'. He said that the s/c level is determined by the regulator.
will standing charges increase from their current levels ?
I do know what the standing charge is I have been told many many times but thats irrelevant to the question.
Everyone else seems to have got sidetracked by my answer explaining what the standing charge is instead of sticking to the post.
Perhaps it should be renamed Government levy or tax or whatever is appropriate so that users are not confused and will know exactly what they are paying for.
Does this government want to be more transparent ? I think notWhat the standing charge is is entirely relevant to the question, and what it is governs what it is made up of, and thus whether in fact it can be increased.🎉 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
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
There are already aspects of the current SC that are related to Net Zero, no? Is the Hydrogen thing going to be buried in with those, or a specific item on its own? (Apologies if this has been mentioned and I missed it!)[Deleted User] said:
It is not a Government tax per se. The standing charge covers the cost of getting energy to your home AND the cost of Government energy support schemes PLUS the cost of failed suppliers.MikeJXE said:
It seems to me only I answered the question from the OPmacman said:
The energy companies (by which in this instance I assume you mean the retail suppliers) neither own nor maintain the supply network. That is done by National Grid, and the regional DNO's. SSE and SP also have some share in the ownership of the electricity grid.MikeJXE said:
As far as I can remember I have always paid a standing charge, I keep being told it's for the infrastructureMstty said:
It's.not set by the energy companies.MikeJXE said:IMO yes as it's the only way energy companies can get more out of you when you are using less.
So are you saying thats not true the government takes it all. ?
You need to distinguish between the wholesale suppliers, distributors, and retail suppliers, as they are totally separate companies doing totally separate functions.
Just referring to 'energy companies' as one amorphous profiteering mass is extremely misleading.
He didn't say 'the gov't takes it all'. He said that the s/c level is determined by the regulator.
will standing charges increase from their current levels ?
I do know what the standing charge is I have been told many many times but thats irrelevant to the question.
Everyone else seems to have got sidetracked by my answer explaining what the standing charge is instead of sticking to the post.
Perhaps it should be renamed Government levy or tax or whatever is appropriate so that users are not confused and will know exactly what they are paying for.
Does this government want to be more transparent ? I think not
The Government could have chosen to bin the Consumer Levy which would have left millions of consumers out of pocket as their credit balances would have realised pennies for every pound.
The ongoing argument about adding a hydrogen levy to the standing charge is that it would be a hidden Net Zero tax.🎉 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
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
the problem is the question in the op is not a question with a known yes or no.MikeJXE said:
It seems to me only I answered the question from the OPmacman said:
The energy companies (by which in this instance I assume you mean the retail suppliers) neither own nor maintain the supply network. That is done by National Grid, and the regional DNO's. SSE and SP also have some share in the ownership of the electricity grid.MikeJXE said:
As far as I can remember I have always paid a standing charge, I keep being told it's for the infrastructureMstty said:
It's.not set by the energy companies.MikeJXE said:IMO yes as it's the only way energy companies can get more out of you when you are using less.
So are you saying thats not true the government takes it all. ?
You need to distinguish between the wholesale suppliers, distributors, and retail suppliers, as they are totally separate companies doing totally separate functions.
Just referring to 'energy companies' as one amorphous profiteering mass is extremely misleading.
He didn't say 'the gov't takes it all'. He said that the s/c level is determined by the regulator.
will standing charges increase from their current levels ?
I do know what the standing charge is I have been told many many times but thats irrelevant to the question.
Everyone else seems to have got sidetracked by my answer explaining what the standing charge is instead of sticking to the post.
Perhaps it should be renamed Government levy or tax or whatever is appropriate so that users are not confused and will know exactly what they are paying for.
Does this government want to be more transparent ? I think not
until the announcement at the end of the month its 'educated guess work' based on whats happened before. and that means understanding what the standing charge is AND how its set AND who makes the decision AND what they consider.
those are the things that will determine if the standing charge goes up, down or stays the same.
so people arent getting side tracked for saying the reason you gave (it's the only way energy companies can get more out of you) can't be right because thats just not how it works.
and why would it be called the 'government levy' when its made up of several differnt parts with the green policies making up around a quarter of it?Almost everything will work again if you unplug it for a few minutes, including you. Anne Lamott
It's amazing how those with a can-do attitude and willingness to 'pitch in and work' get all the luck, isn't it?
Please consider buying some pet food and giving it to your local food bank collection or animal charity. Animals aren't to blame for the cost of living crisis.3 -
However in times of old zero standing charge tariffs were available and there is no reason why they shouldn't be available now, co-existing alongside the traditional tariffs, increasing customer choice. No one would be forced onto a tariff that isn't right for them, however some may consider a zero standing charge tariff better for them.Dolor said:MikeJXE said:
As far as I can remember I have always paid a standing charge, I keep being told it's for the infrastructureMstty said:
It's.not set by the energy companies.MikeJXE said:IMO yes as it's the only way energy companies can get more out of you when you are using less.
So are you saying thats not true the government takes it all. ?What is a standing charge?
The standing charge is a fixed amount that you pay on your energy bill every day, regardless of your usage.
The charge covers those ‘non-energy’ costs that suppliers have to pay on behalf of customers. These include but are not limited to: the costs of using and maintenance of the energy networks (the infrastructure that gets electricity and gas to your home), costs of government support schemes and the costs of carrying out meter readings.
Standing charges are applied to both electricity and gas tariffs. They can also vary slightly by the region of the country you live in.
The energy regulator Ofgem’s rationale for why these costs should be included in the standing charges is to distribute the amounts evenly across everyone. If they were added to the kWh usage costs, it could lead to vulnerable households with high energy costs paying proportionally larger sums.
Source: Good Energy (and many others)
The problem that the Government is having with getting a Hydrogen Levy through Parliament is that it does not benefit any consumer directly. It is a levy to raise money for Hydrogen research and projects.
To directly answer the OPs question I only see the SC rising as the continued push for net zero continues and more energy companies go belly up. Who's paying for all the additional infrastructure (not home chargers etc) to migrate all UK vehicles to EVs?1 -
There are all that many energy suppliers to go bust now really are there - it could also be said that those that have weathered the storm thus far are likely to be pretty solid now?Previous to the positive avalanche of failed companies that provoked the big rise in the SC to cover the SOLR costs for, it had always just been quietly included without anyone needing to know about it specifically I think?🎉 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
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Thats why I answered IMO as I believe it was what the OP was askingariarnia said:
the problem is the question in the op is not a question with a known yes or no.MikeJXE said:
It seems to me only I answered the question from the OPmacman said:
The energy companies (by which in this instance I assume you mean the retail suppliers) neither own nor maintain the supply network. That is done by National Grid, and the regional DNO's. SSE and SP also have some share in the ownership of the electricity grid.MikeJXE said:
As far as I can remember I have always paid a standing charge, I keep being told it's for the infrastructureMstty said:
It's.not set by the energy companies.MikeJXE said:IMO yes as it's the only way energy companies can get more out of you when you are using less.
So are you saying thats not true the government takes it all. ?
You need to distinguish between the wholesale suppliers, distributors, and retail suppliers, as they are totally separate companies doing totally separate functions.
Just referring to 'energy companies' as one amorphous profiteering mass is extremely misleading.
He didn't say 'the gov't takes it all'. He said that the s/c level is determined by the regulator.
will standing charges increase from their current levels ?
I do know what the standing charge is I have been told many many times but thats irrelevant to the question.
Everyone else seems to have got sidetracked by my answer explaining what the standing charge is instead of sticking to the post.
Perhaps it should be renamed Government levy or tax or whatever is appropriate so that users are not confused and will know exactly what they are paying for.
Does this government want to be more transparent ? I think not
until the announcement at the end of the month its 'educated guess work' based on whats happened before. and that means understanding what the standing charge is AND how its set AND who makes the decision AND what they consider.
those are the things that will determine if the standing charge goes up, down or stays the same.
so people arent getting side tracked for saying the reason you gave (it's the only way energy companies can get more out of you) can't be right because thats just not how it works.
and why would it be called the 'government levy' when its made up of several differnt parts with the green policies making up around a quarter of it?0 -
Hidiystarter7 said:Hi OP
I often search for MSE articles as they are often easier to read and very accurates
Quote from link below may give us an ideaHow standing charges work
Standing charges are a fixed daily rate that you pay for having an electricity and/or gas connection to cover the cost of supplying energy. Under the energy price cap, Ofgem is using standing charges to recover the costs of the huge number of energy firms that went bust last year – a total of £1 billion this year.
About £68 of the typical £1,971 a year bill under the current price cap is for supplier failures, while other costs, such as increases in fixed network costs (the cost of maintaining energy networks) and policy costs (such as green levies and the rise in the warm home discount rebate) also contributed to higher standing charges.
Currently, electricity standing charges are 45.34p per day for electricity and 27.22p per day for gas.
What does Ofgem say?
An Ofgem spokesperson said: "We looked long and hard at whether moving the costs from standing charges to usage was the right thing to do, but the numbers just didn't stack up."Our analysis shows it would disproportionately negatively affect some of the most vulnerable consumers who use high amounts of energy and are least able to reduce their use, such as those with disabilities and the elderly, while resulting in minimal savings for those it would benefit – around just £1 a month."While this was specifically in relation to recovering supplier of last resort costs, we will continue to keep standing charges under review and consult widely on any possible future changes."
https://www.moneysavingexpert.com/news/2022/08/ofgem-rules-out-shifting-the-costs-of-supplier-failure-out-of-th/
Thanks
A bit more research re SC's
Though all are guessing, reading the link below
is in my estimation pointing to them rising. It makes sense for suppliers I
guess as hard-pushed customers cut back usage, the standing charges continue
to earn the suppliers revenues.
Quote from link belowEDF told the Observer that the daily fee was influenced by factors outside its control, including differing costs in the 14 regional networks. “The standing charge is not there for suppliers to profit from, but to cover the fixed costs suppliers incur, which have risen by over 86% in the last year,” it says.
Energy regulator Ofgem says “average” standing charges are capped at 46p a day. In fact, suppliers are free to set their own sum, as long as it does not exceed the energy price cap when combined with the price per unit of energy.
0 -
Make of this what you will.EssexHebridean said:
There are already aspects of the current SC that are related to Net Zero, no? Is the Hydrogen thing going to be buried in with those, or a specific item on its own? (Apologies if this has been mentioned and I missed it!)Dolor said:
It is not a Government tax per se. The standing charge covers the cost of getting energy to your home AND the cost of Government energy support schemes PLUS the cost of failed suppliers.MikeJXE said:
It seems to me only I answered the question from the OPmacman said:
The energy companies (by which in this instance I assume you mean the retail suppliers) neither own nor maintain the supply network. That is done by National Grid, and the regional DNO's. SSE and SP also have some share in the ownership of the electricity grid.MikeJXE said:
As far as I can remember I have always paid a standing charge, I keep being told it's for the infrastructureMstty said:
It's.not set by the energy companies.MikeJXE said:IMO yes as it's the only way energy companies can get more out of you when you are using less.
So are you saying thats not true the government takes it all. ?
You need to distinguish between the wholesale suppliers, distributors, and retail suppliers, as they are totally separate companies doing totally separate functions.
Just referring to 'energy companies' as one amorphous profiteering mass is extremely misleading.
He didn't say 'the gov't takes it all'. He said that the s/c level is determined by the regulator.
will standing charges increase from their current levels ?
I do know what the standing charge is I have been told many many times but thats irrelevant to the question.
Everyone else seems to have got sidetracked by my answer explaining what the standing charge is instead of sticking to the post.
Perhaps it should be renamed Government levy or tax or whatever is appropriate so that users are not confused and will know exactly what they are paying for.
Does this government want to be more transparent ? I think not
The Government could have chosen to bin the Consumer Levy which would have left millions of consumers out of pocket as their credit balances would have realised pennies for every pound.
The ongoing argument about adding a hydrogen levy to the standing charge is that it would be a hidden Net Zero tax.Why do we need a levy and what will be the impact on consumer bills?
The purpose of the levy is to provide long-term funding for the hydrogen business model, which will enable hydrogen producers to overcome the operating cost gap between low carbon hydrogen and fossil fuels.
The levy is not expected to be implemented until 2025 (subject to legislation being in place) and so we do not expect it to have impacts on consumer bills before then. Once introduced, we expect its impacts will ramp up as we look to deliver our 2030 hydrogen ambitions to improve energy security. As policy development on the levy is ongoing, with a number of key decisions still pending, there is uncertainty regarding the precise impact of the levy on consumer bills.
Source: Gov.uk
1
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