Standing Charge 10% Increase

sevenhills

Scot_39 said:

coupleuk said:

Octopus have announced a 10% Price Increase to the Daily Standing Charge (and knocked a whopping 1p off the unit rate).

These Standing Charges are a disgrace - when wholesale rates tumble, the Standing Charge goes up.

How does that help people reduce their electric bill? - where is the incentive?

Forget unit rates, the biggest ripoff in the energy market is the Standing Charge.

Amazed this website does not fight the issue.

Ofgem set the standing charge - not the energy firms - not the government.

That is not what I have read!
The OP has started a thread about Octopus increasing the standing charge by 10%, it's not Ofgem that has announced the increase.
If Ofgem set the level of the standing charge, we would all have messages about it's increase.

Spoonie_Turtle

sevenhills said:

Scot_39 said:

coupleuk said:

Octopus have announced a 10% Price Increase to the Daily Standing Charge (and knocked a whopping 1p off the unit rate).

These Standing Charges are a disgrace - when wholesale rates tumble, the Standing Charge goes up.

How does that help people reduce their electric bill? - where is the incentive?

Forget unit rates, the biggest ripoff in the energy market is the Standing Charge.

Amazed this website does not fight the issue.

Ofgem set the standing charge - not the energy firms - not the government.

That is not what I have read!
The OP has started a thread about Octopus increasing the standing charge by 10%, it's not Ofgem that has announced the increase.
If Ofgem set the level of the standing charge, we would all have messages about it's increase.

No doubt you will, it's still a couple of weeks until April and the price changes.

Ofgem sets a cap on what 0kWh usage would cost, and a cap on what 3,100kWh electricity* and 12,000kWh gas would cost.  (*then converted to 2,900kWh electricity for the cap they communicate to the public for some reason, I don't understand why.)  Those tables, by Ofgem, are here https://www.ofgem.gov.uk/sites/default/files/2023-02/Default tariff cap level - 1 April 2023 - 30 June 2023.pdf

Suppliers are free to set a lower standing charge if they wish (and can afford to subsidise those non-negotiable charges - Octopus actually set it at 4% lower than the cap since October).  Octopus are also a company that have campaigned against the standing charge, so this increase is certainly not an arbitrary decision by them and them alone.

Scot_39

Have you had your revised prices for April from your supplier ?

EDF and Octopus seem ahead of the game.

Others will follow.

And many will charge the SC exactly as per Ofgem announcement on 27 Feb.

I could be wrong - but pretty sure Octopus didn't pass on some of the price increases / changes last time.

And from the Ofgem press release on the 27 Feb - that's 7p ave - 46 to 53p = 15% for electric

1p ave 28 to 29p for gas - 3.5%  - but they only quote to nearest penny at that level.

Would have to look at Jan and Apr Ofgem tables for more accurate figures.

So in reality 10% is good  - and may be a sign once again - Octopus has decided to protect some of it's customers - just as I said above - I believe they did in Jan.

Original Ofgem press release on 27 Feb 2023

https://www.ofgem.gov.uk/publications/ofgem-announces-latest-quarterly-price-cap-update

From 1 April the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 51p  per kWh for electricity customers and a standing charge of 53p per day.

I could dig out the Jan equivalent - but pretty sure that was 46p electric SC and 67p per kWh from memory.

bristolleedsfan

Scot_39 said:

So in reality 10% is good  - and may be a sign once again - Octopus has decided to protect some of it's customers - just as I said above - I believe they did in Jan.

10% and 30% SC increases within same energy company reflect OFGEM regional differences decision.

Scot_39

To save me trawling through 3 sets of Ofgem tables for 14 regions for Apr vs Jan - which region / payment method saw the 30% ?

bristolleedsfan

Scot_39 said:

To save me trawling through 3 sets of Ofgem tables for 14 regions for Apr vs Jan - which region / payment method saw the 30% ?

N Wales/Mersey DD

https://octopus.energy/blog/energy-price-cap-apr-2023/

https://twitter.com/funkynoise74/status/1638611947594604544

Raxiel

I got my statement from Octopus earlier. About £6.90 worse off on the electricity, £2.80 better off on the gas. I'll cope.

pensionpawn

Shell, south west, electricity standing charge up 11.7%!
I have had to have (annual E7 radio teleswitch decommissioning misinformation) a smart meter, that does not work correctly. We pay for these.
We are all paying for failed energy companies.
We are all paying for green energy / net zero policies.

Those defending this standing charge rise, please offer an explanation as to why zero standing charge tariffs are not being offered, which would give consumers a better choice? Cartels prefer not to encourage competition?

Scot_39

Those defending this standing charge rise, please offer an explanation as to why zero standing charge tariffs are not being offered, which would give consumers a better choice? Cartels prefer not to encourage competition?

Ofgem and Govt rules.

Simplification Rules on Energy Tariffs - c2011 in review / suggested implemented 2-3 years later iirc

pensionpawn

Scot_39 said:

Those defending this standing charge rise, please offer an explanation as to why zero standing charge tariffs are not being offered, which would give consumers a better choice? Cartels prefer not to encourage competition?

Ofgem and Govt rules.

Simplification Rules on Energy Tariffs - c2011 in review / suggested implemented 2-3 years later iirc

Yes, I'm aware that it was due to a shake up of an overwhelming number of tariffs, however they threw the baby out with the bathwater didn't they. Never should have happened and should be corrected. So now it's time for Martin Lewis to petition the energy secretary more strongly to mandate that each energy supplier MUST offer a zero standing charge electricity / gas tariff. Give the consumer choice and let them decide what is best for their individual circumstances.