Energy Standing Charges

MattMattMattUK

pensionpawn said:

You've ignored / failed to spot my points about a significant factor for the large rises in the standing charge is due to recovering the costs of failed energy companies (Ofgem failure) and levies for poor "Smart" meters and green energy subsidies.

I chose to ignore then because I did not feel it was relevant to respond to them, nothing more.

pensionpawn said:

My suggestion of energy companies offering at least one zero standing charge tariff is not at the exclusion of all other tariffs. It gives the consumer greater choice, which I believe most of us would agree is beneficial to all. No one would be forced onto a zero standing charge tariff. Consumers would chose what works best for them. If the tariff is much higher (and approved by Ofgen) so be it. If only the first few units are at a higher rate (again, subject to Ofgen approval), so be it.

The issue with forcing suppliers to offer them is that those who would benefit form them will choose them, meaning that there would be a group of people who would make little or no contribution to the cost of network upkeep. As an example I have a friend with solar, battery and heat pump, for around nine months of the year he draws no power from the grid, in the other three months he only draws power at night on E7 off peak. He still has a connection to the grid and so rightly pays a standing charge, but if there was a zero standing charge tariff for most of the year he would pay nothing, whilst still having the benefit of a grid connection.

pensionpawn said:

In relation to the issue of near instantaneous fluctuation of energy prices, yes I take the point raised by someone else that this is a significant factor and that unit prices are a convenience for the industry as a whole, however it doesn't always stand that a micro generator would always lose out. I'm currently exporting ~1 kW and according to National Grid Live the price of energy is 16p / kWhr. I'm generating 1.4 kWs, so the export tariff, at a deemed value of 50% of generation, would pay me 0.5 * 1.4 * 6.8p = 4.76p / kWhr. Less than a third of the current price of electricity. 
Now I appreciate that one calculation in a moment in time does not make a justification for a whole year, however there is a case to investigate. Throw in a large battery and the option to store solar to export when prices are optimal takes the debate further.

Generation only makes up between 35% and 55% of the cost of the electricity, that is the part cost of electricity that you are paid for.

[Deleted User]

The issue with forcing suppliers to offer them is that those who would benefit form them will choose them, meaning that there would be a group of people who would make little or no contribution to the cost of network upkeep. As an example I have a friend with solar, battery and heat pump, for around nine months of the year he draws no power from the grid, in the other three months he only draws power at night on E7 off peak. He still has a connection to the grid and so rightly pays a standing charge, but if there was a zero standing charge tariff for most of the year he would pay nothing, whilst still having the benefit of a grid connection.

Correct. This is why these tariffs have been withdrawn. Energy companies do not make money from low users and energy exporters. It is not a sustainable business model. 

EssexHebridean

Yes - not going to lie, if there was a zero standing charge tariff for gas available to me then I'd almost certainly make use of it. Would I be anything like paying my way? Heck no. Would I be a fool not to pay the minimum I could for my own use? Absolutely! 

This is the reason why I have consistently said that in spite of the additional amount the SC adds to my annual gas bill, I still think it is by far the fairest way to set the system up.