Energy prices held but standing charge up

MattMattMattUK

Section62 said:

The coal/oil companies could indeed follow the same operating model and charge a subscription, but apparently they don't because the market is so competitive that if they demanded a 'standing charge' (aka 'periodic fee') they would lose customers to those who simply charge by the tonne.

Are those companies maintaining a connection directly to your premises that would not exist if you were not a customer?

Scot_39

ariarnia said:

matt_drummer said:

ariarnia said:

sevenhills said:

MattMattMattUK said:

charliewhatsit said:

Just had an email from EDF where I'm on the variable rate for now.    Daily standing charges are up which makes a mockery of the energy price guarantees, although the total estimate for energy is roughly the same for now.  Looks like they are preparing for lower wholesale prices but boosting  their standing charges to compensate to future proof their revenue when the time comes.  Any comments anyone?  I shall .definitely be looking at the competition when the time comes with an eye on standing charges.

The energy suppliers make no profit on the standing charge, they have to hand it over to Ofgem, network operators and the government.

A few years ago you could get a tariff without a standing charge. Did the network operators receive no money?
How suppliers set standing charges alongside the unit rate are commercial decisions.

you can still sign up today to a 0 standing charge tarrif. theres 2 i no of. 

here's an example quote from utilita (your price would depend on your region) 



you pay the first rate for the first 2 kwh of energy each day then the 'saver' rate for the rest. you would have to work out for yourself if its more expensive or cheaper for you but normally the ballpark is the house has to be empty/using less than 1kwh for 75% of the year to be cheaper than the variable under the price guarentee. 

at the rates above a 'average' user (2900 kwh of electric and 12000 of gas on a 'normal' seasonal curve) would pay about £2650 so about £150 more than a tarrif with the standing charge. 

https://join.utilita.co.uk/

I do that with loads of solar panels and batteries but who is this really any good for, especially the people who have an issue with the standing charge?

yonks ago (maybe 10 years) we had a 0 standing charge for our gas only. because we use gas for 4 months of the year (nov-feb) and even then we use half the 'average' then we worked out it was the best option for us. 

but i think they pulled 1 fuel only 0 rate tarrifs a long time ago and it wouldn't work out the same for both fuels (even as low users we would pay more than a normal single rate tarrif) 

also i think they're good for holiday homes that are only used during the summer months. or maybe houses empty for renovation/divorce/probabte. but very small market i agree. 

10 years ago would be about right.

They disappeared largely as a result of Ofgem simplification exercise study instigated c2011 iirc under Cameron / Clegg.  Actioned 2 iirc, maybe 3 years later.