Standing Charge

Merry26

Our electricity standing charge has just been increased to 195p per day!!! It’s a business tariff with minimal electricity consumption. The standing charge is now more than the electricity used. Our tariff is a fixed term so we can’t look elsewhere. Is this level of standing charge acceptable given the average (from 1st April) is sub 60p per day?
Many thanks 

MattMattMattUK

Merry26 said:

Our electricity standing charge has just been increased to 195p per day!!! It’s a business tariff with minimal electricity consumption. The standing charge is now more than the electricity used. Our tariff is a fixed term so we can’t look elsewhere. Is this level of standing charge acceptable given the average (from 1st April) is sub 60p per day?
Many thanks 

Business standing charges are subject to different rules compared to residential tariffs. It is unusual that the pricing changes within a business fix, unless it is a inflation linked rise, what is the reason for the increase in the standing charge, is it explained in the contract or other communication? 

Robin9

There is no such a term of "average" in business tariffs -  I've two business supplies ;  one at £1.02 and the second at £.52  (unit rates are both 34.36p. All plus VAT

paracelsus

Standing charges never before so high and we live in an area where the SC is highest.
6% of the charge is to cover the energy firms which have gone bust,and yet we are still paying!
5.2% extra is for Smart meters which most people never asked for and which I have steadfastly avoided
What next ?
We are being ripped off by Companies making huge profits from the decision to privatise the industry ,and a Government and so-called Regulator who do not give a damn !

[Deleted User]

We are being ripped off by Companies making huge profits from the decision to privatise the industry ,and a Government and so-called Regulator who do not give a damn !

Are you saying that these losses on the sale of energy to UK domestic and business consumers are false?

Shell Retail UK is currently looking for a buyer for its energy supply and broadband business. 

It is worth looking at the profit percentage (set by Ofgem) in the Ofgem Cap calculation.

wakeupalarm

Looks like they almost doubled their gross profits from the previous year!  They need to cut their admin costs, poorly run company.

CSI_Yorkshire

wakeupalarm said:

Looks like they almost doubled their gross profits from the previous year!  

Because of the direct government payment - which was actually more than the entire gross profit - did you not notice that, or did you choose to ignore it?

matt_drummer

CSI_Yorkshire said:

wakeupalarm said:

Looks like they almost doubled their gross profits from the previous year!  

Because of the direct government payment - which was actually more than the entire gross profit - did you not notice that, or did you choose to ignore it?

I was going to comment on the gross loss before the grants but what are the grants?

Are they payments in respect of EPG or the EBSS?

If so, they are income.

GP% was 9.8 in 2020 and if I include the grants as income the GP% in 2021 is 10.0

The gross profit percentage is almost identical as you would expect.

matt_drummer

[Deleted User] said:

We are being ripped off by Companies making huge profits from the decision to privatise the industry ,and a Government and so-called Regulator who do not give a damn !

Are you saying that these losses on the sale of energy to UK domestic and business consumers are false?

Shell Retail UK is currently looking for a buyer for its energy supply and broadband business. 

It is worth looking at the profit percentage (set by Ofgem) in the Ofgem Cap calculation.

I'm sure that many customers will happy to see that interest received on customer's credit balances is small.

They don't make a fortune in interest on customer's credit balances contrary to what some people believe!

matt_drummer

wakeupalarm said:

Looks like they almost doubled their gross profits from the previous year!  They need to cut their admin costs, poorly run company.

The gross profit percentage is similar to the previous year, it's just the income is higher because of increased prices.

I don't know how the admin expenses are made up from this (it will be available elsewhere in the accounts) but I would guess that a large part of the increased costs relate to dealing with the energy `crisis' in terms of government grants and assistance, things like EBSS and the EPG and how to incorporate those into billing systems that were never designed to do such things.

I would also expect that they have been overwhelmed in calls and emails from customers and will have had to employ more staff to deal with this.

I suspect it will have been nightmare!

[Deleted User]

The gross profit percentage is similar to the previous year, it's just the income is higher because of increased prices.

As indicated here: