Standing Charge

Emlock

When my energy charges reduced on July 1st, I just happened to check whether my standing charge had also reduced. Haha no such luck, Octopus had increased them. I know, I know, it was only a tiny amount but nevertheless, over the course of a year!!
I got in touch with Octopus to see if they had any comments to make, this was their reply. 

"Hi there,
I can confirm the standing charge has increased from the previous.This may be looked into in the near future but the tariffs are showing this as correct."

So there you have it, all sorted, I feel so much more enlightened now.

CSI_Yorkshire

Emlock said:

Haha no such luck, Octopus had increased them. 

So there you have it, all sorted, I feel so much more enlightened now.

OFGEM and the government between them increased the standing charge that Octopus has to pay on your behalf.

Why would you expect that to mean that Octopus reduced them?

Scot_39

Octopus were actually discounting SC re Ofgem cap before.  About 2% of duel fuel total (edit each ?)  - split more equally in p than the 2:1 ratio in some regions might have suggested iirc.

Have you checked new ones against Ofgem SC ?


They also refused to pass on some prepay increases in Jan iirc.

And they quote not passing on Ofgem rises as a contribution if not cause of losses in last financial reports.

Emlock

You are quite right.
Octopus has absorbed some of the increases during the time I have been a customer, that other energy companies have not passed on to their customers.
That is one of the reasons I will stay with them for the foreseeable future, as they do seem to be as fair as they can be and keep everyone in the loop.

Scot_39

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 

The Ofgem cap rate - is only for domestic / residential supply - and even then not all homes qualify - only those with a direct metering contract with a reseller - and strictly speaking only those on a standard variable tariff.

A fix or a wholesale rate linked tariff - does not have to comply - but few in practice choose to charge more.

Many bed sit and large block renters, park home residents etc don't qualify - as sit on their landlords / commercial contract feed - and pay them - often a commercial rate + admin costs basis. 

swiftsarelush

Yes the standing charges are crazy - there's a petition on the parliament petition website (MSE won't let newbies post links), only 300 have signed it so it's either not an issue for most people, or they are ignorant of the high charges or this petition needs sharing a bit more.

dealyboy

@swiftsarelush said:

Yes the standing charges are crazy - there's a petition on the parliament petition website (MSE won't let newbies post links), only 300 have signed it so it's either not an issue for most people, or they are ignorant of the high charges or this petition needs sharing a bit more.

Welcome to the forum ... https://petition.parliament.uk/petitions/635530

[Deleted User]

swiftsarelush said:

Yes the standing charges are crazy - there's a petition on the parliament petition website (MSE won't let newbies post links), only 300 have signed it so it's either not an issue for most people, or they are ignorant of the high charges or this petition needs sharing a bit more.

We go around in circles on this one. The money that accrues from standing charges has to recovered from consumers in some form or other to pay for such things as WHD; smart meters; the Grid etc. The Grid, in particular, is in significant need of investment. 

The options are:

Increase the unit rate by 24% (based on the Ofgem Cap). Consumers with solar PV would be very happy to see zero standing charge tariffs.

Pay standing charges out of taxation. How much extra income tax would you be happy to pay?

Keep standing charges as they are and help those in GENUINE need via the Welfare system. Again, this would result in an increase in income tax.

I know that it is an over used expression these days ‘but what is your plan’ to cover these costs? 

dunstonh

swiftsarelush said:

Yes the standing charges are crazy - there's a petition on the parliament petition website (MSE won't let newbies post links), only 300 have signed it so it's either not an issue for most people, or they are ignorant of the high charges or this petition needs sharing a bit more.

Perhaps more people understand the need for a standing charge and there are less ignorant people than you realise.

wrf12345

24 percent increase in s/c's is wrong, basic maths says it is more like 10 percent and a huge chunk of the s/c was supposed to be temporary to cover the cost of transferring loss making energy co customers to surviving energy companies, you are not dealing with honest regulators or companies... and all the debts that the co's are trying to recover need to come out of the company's profits/salaries/overheads rather than the pockets of consumers.