Standing Charge

[Deleted User]

wrf12345 said:

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.

Please show your workings. Just to make sure that that we are all working to the same baseline use the October Cap as the basis for your calculations. 

[Deleted User]

wrf12345 said:

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.

If I understand you correctly, you are suggesting that when Ofgem appoints another supplier to take on the customers of a failed supplier, the appointed supplier (the SoLR)  should cover the cost of consumer credits and the cost of buying in additional energy to support its new customers from its own business profits.  No private company would ever accept that and it would be illegal. 

MattMattMattUK

wrf12345 said:

24 percent increase in s/c's is wrong, basic maths says it is more like 10 percent

It appears your "basic maths" are flawed, as others have worked it out based on the data available and shown their workings. If you have workings you can share then I am sure that others would be prepared to review them. 

wrf12345 said:

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, 

There was an element designed to cover the cost of SoLR, other costs related to the standing charge have also risen significantly, the pricing and costs that make up the standing charged are published and audited, the data is available if you wish to take the time to review it.

wrf12345 said:

you are not dealing with honest regulators or companies... 

We are, your failure to understand energy prices does not mean that they are dishonest.

wrf12345 said:

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.

The "debts" were customer balances, as protected by SoLR, the "co's", I presume you mean energy companies, are not recovering any debt. Their profits are also capped, as are their operating costs, again, that information is available for you to review should you wish to. 

Qyburn

There is an argument that the Warm Home Discount should be funded from general taxation in the same way as other benefits. But i don't know how much of the SC that accounts for.

MattMattMattUK

Qyburn said:

There is an argument that the Warm Home Discount should be funded from general taxation in the same way as other benefits. But i don't know how much of the SC that accounts for.

It is hard to tell as it is tied up within the "policy costs" section and I have not seen any concrete data on it, though someone may be able to post a figure.

In general the WHD should be abolished, it is an incredibly flawed system, UC and the pension system are the systems that should be used.

QrizB

There was an element designed to cover the cost of SoLR

And there still is. The intention was always to spread the SoLR costs over two years.

I'll look for a link when I'm not on my phone.

It is hard to tell as it is tied up within the "policy costs" section and I have not seen any concrete data on it, though someone may be able to post a figure.

I'll look for that too.

Although I do get the feeling that some people won't be happy with mere facts...

dealyboy

MattMattMattUK said:

Qyburn said:

There is an argument that the Warm Home Discount should be funded from general taxation in the same way as other benefits. But i don't know how much of the SC that accounts for.

It is hard to tell as it is tied up within the "policy costs" section and I have not seen any concrete data on it, though someone may be able to post a figure.

In general the WHD should be abolished, it is an incredibly flawed system, UC and the pension system are the systems that should be used.

I think it varies by region, OFGEM doesn't define a rate as it is demand led (cmiiaw).

the_lunatic_is_in_my_head

Dolor 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.

Would be interesting to know what the £255 million (administration) was spent on, looking at the accounts it's £58 million on staff, £19 million assigned to previously purchased assets (amortisation charge), £31million in writing down the value of assets (income impairment charge) and few million here or there for other bits but I can't read the accounts well enough to see where the other £130 odd million was spent?

QrizB

QrizB said:

There was an element designed to cover the cost of SoLR

And there still is. The intention was always to spread the SoLR costs over two years.

I'll look for a link when I'm not on my phone.

It is hard to tell as it is tied up within the "policy costs" section and I have not seen any concrete data on it, though someone may be able to post a figure.

I'll look for that too.

Although I do get the feeling that some people won't be happy with mere facts...

SoLR costs spread over two years:

https://www.ofgem.gov.uk/publications/decision-letter-supplier-last-resort-levy-claims

Policy costs breakdown:

See Annex 4 here where the Warm Home Discount is shown as a charge of £10.30 per customer.

Qyburn

the_lunatic_is_in_my_head said:

Would be interesting to know what the £255 million (administration) was spent on, 

Admin cost more or less increased in line with revenue. Around 19% in both years shown. I don't think we know enough from the outside to simply conclude that these costs could be reduced. Or is allegation that they've inflated these figures in order to create a loss for some reason?