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They are avin a laff?

[Deleted User]
[Deleted User] Posts: 0 Newbie
First Post
edited 22 May 2023 at 11:56AM in Energy
We are about to see new energy rates?...Hooray!
But Energy companies av already increased the daily rate to account for their reduction in Energy!
We are now paying £25 a month for socalled daily rate to ensure we have a supply of gas and electric!
So my question is, why avent Ofgem stooped em from doing this?
Whether we use energy or not you av a bill every month for £25!
We shud only pay for what we use..Period!
Thats £300 we pay to an energy company Every Year for absolutely ...Nowt!
You reduce ur Consumption only to find u av not saved a penny due to this One Sided System, that Mustbe Reviewed.


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Comments

  • MattMattMattUK
    MattMattMattUK Posts: 12,356 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    We are about to see new energy rates?...Hooray!
    But Energy companies av already increased the daily rate to account for their reduction in Energy!
    We are now paying £25 a month for socalled daily rate to ensure we have a supply of gas and electric!
    So my question is, why avent Ofgem stooped em from doing this?
    Whether we use energy or not you av a bill every month for £25!
    We shud only pay for what we use..Period!
    Thats £300 we pay to an energy company Every Year for absolutely ...Nowt!
    You reduce ur Consumption only to find u av not saved a penny due to this One Sided System, that Mustbe Reviewed.
    Do you mean the Standing Charge?

    The standing charge covers the maintenance of the network that is connected to your home. Ofgem have specified the rate, the suppliers do not get to keep the standing, they have to hand over to the network operators, government, to various schemes etc. 

    If you reduce your consumption you will still save money.
  • We are about to see new energy rates?...Hooray!
    But Energy companies av already increased the daily rate to account for their reduction in Energy!
    We are now paying £25 a month for socalled daily rate to ensure we have a supply of gas and electric!
    So my question is, why avent Ofgem stooped em from doing this?
    Whether we use energy or not you av a bill every month for £25!
    We shud only pay for what we use..Period!
    Thats £300 we pay to an energy company Every Year for absolutely ...Nowt!
    You reduce ur Consumption only to find u av not saved a penny due to this One Sided System, that Mustbe Reviewed.


    There are many forums discussing this topic already: I suggest that you do a forum search. The daily standard charge includes such things as maintaining and improving The National Grid: the system of wires and transformers that gets power to your home. It also includes climate change taxes; the cost of social support schemes such as Warm Home Discount; the costs that suppliers incur when a supplier fails and consumer balance collection. How would you pay for these costs?
  • We are about to see new energy rates?...Hooray!
    But Energy companies av already increased the daily rate to account for their reduction in Energy!
    We are now paying £25 a month for socalled daily rate to ensure we have a supply of gas and electric!
    So my question is, why avent Ofgem stooped em from doing this?
    Whether we use energy or not you av a bill every month for £25!
    We shud only pay for what we use..Period!
    Thats £300 we pay to an energy company Every Year for absolutely ...Nowt!
    You reduce ur Consumption only to find u av not saved a penny due to this One Sided System, that Mustbe Reviewed.


    Take a look at the video on this web page to understand the various elements that make up the standing charge.

    https://www.ofgem.gov.uk/information-consumers/energy-advice-households/costs-your-energy-bill
  • Looking at what Spain now does, a simple daily standing charge might well be a blessing in disguise. The Power Charge is the maximum instant power that can be drawn from the Grid: a 5kW max limit costs less than a 10kW limit.

    • Electricity meter hire fee. If you don’t own an electricity meter, this charge will appear on your bill. In fact, your retailer is obligated to charge you for using the meter since it belongs to the distributor. Hire fees for digital meters vary between €0.81 and €1.36 per month.
    • Consumption charge. This is the cost for the amount of energy you’ve actually used, measured in kilowatts per hour (kWh). To calculate this, multiply the price per kilowatt by the number of kilowatts you’ve consumed. If you use a company in the free market, you’ll pay either a fixed rate or a two- or three-level variable rate. However, if you use a company on the regulated market, you’ll be subject to a three-level rate system—peak, standard, and off-peak.
    • Power charge. This is a general, fixed charge for the contracted power, which you’ll need to pay whether you consume electricity or not. With the arrival of the new electricity bills in Spain, it’s possible to register one contracted power for your home and another for your business. 
    • Taxes. Both free-market-company and regulated-market-company customers have to pay tax to Hacienda. The tax you’re charged on your electricity is 5.113% of the total of the power  and consumption charge, and you’ll need to pay it regardless of whether you use any electricity. Plus, you’ll need to add 21% VAT if you’re in mainland Spain or the Balearic Islands, 7% if you’re in the Canary Islands, and 1% if you’re in Ceuta or Melilla.
    • Tolls. These make up a significant chunk of the electricity bill. They include transport and distribution costs, as well as other indirect costs related to the supply of electricity. 
    • Retailer markups. This is your payment to your electricity supply company for the services you’ve used (for example, to cover the purchase of energy on the market for consumption, costs involved with changes to your power level, and billing costs). 
    • Fixed costs. These are made up of transport and distribution network costs, investments in renewable energy, the higher production costs in non-mainland Spain, and annual payments to recover any shortfall in payments. These costs are part of what are now called the access tariff or toll.
  • We are about to see new energy rates?...Hooray!
    But Energy companies av already increased the daily rate to account for their reduction in Energy!
    We are now paying £25 a month for socalled daily rate to ensure we have a supply of gas and electric!
    So my question is, why avent Ofgem stooped em from doing this?
    Whether we use energy or not you av a bill every month for £25!
    We shud only pay for what we use..Period!
    Thats £300 we pay to an energy company Every Year for absolutely ...Nowt!
    You reduce ur Consumption only to find u av not saved a penny due to this One Sided System, that Mustbe Reviewed.
    Do you mean the Standing Charge?

    The standing charge covers the maintenance of the network that is connected to your home. Ofgem have specified the rate, the suppliers do not get to keep the standing, they have to hand over to the network operators, government, to various schemes etc. 

    If you reduce your consumption you will still save money.
    Its the system i am getting at, a dc or sc wotever, its a fraud, u dont av all thesehangersoners in other purchases you make, we shud av a definite price, its a mess letsface it the amount of withdrawls from our cash...regards who owns the meter, was told regradless who owns it ur still forced to pay it...£25 every month its time we came out with a better system.
  • There is no fraud going on.

    Your water bill includes 2 standing charges. Your telephone bill includes a charge for line rental. Paying for a service is not the same as buying a tin of beans in Tesco. Service providers incur costs maintaining the network etc, and these costs have to be paid for.

    The Government could choose to do away with standing charges and then add these costs to unit charges. Indeed, some years ago we had tiered unit costs where a much higher charge was made for the first 2250 units (I think  - but happy to be corrected) followed a lower unit charge for all other units used.

    The one given though is that these charges cannot be ignored. They have to be recovered either through energy bills or taxation. So far all Governments have chosen energy bills.
  • Robin9
    Robin9 Posts: 13,033 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The Gas Board has been laying replacement mains and services on my estate since January -  thats a big capital cost which comes out of the standing charge
    Never pay on an estimated bill. Always read and understand your bill
  • Gerry1
    Gerry1 Posts: 10,853 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 25 October 2023 at 8:41PM
    >This is the cost for the amount of energy you’ve actually used, measured in kilowatts per hour (kWh). To calculate this, multiply the price per kilowatt by the number of kilowatts you’ve consumed.
    Aaaarggghhh !
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    1,000 Posts Third Anniversary Name Dropper
    edited 25 October 2023 at 8:41PM
    Gerry1 said:
    >This is the cost for the amount of energy you’ve actually used, measured in kilowatts per hour (kWh). To calculate this, multiply the price per kilowatt by the number of kilowatts you’ve consumed.
    Aaaarggghhh !
    I refuse to amend a copy ‘n’ paste when the error is self evident. I need to preserve my remains heartbeats.
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