Can companies charge above the ofgem standing charge rate?

Corum_uk

The Ofgem website states the cap sets a limit that suppliers can charge for the unit rate.
But what about standing charges?
For electricity, Ofgem states the new electricity rate with be £0.53 per day from 1 July 2023.
My energy company however has notified me that they will be charging £0.58 per day.

CSI_Yorkshire

Corum_uk said:

For electricity, Ofgem states the new electricity rate with be £0.53 per day from 1 July 2023.

Misunderstanding of headlines.  There are 48 different rates set by OFGEM for electricity standing charge, depending on where you are and how you pay.

Corum_uk said:

My energy company however has notified me that they will be charging £0.58 per day.

This is within the range of the possible rates and is by no means the most expensive.

PeterGr

Which region is your electricity supplier ?- each has a different published rate, and what is your payment method?

Standing charges tend to be to 2 dp in units of p/day so 53p/day or 58p/day are probably not published rates.  What Ofgem produce is the annual maximum cost for 0 kWh, for each region and method of payment.

Corum_uk

I see. So just to be clear, energy companies must apply both the Ofgem unit rate cap and standing charge cap for the relevant area? Unfortunately Ofgem do not make it clear, at least on this page: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-energy-price-cap-affects-you 

Supplier is Outfox the Market
Location is Plymouth
Payment method is DD

Gerry1

Nothing from Ofgem is ever made clear !

CSI_Yorkshire

Corum_uk said:

I see. So just to be clear, energy companies must apply both the Ofgem unit rate cap and standing charge cap for the relevant area? Unfortunately Ofgem do not make it clear, at least on this page: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-energy-price-cap-affects-you 

Supplier is Outfox the Market
Location is Plymouth
Payment method is DD

The best way of finding all the limits - other than calculating yourself from the actual OFGEM numbers (which aren't rates, they are total costs for fictitious customers) - seem to be EdF.

https://www.edfenergy.com/sites/default/files/dm1920_standard_variable_deemed_and_welcome_-_standard_e7_and_prepayment_meters.pdf.pdf

You're probably South-West licence area - where the DD standing charge cap is 58.28p

Corum_uk

OK thanks. Good to know.

PeterGr

The best way of finding all the limits - other than calculating yourself from the actual OFGEM numbers (which aren't rates, they are total costs for fictitious customers) - seem to be EdF.

or alternatively the table on page 25 of this document......https://researchbriefings.files.parliament.uk/documents/CBP-9714/CBP-9714.pdf

CSI_Yorkshire

PeterGr said:

The best way of finding all the limits - other than calculating yourself from the actual OFGEM numbers (which aren't rates, they are total costs for fictitious customers) - seem to be EdF.

or alternatively the table on page 25 of this document......https://researchbriefings.files.parliament.uk/documents/CBP-9714/CBP-9714.pdf

That's a new document to me - I like it, good spot!

Chrysalis

Corum_uk said:

The Ofgem website states the cap sets a limit that suppliers can charge for the unit rate.
But what about standing charges?
For electricity, Ofgem states the new electricity rate with be £0.53 per day from 1 July 2023.
My energy company however has notified me that they will be charging £0.58 per day.

On non SVR tarrifs yes.

Also it varies per region, Ofgem tend to just quote averages for the country.