Martin Lewis: Why are energy standing charges so high? What can be done

MSE_Eesha

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's Martin Lewis: Why are energy standing charges so high? What can be done Blog.

Tony_H_3

The one thing I haven't seen mentioned is the detrimental effect it has on the solar panel and feed in market, I seriously think the high standing charge exists to prevent anyone (e.g. a customer) from profiting from this market.

superkoopauk

Some good news on this in the Ofgem open letter published today

They say they are going to "Reviewing operating costs, which form a significant component of standing charges"

https://www.ofgem.gov.uk/publications/ofgem-sets-out-clear-expectations-energy-suppliers-financial-resilience-and-supporting-consumers

footersd

There is a petition for this.....

footersd

Petition 635530 with Parliament.....

Only 160 odd people signed.....

footersd

Let us know how we can help......

As I've been complaining about this since last year......being a low user ....& having solar...

QrizB

Tony_H_3 said:

The one thing I haven't seen mentioned is the detrimental effect it has on the solar panel and feed in market, I seriously think the high standing charge exists to prevent anyone (e.g. a customer) from profiting from this market.

On the contrary, there are plenty of people making comfortable profits from their solar panels. Take a look in the "Green and Ethical" sub-forum.

Here's an example from early April (not high summer) where one of the regulars was making almost £5 on a good day:

boatman

All I know is that not long ago the standing charges were a minor thing.. 20p a day not long ago..

And now they are not...

Are you trying to tell us those costs have suddenly doubled?? I very much doubt it..

So that means it's shear profiteering..

QrizB

boatman said:

Are you trying to tell us those costs have suddenly doubled?? I very much doubt it..

So that means it's shear profiteering..

It sounds as though you haven't read the blog, despite the clear instruction in the opening post from the MSE staffer.

MattMattMattUK

boatman said:

All I know is that not long ago the standing charges were a minor thing.. 20p a day not long ago..

And now they are not...

Are you trying to tell us those costs have suddenly doubled?? I very much doubt it..

So that means it's shear profiteering..

Suppliers profits are capped at 1.8% and they make no profit at all on standing charges, but do not inconvenient facts get in the way of a rant.

Danboblar

Unfair to low users? So when its included in the unit rate, it will be unfair to family's. Family's will subsidise low use households, yet have the same connection, that too is unethical. If homes don't use any gas in the summer, and don't pay standing charge, how on earth is the grid going to be maintained, its would not be a family's fault some people are low users, why should they pay inflated unit costs so a house connected to the network can pay zero for the connection or maintenance of the supply. Only fair way is to have two unit rates, first x number at higher rate untill Standing charge is covered, and then the remaining are normal rate.