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

BarelySentientAI

wrf12345 said:

A huge chunk of the s/c has nothing to do with maintaining the network, btw, and needs to be recovered from the energy companies, perhaps by a turnover tax. 

First part of that sentence is true, but bares absolutely no relevance to the following suggestion.

Which parts of the "huge chunk" do you think the energy companies retain illegitimately and thus needs recovery?

xflare

Are we likely to see further increases in standing charges with the reamaing price cap adjustments coming in July, October etc??  Or maybe a reduction?

BarelySentientAI

xflare said:

Are we likely to see further increases in standing charges with the reamaing price cap adjustments coming in July, October etc??  Or maybe a reduction?

Not particularly in date any more, but I haven't seen a more recent one yet.

xflare

BarelySentientAI said:

xflare said:

Are we likely to see further increases in standing charges with the reamaing price cap adjustments coming in July, October etc??  Or maybe a reduction?

Not particularly in date any more, but I haven't seen a more recent one yet.

A pretty depressing read

wrf12345

Other than the energy secretary stepping in with a big stick (probably need a Thor-like hammer), only other possibility I can see is Octopus Energy putting out some zero standing charge tariffs with higher unit rates for prepayment meters (and cancelling the individual help it gives for the poorest) just to show up the rest of the industry. 

JoshinLeeds

BG have released a tariff with even lower standing charges and same unit cost as the original lighter tariff.

molerat

BG have obviously worked out they can cover the lower standing charge with the high unit cost which they are free to do outside of the legislated price cap tariffs.  Possibly, with my cynical hat on, they are playing on the "high standing charge" news to draw customers in, for Mr & Mrs Average that unit price is the equivalent of 20.8p per day v predicted capped unit cost. That doesn't change what they will have to pay to the network etc.

JoshinLeeds

molerat said:

BG have obviously worked out they can cover the lower standing charge with the high unit cost which they are free to do outside of the legislated price cap tariffs.  Possibly, with my cynical hat on, they are playing on the "high standing charge" news to draw customers in, for Mr & Mrs Average that unit price is the equivalent of 20.8p per day v predicted capped unit cost. That doesn't change what they will have to pay to the network etc.

For myself it works out to be far cheaper than anything but a tracker.

Chris_b2z

BG are offering this 'low standing-charge' tariff together with a £150 referal bonus and half price electricity on Sunday afternoons. Maybe BG didn't get the memo that there's only a 1.9% profit margin to play with in the SVT rate.

BarelySentientAI

Chris_b2z said:

BG are offering this 'low standing-charge' tariff together with a £150 referal bonus and half price electricity on Sunday afternoons. Maybe BG didn't get the memo that there's only a 1.9% profit margin to play with in the SVT rate.

Or they worked out that if the "standing charge is theft" brigade all shift en-mass to the tariff they'll just get plenty of surplus from the unit rate in their fixes.