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

Chris_b2z

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.

In my region, the combined dual fuel reduction in standing charge is £153 per year against the criminal SVT rate while the uplift in unit rate is only 0.3% for gas and 1.5% for electric. The Fixed Lighter 12 v3 tariff really is worth considering if you are a low energy user and the option is always there to switch to another BG tariff should prices change later in the year.

The only downside is that you'll have to live with the guilt of reducing your contribution to infrastructure improvements, energy industry profits, investor returns and exec renumeration.

MeteredOut

Chris_b2z said:

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.

In my region, the combined dual fuel reduction in standing charge is £153 per year against the criminal SVT rate while the uplift in unit rate is only 0.3% for gas and 1.5% for electric. The Fixed Lighter 12 v3 tariff really is worth considering if you are a low energy user and the option is always there to switch to another BG tariff should prices change later in the year.

The only downside is that you'll have to live with the guilt of reducing your contribution to infrastructure improvements, energy industry profits, investor returns and exec renumeration.

You can fool yourself that that is the case if you want, but you're still paying the same as someone paying the price cap standing charge. It's just that BG will be collecting some of it via the unit rate and passing it on that way.

xflare

Im a very very low energy user, so these standing charges have really hit me hard - my bill didnt actually go down in April due to those increases.

I too would save about 150 a year in duel fuel standing charges, while the unit rate on my current tariff would have to drop to something like 10p before it equaled the saving on the BG tariff.  The only thing that might come close is that Octopus Agile Tariff - but there are risks with that.

wrf12345

Low user who joined BG a couple of years ago because they had a similar fix with low s/c but constant hassle from them about increasing the direct debit (whilst always in credit) and half hour wait to get someone on chat, now on Octopus Agile but this would probably be cheaper for me but maybe fifty quid rather than £150 so won't bother unless Octopus does something annoying. But good to see companies offering some variation on s/c's, hopefully spur Octopus to do something. Should have switched sooner but the free govn handout blunted the increases and did not make it worth the hassle until after BG fitted smart meters. Be careful when inputting usage figures to keep the DD down as low as possible, BG will try to double or triple it given half a chance.

MeteredOut

xflare said:

Im a very very low energy user, so these standing charges have really hit me hard - my bill didnt actually go down in April due to those increases.

I too would save about 150 a year in duel fuel standing charges, while the unit rate on my current tariff would have to drop to something like 10p before it equaled the saving on the BG tariff.  The only thing that might come close is that Octopus Agile Tariff - but there are risks with that.

So, are you switching to BG? Seems like a no-brainer unless you do want to move to Agile or Tracker.

xflare

MeteredOut said:

xflare said:

Im a very very low energy user, so these standing charges have really hit me hard - my bill didnt actually go down in April due to those increases.

I too would save about 150 a year in duel fuel standing charges, while the unit rate on my current tariff would have to drop to something like 10p before it equaled the saving on the BG tariff.  The only thing that might come close is that Octopus Agile Tariff - but there are risks with that.

So, are you switching to BG? Seems like a no-brainer unless you do want to move to Agile or Tracker.

Im thinking about it, but some of the posts here about BG are making me hesitant.

...and I don't think even Octopus Agile would come even close to that saving.

Baldeagle095

I moved into house last year and was on British Gas' SVT. I changed tariffs today to Fixed Lighter 12month tariff.
My DD has gone from £146 per month to £84 - saving £750 per annum approx.
Basically the standing charge has reduced dramatically while unit costs have marginally increased.
I would advise all low usage customers to do the same. Do the calculations first though!

bristolleedsfan

MeteredOut said:

Chris_b2z said:

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.

In my region, the combined dual fuel reduction in standing charge is £153 per year against the criminal SVT rate while the uplift in unit rate is only 0.3% for gas and 1.5% for electric. The Fixed Lighter 12 v3 tariff really is worth considering if you are a low energy user and the option is always there to switch to another BG tariff should prices change later in the year.

The only downside is that you'll have to live with the guilt of reducing your contribution to infrastructure improvements, energy industry profits, investor returns and exec renumeration.

You can fool yourself that that is the case if you want, but you're still paying the same as someone paying the price cap standing charge. It's just that BG will be collecting some of it via the unit rate and passing it on that way.

This quote is based on so called typical average usage 11500 E,  2700 G

What you have said is clearly not true for low/lower usage which the post you quoted/replied to was highlighting.

GingerTim

Baldeagle095 said:

I moved into house last year and was on British Gas' SVT. I changed tariffs today to Fixed Lighter 12month tariff.
My DD has gone from £146 per month to £84 - saving £750 per annum approx.
Basically the standing charge has reduced dramatically while unit costs have marginally increased.
I would advise all low usage customers to do the same. Do the calculations first though!

But there's no way the reduction in the standing charge will save you £750/year. Even allowing for a saving of up to 30p/day on the standing charge on that tariff, that's only £109/year. 

Chris_b2z

British Gas have opened up the market with a range of competitive tariffs to suit all consumers.
Low energy users can make significant savings through much lower standing charges on the Fixed Lighter 12M tariff.
Higher energy users can benefit through reduced unit rates and standing charges on the Fixed Tariff 12M.
Even those MSE members that love high standing charges can continue with Ofgem price cap on SVT.
Everyone's happy!