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

Spoonie_Turtle

MikeJXE said:

molerat said:

An interesting piece

https://www.medwayadvice.org.uk/news/why-standing-charges-are-fairer-you-might-think

But don't believe all you read 

 A clip from that piece 

"Standing charges are increasing to ensure a fairer transition to net zero

Standing charges for electricity have doubled since 2021, from £86 to £186 a year (for a typical household paying by direct debit),"

How can that be true, ?

I'm not a typical household and there are the same days in a year for me as everyone else 

Presumably it means households on the SVT, single rate for electricity.  Economy 7 or other complex metering tariffs likely have different standing charges, as may other tariffs that aren't the standard variable.

Edit: and regional averaging as mentioned beforr my comment.

MikeJXE

So like the Horizon inquiry 

it does mean what it says there 

it’s not meant to be read that way 

wrf12345

"What you are again saying is you want higher and average users to subsidise low users, that is the opposite of "fair" that you claim you want. ToU for usage makes rational sense, it removes subsidy, abolishing the standing charge would add subsidy and is not rational."

We already have small IC car and electric car drivers paying zero road tax whilst the SCM's in Mercs etc are paying much more than the average, for instance - in recognition of the terrible damage they are doing to the environment. And you know full well that the average user and below will pay either less or the same if the s/c is worked into a flat rate unit charge, it is true that people with solar will get the max benefit but again they are helping out both the environment and the grid, and should be getting net metering as well, IMO.

BarelySentientAI

wrf12345 said:

 they are helping out both the environment and the grid, and should be getting net metering as well, IMO.

Only on a ToU basis.

stripling

BarelySentientAI said:

Chris_b2z said:

The French system seems so much simpler and fairer. Those that need a higher rating supply pay higher standing charge with 70% of households selecting the 6kVA option. Genius!

By definition not simpler when they have 9 choices and we have 1.

Most people here wouldn't have a clue what they need, and would choose the cheapest one because they think everything's too expensive or the most expensive one just in case - then either start complaining "why has my charge gone up without my consent", or be paying more than they already do.

This is really not likely.

When people run energy price comparisons on Go Compare or whatever they can insert their annual Kwh usage. It is on their bills all they have to do is copy it into their application. 

Most of Europe have these kinds of tariffs - banded by use. I had it in Spain - it's tricky when you first sign up when you first move there but energy companies advise you and readjust your tariff if it's out. 

Spain doesn't cut you off immediately but if you exceed the energy limit too often - they'll automatically put you up a band.  There's software dealing with this stuff and just like France there's no drama..  It's not a pick-and-mix sweetie system - the energy companies know your usage and you are offered the appropriate bands 

It is a fairer system. People who use less shouldn't be paying such high SCs  - and the usual excuse for high service charges - elderly or disabled etc., can easily be rebanded to a lower band with a medical certificate or whatever.  

But then as I've said before, apart from Britain and Portugal, European countries all have state-owned national grids.  

wrf12345

"But then as I've said before, apart from Britain and Portugal, European countries all have state-owned national grids.  "

And the UK has Ofcom...

MouldyOldDough

When will standing charges be linked to the actual usage of the power ?

Here is last weeks electricity use for us - 3 bed semi.

We are low use users - and even at peak use - almost half the cost are standing charges

How can the government want people to reduce usage but not make it worthwhile financially ?

it should be a additional charge - say 5p per unit used.....

MikeJXE

MouldyOldDough said:

When will standing charges be linked to the actual usage of the power ?

Here is last weeks electricity use for us - 3 bed semi.

We are low use users - and even at peak use - almost half the cost are standing charges

How can the government want people to reduce usage but not make it worthwhile financially ?

it should be a additional charge - say 5p per unit used.....

Lucky you, my rates and charges for this last 12 months are 

Electric SC £173 Usage £121
Gas SC       £96  Usage £164 

Totals.   SC £269  Usage £285

My heating is on at 18 degrees  24 hours per day 

Why should I try to cut down 

MouldyOldDough

MikeJXE said:

MouldyOldDough said:

When will standing charges be linked to the actual usage of the power ?

Here is last weeks electricity use for us - 3 bed semi.

We are low use users - and even at peak use - almost half the cost are standing charges

How can the government want people to reduce usage but not make it worthwhile financially ?

it should be a additional charge - say 5p per unit used.....

Lucky you, my rates and charges for this last 12 months are 

Electric SC £173 Usage £121
Gas SC       £96  Usage £164 

Totals.   SC £269  Usage £285

My heating is on at 18 degrees  24 hours per day 

Why should I try to cut down 

Its up to you - but for the planet and your bank account for starters !

Ildhund

MouldyOldDough said:

When will standing charges be linked to the actual usage of the power ?

When it becomes reasonable to do so, which I suspect will be never.

You live in a semi-detached house. It costs exactly the same - about £200 a year - to deliver electricity to you as to your neighbours, using just the same cables, substations, pylons and so on that all have to be installed and maintained. If your neighbours are less frugal than you - perhaps a family with a couple of energy-expensive teenagers with their own heated rooms, computers, gaming consoles and televisions - they're probably paying much more than you for the electricity they use. Why should they also pay much more than you towards the delivery costs and other stuff that make up the standing charge? 

You may be able to find a supplier who charges less than £200 a year for delivery, but correspondingly more for each unit of electricity you use.