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

MattMattMattUK

wrf12345 said:

But you should be paying a fixed charge in addition to the cost per litre when you fill up, otherwise someone filling up a motorcycle or small car is taking an unfair advantage of a Merc owner who would be paying slightly less per litre if there was an additional fixed charge. Same with the supermarket, can't have misers going in there expecting to just spend a quid and not contribute enough to the distribution/heating/pension costs. Just won't do, might show the energy companies up!

Ah, another strawman, what a surprise. 

Energy suppliers are required to build and maintain a network that provides energy on demand at any time of day directly to your home, petrol stations and supermarkets are not. If you go and collect your own energy, bottled gas for example, there is no standing charge.

DE_612183

MattMattMattUK said:

wrf12345 said:

But you should be paying a fixed charge in addition to the cost per litre when you fill up, otherwise someone filling up a motorcycle or small car is taking an unfair advantage of a Merc owner who would be paying slightly less per litre if there was an additional fixed charge. Same with the supermarket, can't have misers going in there expecting to just spend a quid and not contribute enough to the distribution/heating/pension costs. Just won't do, might show the energy companies up!

Ah, another strawman, what a surprise. 

Energy suppliers are required to build and maintain a network that provides energy on demand at any time of day directly to your home, petrol stations and supermarkets are not. If you go and collect your own energy, bottled gas for example, there is no standing charge.

And taking this to the next logical step - if you want to get Tesco to bring your shopping to your door - what do they do? Charge you a fixed(ish) charge.

The_Green_Hornet

DE_612183 said:

MattMattMattUK said:

wrf12345 said:

But you should be paying a fixed charge in addition to the cost per litre when you fill up, otherwise someone filling up a motorcycle or small car is taking an unfair advantage of a Merc owner who would be paying slightly less per litre if there was an additional fixed charge. Same with the supermarket, can't have misers going in there expecting to just spend a quid and not contribute enough to the distribution/heating/pension costs. Just won't do, might show the energy companies up!

Ah, another strawman, what a surprise. 

Energy suppliers are required to build and maintain a network that provides energy on demand at any time of day directly to your home, petrol stations and supermarkets are not. If you go and collect your own energy, bottled gas for example, there is no standing charge.

And taking this to the next logical step - if you want to get Tesco to bring your shopping to your door - what do they do? Charge you a fixed(ish) charge.

However the delivery charge is nowhere near high enough to cover the service provided so it is subsidised by increased prices on all products whether they are delivered or collected in store.

EssexHebridean

DE_612183 said:

MattMattMattUK said:

wrf12345 said:

But you should be paying a fixed charge in addition to the cost per litre when you fill up, otherwise someone filling up a motorcycle or small car is taking an unfair advantage of a Merc owner who would be paying slightly less per litre if there was an additional fixed charge. Same with the supermarket, can't have misers going in there expecting to just spend a quid and not contribute enough to the distribution/heating/pension costs. Just won't do, might show the energy companies up!

Ah, another strawman, what a surprise. 

Energy suppliers are required to build and maintain a network that provides energy on demand at any time of day directly to your home, petrol stations and supermarkets are not. If you go and collect your own energy, bottled gas for example, there is no standing charge.

And taking this to the next logical step - if you want to get Tesco to bring your shopping to your door - what do they do? Charge you a fixed(ish) charge.

Worse than that even - they charge you MORE for wanting deliveries at the really popular times, where if you’re prepared to get up at the crack of dawn for it you can probably only pay £1! 

MouldyOldDough

I assume that most of the pro-standing charge customers - are HIGHER users

And most of the anti-standing charge customers - are LOWER users ?

matt_drummer

MouldyOldDough said:

I assume that most of the pro-standing charge customers - are HIGHER users

And most of the anti-standing charge customers - are LOWER users ?

I think that actually, most people are less selfish than that.

I use less than nothing as a net exporter but I am more than happy to pay the standing charge and believe that it is the fairest way to distribute the fixed costs amongst all of those who use the service.

I am not so sure about SoLR costs though, I think they should have been borne entirely by those customers that benefitted from those suppliers that we all ended up paying for.

MikeJXE

Not necessarily some anti standing charge customers are rich who can afford solar panels that for some covers there entire electric bill and some more 

GingerTim

No solar, no batteries, not rich, very low energy user - and I still think the current standing charge regime is the fairest, least worst way to spread the network/fixed costs. Not sure I would characterise it as a 'pro standing charge' position, though.

Any alternative I've seen put forward tends towards widening inequalities as far as I can see, e.g. loading it onto the unit rate penalises those who use a lot of energy through no fault of their own.

MouldyOldDough

MikeJXE said:

Not necessarily some anti standing charge customers are rich who can afford solar panels that for some covers there entire electric bill and some more 

I am happy with that because they are adding to their "green credentials" but I am a very low user and feel that an unfair charge is added to my monthly bill (sometimes 75% of my bill is SC..)

matt_drummer

MikeJXE said:

Not necessarily some anti standing charge customers are rich who can afford solar panels that for some covers there entire electric bill and some more 

Like me.

I actually pay nothing at all for energy, it's an income.

But, I support the standing charge and would happily pay a little more for the benefits I received if it was used to help somebody less fortunate.

I am not happy to pay more though, just so some disgruntled customers don't have to contribute their fair just because they don't like it.