Energy Price Cap comes down - but standing charge goes up!!

magickmagpie

Just had a check of my new tariff after the reduction in the energy price cap. I used to pay 33.106 per KWh with a standing charge of 58.87p. Its now 31.096 per KWh and a standing charge of 61.81p. So my monthly bill (worked out on my average usage) will go down by about £2 per month. However, these high standing charges really penalise low energy users over high energy users and I thought the whole idea was for us all to reduce our usage. This is hardly an incentive to do so. It would surely be fairer (and more of an incentive to reduce usage) to have a lower standing charge for low energy users and a higher one for high energy users?

chris_n

Not another one!

QrizB

magickmagpie said:

Just had a check of my new tariff after the reduction in the energy price cap. I used to pay 33.106 per KWh with a standing charge of 58.87p. Its now 31.096 per KWh and a standing charge of 61.81p. So my monthly bill (worked out on my average usage) will go down by about £2 per month. However, these high standing charges really penalise low energy users over high energy users and I thought the whole idea was for us all to reduce our usage. This is hardly an incentive to do so. It would surely be fairer (and more of an incentive to reduce usage) to have a lower standing charge for low energy users and a higher one for high energy users?

See this thread, a couple of lines down the page from yours:

https://forums.moneysavingexpert.com/discussion/6457244/energy-prices-to-go-down-but-standing-charges-remain

matt_drummer

magickmagpie said:

Just had a check of my new tariff after the reduction in the energy price cap. I used to pay 33.106 per KWh with a standing charge of 58.87p. Its now 31.096 per KWh and a standing charge of 61.81p. So my monthly bill (worked out on my average usage) will go down by about £2 per month. However, these high standing charges really penalise low energy users over high energy users and I thought the whole idea was for us all to reduce our usage. This is hardly an incentive to do so. It would surely be fairer (and more of an incentive to reduce usage) to have a lower standing charge for low energy users and a higher one for high energy users?

Surely your bill will be lower if you use less?

There is an incentive to use less, your bill will be lower!

The standing charges don't penalise those with less money.

If standing charges were removed or reduced I would pay next to nothing but I am a high user of electricity.

Work that one out!

Spoonie_Turtle

Are you sure that previous standing charge was including VAT?  58.87x1.05=61.8135

I don't know of any region with standing charges that have increased, unless you've maybe come off a fix (but were fixes a year ago having that high standing charges?).

magickmagpie

Spoonie_Turtle said:

Are you sure that previous standing charge was including VAT?  58.87x1.05=61.8135

I don't know of any region with standing charges that have increased, unless you've maybe come off a fix (but were fixes a year ago having that high standing charges?).

I've not come off a fix - but I'll have to check the tariff information regarding the VAT - I took the previous numbers from my bill (the VAT being added separately) and the current ones from the Scottish Power website - not sure if that includes VAT or not as it's not very clear on the website, but it would be weird for them to show the KWh rate without VAT (which it seems to be) and the SC rate with VAT!!

Spoonie_Turtle

The previous rates plus VAT look right for North Wales & Mersey, and the current rates (including VAT already) also tally according to https://www.moneysavingexpert.com/utilities/what-are-the-price-cap-unit-rates-/#unitrates