Standing charges - Postcode lottery

shadewood_mole

I've been looking at the Ofgem price cap details for July onwards. There is a huge variance in the daily standing charges by region for direct debit customers.  The 'average' electricity standing charge is around 53p however in the Manweb area this is nearer 62p (the highest in the country).  A few miles down the road it's only 52p.  In London it's only 38p.  I expect there are geographical reasons for some of this variance but I'd like an explanation as to why I'm paying 60% more per day than in the capital. 

matt_drummer

London is much more densely populated than any other area.

The costs of supply per customer are lower.

The downside of living in London is the price of the property there!

People who live in London could ask you why their homes cost so much more than they do where you live?

shadewood_mole

Fair comment about the difference in house prices and that was an extreme example, but it still seems strange that someone in the next post code up here is getting a much lower standing charge.  WA4 is 62p whilst WA3 is only 52p  Those are both Warrington post codes but one is with Manweb (as was) and the other is with Norweb.  Can't imagine the supply density is that different.

matt_drummer

The standing charge reflects the costs in an area.

There has to be a `border' between different regions somewhere.

10p a day is £36.50 a year, not a huge difference.

dunstonh

Fair comment about the difference in house prices and that was an extreme example, but it still seems strange that someone in the next post code up here is getting a much lower standing charge. 

Wherever there is a line or boundary, you are always going to get people on just the other side of it.  

[Deleted User]

Hi,

dunstonh said:

Wherever there is a line or boundary, you are always going to get people on just the other side of it. 

aye, indeed.

Just come off a BG fix at end of June, my standing charge has gone from, Electric: 20p to 61p, Gas: 14p to 29p.

Though, as OP mentioned post code, can send a first class letter from John O'Groats to Lands End (837 miles) for same price as from WA3 to WA4 (walking distance).