Electricity Daily Standing Charge.

bristolleedsfan

Centrica, Octopus and Ovo Chiefs are on record saying Standing Charges should be abolished, just need one supplier to put words into action and launch 12 month domestic fixed rate tariff with Zero standing charge as Octopus have done with a couple of Business 12 month fixed tariffs.

https://www.standard.co.uk/news/politics/british-gas-centrica-graham-british-sun-b1091360.html

Chrysalis

bristolleedsfan said:

Centrica, Octopus and Ovo Chiefs are on record saying Standing Charges should be abolished, just need one supplier to put words into action and launch 12 month domestic fixed rate tariff with Zero standing charge as Octopus have done with a couple of Business 12 month fixed tariffs.

https://www.standard.co.uk/news/politics/british-gas-centrica-graham-british-sun-b1091360.html

Yep put words into action.

MattMattMattUK

bristolleedsfan said:

Centrica, Octopus and Ovo Chiefs are on record saying Standing Charges should be abolished, just need one supplier to put words into action and launch 12 month domestic fixed rate tariff with Zero standing charge as Octopus have done with a couple of Business 12 month fixed tariffs.

https://www.standard.co.uk/news/politics/british-gas-centrica-graham-british-sun-b1091360.html

There is a difference between what they say in press releases, designed to curry favour with an ignorant public and a febrile media and what is a sensible course of action. There is also the factor that whatever scheme was introduced to replace Standing Charges would be designed to insulate suppliers from the potential consequences, for them it would be cost/revenue neutral. 

MultiFuelBurner

bristolleedsfan said:

Centrica, Octopus and Ovo Chiefs are on record saying Standing Charges should be abolished, just need one supplier to put words into action and launch 12 month domestic fixed rate tariff with Zero standing charge as Octopus have done with a couple of Business 12 month fixed tariffs.

https://www.standard.co.uk/news/politics/british-gas-centrica-graham-british-sun-b1091360.html

Talk is cheap (so the saying goes)

And whilst you can see such a tariff attracting many low use users with no standing charge the damning factor will be the market stabilisation charge they have to pay the suppliers these new customers leave. Meaning a major loss leading initiative.

Scot_39

Or they could recover it from most customers by doing as Utilita prepay - just imposing a higher rate on such a low number of units (still 2?) the SC is paid anyway.

As to just taljk - It depends if big players are allowed the flexibility under the 2014 tariff simplification regs - they might not be allowed.

Just as the regs on new suppliers with sub  xx,000 ( 50000 was it) customers were different re RMI  support etc..

bristolleedsfan

Scot_39 said:

As to just taljk - It depends if big players are allowed the flexibility under the 2014 tariff simplification regs - they might not be allowed.

https://www.moneysavingexpert.com/utilities/electricity-standing-charge/

"In 2016, Ofgem removed the requirement for tariffs to have a standing charge following recommendations by the Competition and Markets Authority"

NorfolkCanary

bristolleedsfan said:

snip

No thanks. Using my current usage and Octopus' current flexible rates,  +£0.025p on each unit (day/night/gas) it would save me the sum total of £55. I can't see suppliers sticking with 2.5p over non SC charges to compensate, nor should they, based on that it's a no from me

bristolleedsfan

NorfolkCanary said:

bristolleedsfan said:

snip

No thanks. Using my current usage and Octopus' current flexible rates,  +£0.025p on each unit (day/night/gas) it would save me the sum total of £55. I can't see suppliers sticking with 2.5p over non SC charges to compensate, nor should they, based on that it's a no from me

Flexible can keep current charging method, how about others being given a choice, exit fees on fixed rate tariffs favour higher users as well. ?  

"just need one supplier to put words into action and launch 12 month domestic fixed rate tariff with Zero standing charge as Octopus have done with a couple of Business 12 month fixed tariffs"

matt_drummer

bristolleedsfan said:

NorfolkCanary said:

bristolleedsfan said:

snip

No thanks. Using my current usage and Octopus' current flexible rates,  +£0.025p on each unit (day/night/gas) it would save me the sum total of £55. I can't see suppliers sticking with 2.5p over non SC charges to compensate, nor should they, based on that it's a no from me

Flexible can keep current charging method, how about others being given a choice ?  

"just need one supplier to put words into action and launch 12 month domestic fixed rate tariff with Zero standing charge as Octopus have done with a couple of Business 12 month fixed tariffs"

How will the network guarantee to generate all of the funds necessary to cover the fixed costs?

Surely if some customers start paying less towards standing charges others will need to pay more?

With the fixed costs spread equally over all of the customers the costs are guaranteed to be covered, once you introduce the opportunity for some customers to pay less then the guaranteed income is no longer guaranteed, there could be a shortfall.

And there is still the problem that many of the heaviest users of electricity are the poorest, the sick and the elderly and these people will be hit the hardest.

[Deleted User]

I think someone on here mentioned something similar is already done overseas (might have been Dolor), they restrict your max KwH if you pay less SC.

Nearly right but no cigar. The power limit has nothing to do with kWh: the tariff is a restriction on kW (power) at peak times. For kVA read kW. If a consumer can limit their power draw to a single kettle or less (<3kW) at peak times they could end up paying 58% less in standing charges than someone wanting 15kW for say a heat pump plus.