Standing Charges Ofgem review

QrizB

Chris_b2z said:

 ... £13 million spent each year since smart meters were introduced equates to around £0.5 Billion just in marketing.

That's only true if smart meter marketing has been ongoing for 38 years (500/13=38). I don't recall any smart meter marketing in 1985?

Chris_b2z said:

How many hospitals would that build?

About half of one, per the post above and a relatively recent NAO report.

Netexporter

A modest proposal:

People who have generating capacity, from solar, wind, batteries etc, have an separate export MPAN. Why not have a standing charge on those MPANs and deduct the proportionate amount from import MPANs?

People who export impose costs on the grid operators. They also get paid for their exports, so it doesn't seem unreasonable for them to pick up some of the tab.

Consumers who can't have generating capacity, generally the most economically disadvantaged, would have a lower standing charge.

What do the Wot-I-Reckon community think?

debitcardmayhem

Netexporter said:

A modest proposal:

People who have generating capacity, from solar, wind, batteries etc, have an separate export MPAN. Why not have a standing charge on those MPANs and deduct the proportionate amount from import MPANs?

People who export impose costs on the grid operators. They also get paid for their exports, so it doesn't seem unreasonable for them to pick up some of the tab.

Consumers who can't have generating capacity, generally the most economically disadvantaged, would have a lower standing charge.

What do the Wot-I-Reckon community think?

I export, I don’t mind paying sc for that too, but on a typical British day I wouldn’t expect to pay sc unless it’s a non+British day ergo more than I export.

gt94sss2

Netexporter said:

A modest proposal:

People who have generating capacity, from solar, wind, batteries etc, have an separate export MPAN. Why not have a standing charge on those MPANs and deduct the proportionate amount from import MPANs?

People who export impose costs on the grid operators. They also get paid for their exports, so it doesn't seem unreasonable for them to pick up some of the tab.

I suspect that the number of domestic customers who export energy to the grid is a relatively small percentage. As such, even if they paid an extra charge it wouldn't really change the needle re: the standing charge the rest of us pay.

That and those exporting could argue that they are preventing the capital investment needed to build another power station..

What I think/hope is more likely is that future Demand Flexibility schemes do not pay for exported energy but increase the amount for energy saved.

Qyburn

debitcardmayhem said:

I export, I don’t mind paying sc for that too, but on a typical British day I wouldn’t expect to pay sc unless it’s a non+British day ergo more than I export.

Isn't that the same flawed argument? 

pip895

I think some of the charges currently in the electricity standing charge should be transferred to the gas standing charge.  I think any move that would put up the price of electricity/kWh relative to gas would be counterproductive.  Heat pumps need to have a clear economic advantage over gas boilers if the UK is going to meet its environmental obligations.

MultiFuelBurner

pip895 said:

I think some of the charges currently in the electricity standing charge should be transferred to the gas standing charge.  I think any move that would put up the price of electricity/kWh relative to gas would be counterproductive.  Heat pumps need to have a clear economic advantage over gas boilers if the UK is going to meet its environmental obligations.

Its worth the gamble now for many for the following reasons (I do agree with you that whilst electricity is 4x the price of gas it isn't much of an incentive)

So by my calculations now if you need to replace your gas boiler what is that £1.5k-2k?

So instead take the £7500 grant for a heat pump and for over 50% of people that covers the shole install. Effectively you are £1.5-2k up as you don't have to buy a new gas boiler.

Most new heat pumps are challenging the cop of 3.5 to 4 but realistically it will cost you 25% more than your gas bill but you have that £1.5k-2k in your pocket from not having a new gas boiler.

Don't forget getting ruc of gas that's £100 a year standing charge saving as well.

It is very close to making financial sense but not quite there.

wrf12345

Just heard from the local supermarket and gas station, introducing a charge every time you use their facilities to cover overheads and transport, just isn't fair that miserly users are supported by the big spenders... oh, forgot, there is actually some real competition in those sectors so must be imagining it...

MattMattMattUK

wrf12345 said:

Just heard from the local supermarket and gas station, introducing a charge every time you use their facilities to cover overheads and transport, just isn't fair that miserly users are supported by the big spenders... oh, forgot, there is actually some real competition in those sectors so must be imagining it...

Do the local supermarket and "gas station" or petrol station as they are called in the UK, maintain an on demand supply directly connected to your home? 

Scot_39

wrf12345 said:

Just heard from the local supermarket and gas station, introducing a charge every time you use their facilities to cover overheads and transport, just isn't fair that miserly users are supported by the big spenders... oh, forgot, there is actually some real competition in those sectors so must be imagining it...

Fairly meaningless comparison.

And you do realise that there are not 27m gas stations - we tend to call them petrol or filling stations in uk or supermarkets.


Petrol pumps normally have a minimum delivery - a few litres- maybe around what you might call a gallon too.


Everyone has to drive to the same common collection points - filling stations or stores.

Gas and electric is delivered to your home.

If I get my supermarket to deliver my shopping they charge not just one fee but potentially 2 - a fixed fee if I buy below a cut off total (c£40iirc) and a variable time of use demand driven delivery fee as well - regardless of spend.