Abolish standing charges

Netexporter

It funds other bull---- which I don't think they should do, such as the meter inspectors,  grant schemes, bailouts for failed suppliers.

Suppliers are legally bound to inspect their meters periodically.

Grant schemes help to reduce the energy consumption, often of less well-off people.

Failed suppliers aren't bailed out. The credit of the customers is protected. Nothing goes to the failed supplier.

MikeJXE

Netexporter said:

It funds other bull---- which I don't think they should do, such as the meter inspectors,  grant schemes, bailouts for failed suppliers.

Suppliers are legally bound to inspect their meters periodically.

Grant schemes help to reduce the energy consumption, often of less well-off people.

Failed suppliers aren't bailed out. The credit of the customers is protected. Nothing goes to the failed supplier.

Is that true ? 

If the funds are protected and the funds are with the supplier how do the funds get reclaimed if the supplier has gone bust 

snowqueen555

Netexporter said:

It funds other bull---- which I don't think they should do, such as the meter inspectors,  grant schemes, bailouts for failed suppliers.

Suppliers are legally bound to inspect their meters periodically.

Grant schemes help to reduce the energy consumption, often of less well-off people.

Failed suppliers aren't bailed out. The credit of the customers is protected. Nothing goes to the failed supplier.

Yes I am not saying these are bad things, I'm saying a standing charge shouldn't be funding them. What other industries give a separate charge for this? The use case to maintain a publically used network I can sorta agree with, but not the others.

From what I can see, the bailouts were consumer funded, a google on the subject shows this is clearly the case. Even looking on British Gas' official website has the below.

A standing charge is a fixed daily amount that you pay on your bill regardless of how much energy you use. Standing charges apply to both gas and electricity and will vary by supplier, where you live, how you pay and what meter you have.

Standing charges cover the suppliers cost of:

• Maintaining the energy supply network that delivers gas and electricity to your home
• Visiting homes to take meter readings
• Supporting government social and environmental schemes like the Warm Home Discount
• Failed suppliers exiting the energy market – electricity only

It’s the cost of having a gas or electricity supply – like line rental for energy.

https://www.britishgas.co.uk/energy/guides/standing-charges.html 

Netexporter

Ofgem pays the money into the new SoLR accounts and then gets it back, over time, through the SC.

The failed suppliers haven't got any money, that's why they are in administration.

Hoenir

snowqueen555 said:

From what I can see, the bailouts were consumer funded, a google on the subject shows this is clearly the case. 

Consumers are in the main also the country's taxpayers. Who else is there left to pick up the bill? 

MikeJXE

Netexporter said:

Ofgem pays the money into the new SoLR accounts and then gets it back, over time, through the SC.

The failed suppliers haven't got any money, that's why they are in administration.

So where is the money they were paid by their customers  ?

Gone to the share holders ?

 Why do we all have to pay for that ? 

 There are loads of suppliers gone bust so Why hasn't that been stopped ? Or has it ?

Netexporter

There are loads of suppliers gone bust so Why hasn't that been stopped ? Or has it ?

The last lot of failures was essentially a failure of the regulator. They should have been auditing suppliers offering bargain basement prices to ensure they had hedged sufficiently. They didn't, so when the Ukraine war broke out, the failed suppliers couldn't afford to buy wholesale energy on the spot market, so had to fold.

Whether any lesson have been learnt is a moot point.

MikeJXE

I guess they haven't 

Are they ever ? 

snowqueen555

MikeJXE said:

Netexporter said:

Ofgem pays the money into the new SoLR accounts and then gets it back, over time, through the SC.

The failed suppliers haven't got any money, that's why they are in administration.

So where is the money they were paid by their customers  ?

Gone to the share holders ?

 Why do we all have to pay for that ? 

 There are loads of suppliers gone bust so Why hasn't that been stopped ? Or has it ?

It is much like any other market, politicians and big business cause the problems and it is always the taxpayer that gets the bill or suffers.

The bailed out banks, the housing market, the decline of our public services.

The social contract of this country failed a few decades ago.

MikeJXE

And we put them there 

And will again whoever gets in