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Standing charge explain

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  • MattMattMattUK
    MattMattMattUK Posts: 11,082 Forumite
    10,000 Posts Fourth Anniversary Name Dropper
    edited 12 December 2023 at 10:42AM
    Out of interest, is energy in NI subsidised? If one accounts for and removes the profit margin on energy supply the cost in NI is actually below all the allowable costs.

    Edit to add: So from what I can see, no SOLR costs (although they are covered by it), no environmental or social policy costs (for NI these are paid by the UK government) and there potentially is a level of subsidy, although not directly declared as such in the way that the grid and supply operate. 
  • markin
    markin Posts: 3,860 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper Photogenic
    Wind can be 70% for NI when its windy but most the time i look its mostly uk import and Gas.


    https://app.electricitymaps.com/zone/GB-NIR
     
  • GingerTim said:
    Presumably the supermarkets will do just that when there is permanent infrastructure to pipe groceries into your home on demand.
    I love it when MSEers repeatedly try to convince regular consumers that paying a high Standing Charge is such a wonderful concept that we should all embrace.
    Amusing but perfectly understandable.
  • MeteredOut
    MeteredOut Posts: 2,967 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Chris_b2z said:
    GingerTim said:
    Presumably the supermarkets will do just that when there is permanent infrastructure to pipe groceries into your home on demand.
    I love it when MSEers repeatedly try to convince regular consumers that paying a high Standing Charge is such a wonderful concept that we should all embrace.
    Amusing but perfectly understandable.
    What would you suggest as an alternative to pay for maintaining the infrastructure?
  • GingerTim
    GingerTim Posts: 2,583 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 12 December 2023 at 8:22PM
    Chris_b2z said:
    GingerTim said:
    Presumably the supermarkets will do just that when there is permanent infrastructure to pipe groceries into your home on demand.
    I love it when MSEers repeatedly try to convince regular consumers that paying a high Standing Charge is such a wonderful concept that we should all embrace.
    Amusing but perfectly understandable.
    I'm not trying to convince anyone that it's great - just that any alternative I've ever seen proposed on here to maintaining and improving infrastructure is always a much worse idea.

    Daft and spurious comparisons to supermarkets don't help either.
  • Scot_39
    Scot_39 Posts: 3,374 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    Chris_b2z said:
    35har1old said:
    Brie said:
    Interesting that SSE says no standing charge. 

    I've not seen that anywhere before as everyone talks like a standing charge is an absolute necessity - which I've never understood.  Yes we have to pay for infrastructure but we don't pay a SC at Tesco because they need to get their trucks to deliver to stores we just pay for what we actually buy.  
    You are still paying for those trucks but it's just not itemised on the bill
    I guess the big supermarkets could include a Standing Charge of £3 on each bill to cover operating costs while reducing prices by 5%. I wonder why they don't do that.

    Can you imagine the outrage charging a poor oap £3 on a quick visit for a few basics - like say an 80p loaf of bread, a tin of beans and a pint of milk.


  • matelodave
    matelodave Posts: 9,073 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 12 December 2023 at 7:44PM
    But did it cost any less for the supermarket to transport it, probably not. Likewise did the person who stacked the shelves or operated the checkout get paid less because someone only bought a loaf of bread. Your alternative could be to go to the Weetabix factory and buy it direct and then scuttle off to the Warburtons factory for the bread, down to the farm for the milk and up to Heinz for the beans - no, it all goes in one lorry and the cost is shared.

    If I want my stuff delivered to my door, then I pay extra for it.

    In much the same way as standing charges are shared amongst all of us. The leccy and gas come down common cables or pipes. However its not everso easy to go up to Sellafield and get a bucket of leccy. |Gas is easier, you can go and get a cylinder from Calor

    Just because I don't use as as much as you doesn't mean that the bits of infrastructure between you and me are any different or cost any less to install or maintain.

    Lets charge all those who live a long way from where its generated a lot more because there are more pylons and the terrain my be a bit more difficult to access.

    How do you propose to solve the problem. Having a moan doesn't actually come up with a workable idea that doesn't disadvantage someone somewhere. Answers on a postcard to OFGEM please, they are asking for ideas at the moment and so far their best solution seems to be increasing the cost for those who pay on time and up front.

    If you dont want to pay then sort out your own energy supplies, generate it yourself and take on the responsibility of maintaining it yourself.
    Never under estimate the power of stupid people in large numbers
  • Put yourself into the position of a low energy user trying to cut costs as much as possible and finding that no matter how much they reduce heating, etc a large portion of their bill still includes the ever increasing Standing Charge. Sure, it's no big deal for high energy users.
    It really isn't beyond the capability of bean-counters in the 21st century to work out a system where infrastructure costs are absorbed and spread more fairly.
  • Chris_b2z said:

    It really isn't beyond the capability of bean-counters in the 21st century to work out a system where infrastructure costs are absorbed and spread more fairly.
    Sorry, what's more fair than sharing it amongst everyone that uses and benefits from the infrastructure??
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