Octopus electricity to increase standing charge by 19.6% on 15 Feb 2024

EarlRobo

Octopus Energy will be increasing their electricity standing charge on 15th February 2024 to 49.77p a day [£181.66/annum] from currently 41.61p/day, which is a 19.6% increase. The current rate of inflation is 5.25% hence 19.6% is 3.7 times the current rate of inflation, which is stealth profiteering.

la531983

Well, its not really though, is it?

Alnat1

It's going up to the price that all the customers on SVT are paying. 

la531983

EarlRobo said:

The current rate of inflation is 5.25% 

No it isnt.

Scot_39

You are aware the average Ofgem SVT cap is currently 53p.


The full range c38.5p to 62p by region.

See

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/get-energy-price-cap-standing-charges-and-unit-rates-region

Sounds more like coming off a really cheap deal to a more normal level than a rip off.

At one stage Octopuse we're charging about 2% less than Ofgem cap - so most others - on their SVTs.

It's not profiteering if it merely reflects real world costs.

And as Ofgem has been loading standing charges for last 2 years - things like SoLR and now other policy changes not yo mention renewables grid costs  - electric standing charges remain close to double old levels.

MattMattMattUK

EarlRobo said:

Octopus Energy will be increasing their electricity standing charge on 15th February 2024

They may be for some tariffs, although certainly are not for all, for most users any change will not happen until April when the next price cap figures come into effect.  The only situation that would make sense for an increase to happen in mid-February is that you are coming off a fixed deal and going onto another tariff. 

EarlRobo said:

to 49.77p a day [£181.66/annum] from currently 41.61p/day, which is a 19.6% increase. 

Even if it is true, and it is unlikely that it is, especially as the current standing charge in most regions is already higher than 41.61p per day, in most regions it is already over 50p.
https://www.ofgem.gov.uk/information-consumers/energy-advice-households/get-energy-price-cap-standing-charges-and-unit-rates-region

EarlRobo said:

The current rate of inflation is 5.25% hence 19.6% is 3.7 times the current rate of inflation, which is stealth profiteering.

Even if it were rising by the amount you claim, something not rising in line with inflation is not "profiteering", something not rising with inflation on what would be a published tariff is not "stealth profiteering". Inflation is also not 5.25%, that is BoE base rate. You should take the time to educate yourself on what actually happens to the standing charge and what the money is used to fund.

MeteredOut

EarlRobo said:

Octopus Energy will be increasing their electricity standing charge on 15th February 2024 to 49.77p a day [£181.66/annum] from currently 41.61p/day, which is a 19.6% increase. The current rate of inflation is 5.25% hence 19.6% is 3.7 times the current rate of inflation, which is stealth profiteering.

Even if it was profiteering (which its not), it can hardly be called stealthy. Or are you saying they did not inform you?