Standing Charge up - unit prices down (the logic?)

The_Green_Hornet

Here's a pie chart of how the cost of the standing charge is currently apportioned on a typical dual-fuel bill, according to Ofgem.



Martin Lewis: Why are energy standing charges so high? What can be done? (moneysavingexpert.com)

GingerTim

The_Green_Hornet said:

Here's a pie chart of how the cost of the standing charge is currently apportioned on a typical dual-fuel bill, according to Ofgem.



Martin Lewis: Why are energy standing charges so high? What can be done? (moneysavingexpert.com)

With 'profit' making up an enormous 1.9% of the standing charge, I think we can put to bed the idea that it's some vast, greed-fuelled profit-making scheme.

MultiFuelBurner

Of course operating costs is very high and stands out considering how much AI can allegedly save these days.

Baldeagle095

Thank goodness Income Tax is not assessed on the same basis as Heat and Light costs. 

There would be no Personal Allowance.

MattMattMattUK

Baldeagle095 said:

Thank goodness Income Tax is not assessed on the same basis as Heat and Light costs. 

There would be no Personal Allowance.

There probably should not be. We have the largest tax free allowance in the EU, the next highest us €8,500, the average is around €2,600 and in many countries it is zero or a few hundred Euros. No other mid or major economy let's people earn so much without paying tax apart from the USA, who have far fewer social protections than the UK.

Chrysalis

Octopus founder has posted his thoughts on the "out of control" SC, as well as other regulatory issues, an interesting watch, Note Centrica also support his view on the SC publically.  Glad to see resistance is building up on the nonsense.

https://www.youtube.com/watch?v=yXxDiwr-Kbo

njkmr

From the horses mouth then. As per video kindly supplied above.
Standing charges are too high and out of control....!
Agreed.

MattMattMattUK

Chrysalis said:

Octopus founder has posted his thoughts on the "out of control" SC, as well as other regulatory issues, an interesting watch, Note Centrica also support his view on the SC publically.  Glad to see resistance is building up on the nonsense.

https://www.youtube.com/watch?v=yXxDiwr-Kbo

njkmr said:

From the horses mouth then. As per video kindly supplied above.
Standing charges are too high and out of control....!
Agreed.

Yes, it is a nice message, preaching to the masses, a good little bit of marketing and boosting image amongst a group of people. In the energy sector, publicly come out against the standing charge results becoming more popular with a subset of people, customers will think that they are fighting for them, without realising that the standing charge is a sensible way to pass on the fixed costs to consumers. Of course the group who constantly demand that others subsidise them will lap it up, because as usual, they want someone else to pay, rather than pay themselves. 

EssexHebridean

prowla said:

Prices go up = profits for the supplier.

Prices fall = how can we keep our profits up?

Ah - let's swap them to the standing charge!

Prices go up = profits for the supplier. No - supplier profit is currently capped at 1.9% overall, and many made losses during the worst of the energy crisis. (Hence why so  many failed, leading to people being SOLR'd all over the place)

Prices fall = how can we keep our profits up? Not in the suppliers hands due to the 1.9% cap on profits. Thankfully, they are at least now back in the position of being able to make some profit, albeit small.

Ah - let's swap them to the standing charge! And making it a Hat-Trick - another "wrong" - it is NOT the suppliers decision to increase the SC. 

Reading this thread could already have given you some of this information, and just a little reading on the forum generally could have left you well enough informed that you would not have fallen into the trap of believing, and worse, perpetuating these fallacies. While I'm not a fan of berating those who don't know something purely for their lack of knowledge as we all have things which we don't know - the best way of gaining knowledge is by asking questions, and listening to the answers, then checking out details using reputable sources where needed. Ignorance is not an excuse for writing outlandish theories on the internet while claiming with determination that they are "ALL TRUE!" 

Chrysalis

MattMattMattUK said:

Chrysalis said:

Octopus founder has posted his thoughts on the "out of control" SC, as well as other regulatory issues, an interesting watch, Note Centrica also support his view on the SC publically.  Glad to see resistance is building up on the nonsense.

https://www.youtube.com/watch?v=yXxDiwr-Kbo

njkmr said:

From the horses mouth then. As per video kindly supplied above.
Standing charges are too high and out of control....!
Agreed.

Yes, it is a nice message, preaching to the masses, a good little bit of marketing and boosting image amongst a group of people. In the energy sector, publicly come out against the standing charge results becoming more popular with a subset of people, customers will think that they are fighting for them, without realising that the standing charge is a sensible way to pass on the fixed costs to consumers. Of course the group who constantly demand that others subsidise them will lap it up, because as usual, they want someone else to pay, rather than pay themselves. 

I thought before you accepted variable costs should be on the unit rate?  Or do you now think the SC is a sensible way to collect dynamic costs? Please clarify this one for me, thanks.

The people who pay higher rates of tax, and support per household (that disregard ability to pay and number of adults in household) costs such as SC, do those fall into the category of "They want someone else to pay, rather than pay themselves"? Not saying one is right over the other, just that both can be interpreted in the same way.

I dont think anyone is proposing SC is scrapped, but rather it resembles some form of common sense, some trivial changes would be to move policy costs to general taxation as after all they are political costs, and move variable costs to unit rate.