Standing Charges: Gas & Electricity

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  • mmmmikey
    mmmmikey Posts: 2,196 Forumite
    Part of the Furniture 1,000 Posts Homepage Hero Name Dropper
    GingerTim said:
    Dewpoint said:
    I'm a pensioner living in a well-insulated flat and I try to minimise my impact on the environment by using as little water, electricity, and gas as I can.

    My actual usage for all these is low, but the bills I pay don't reflect this because the standing charges for G & E represent between 30% and 50% of the total.

    It seems to me I'm subsidising those who are not as careful. They pay the same standing charges as me, but it represents a far smaller proportion of the Bill.

    Not fair in my opinion. I think standing charges should be scrapped, and those who use the most should pay the most in direct proportion.

    Well said sir, totally agree. ;)
    Why do you keep selecting factually incorrect, emotional and hyperbolic posts and saying "Well said"?
    Obviously just on a wind up. Best ignored.

    Yes sir, I'm with you on that, well said :smile::smile::smile:
  • teaselMay
    teaselMay Posts: 580 Forumite
    500 Posts Name Dropper
    edited 22 April at 11:06AM
    My standing charge over the year is half of the total electricity and gas costs. But surely it costs the same to supply me as it does my neighbour who uses 6 times as much gas and 8 times as much electricity as I do, and so I should pay the same for that component. Interestingly he somehow gets some knocked off his bill by keep using the phrase "i'm terminal" for hte past 8 years or so!
  • Scot_39
    Scot_39 Posts: 3,143 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    edited 22 April at 11:40AM
    We pay for network costs via standing charges and unit rates.

    We all need as a minimum one cable or pipe for gas if on gas.

    But 10 users using 1 kW - will need less cable / grid capacity than 10 users using 5 or 10 kW.

    The grid is capacity limited in several key areas - part why spending billions on new HVDC links Scotland to England - and why we pay renewables money to shutdown rather than overloading the cables - so called  thermal constraint payments - ESO forecast to peak at £3bn pa by 2030.

    In the same way you might plug all your tv kit into one say 4 way 13A extension lead - but wouldn't ever I hope plug 2 let alone 4 say 2kW fires into one.  As that would overload the extension and the socket feeding it - with real risks of damage even house fire.

    So it's not a simple split  of costs and Ofgem justification for current split - fixed so via standing charge vs capacity so unit rate based - is available on line to read.

    So your neighbour is paying more - for the infrastructure that supplies him.

    As of last years SC consultation just over half the cap TDCV network costs - now around £380+ vat as Apr 1st cap - were deemed fixed and allocated to standing charges.

    [The same Ofgem consultation report gives the other major components of our gas and electric SCs.]

    The rest to unit rates.

    Higher users therefore do in general pay more than low users.


  • bob2302
    bob2302 Posts: 526 Forumite
    500 Posts Second Anniversary Name Dropper
    teaselMay said:
    My standing charge over the year is half of the total electricity and gas costs. But surely it costs the same to supply me as it does my neighbour who uses 6 times as much gas and 8 times as much electricity as I do, and so I should pay the same for that component.
    The cost of the last leg of the connection and the metering is a fixed cost, but the rest of infrastructure costs scale in some way with usage. 
  • Auti
    Auti Posts: 508 Forumite
    Third Anniversary 100 Posts Homepage Hero Name Dropper
    If you have energy and water from respective infrastructure it is only right that you pay for the privilege. As everyone who is connected has the same privilege it is correct the contribution is equal for everyone. 

    I have a limited income and watch my use by budgeting so that I save in the summer to go towards winter use and by trying to use resources efficiently in an old and draughty house. 

    This is just my view and no disrespect to anyone.
  • wrf12345
    wrf12345 Posts: 820 Forumite
    Sixth Anniversary 500 Posts
    From this logic, high users who are causing the expensive grid upgrade need to pay more because if they did not exist there would be no need to upgrade the grid. The best thing would be s/c's at zero, the first couple of kw/day at half price, then the normal price up to say 10kw/day and above that say double the price. This would force Greenness and lower use into the system. Those with health problems that need constant electric use are already covered by the welfare system, which could possibly be increased a touch to help them out.
  • debitcardmayhem
    debitcardmayhem Posts: 12,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    wrf12345 said:
    From this logic, high users who are causing the expensive grid upgrade need to pay more because if they did not exist there would be no need to upgrade the grid. The best thing would be s/c's at zero, the first couple of kw/day at half price, then the normal price up to say 10kw/day and above that say double the price. This would force Greenness and lower use into the system. Those with health problems that need constant electric use are already covered by the welfare system, which could possibly be increased a touch to help them out.
    Flawed logic again, the welfare state doesn’t help us, we are too “rich”. Perhaps if you get your wish you will send us the few pennies you save. 
    Still, money doesn’t cure the incurable nor would state handouts.
    You are getting tiresome banging on about SC at every turn, why not go off grid.
    4.8kWp 12x400W Longhi 9.6 kWh battery Giv-hy 5.0 Inverter, WSW facing Essex . Aint no sunshine ☀️ Octopus gas fixed dec 24 @ 5.74 + Octopus Intelligent Flux leccy
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