OFGEM - Winter 2025/2026 Standing Charge Plans

xflare

Energy regulator Ofgem has proposed that by winter 2025/26, all energy suppliers will be required to offer a low or zero standing charge Price Capped energy tariff.

UTILITA is the only supplier that currently offers a zero SC tariff, but with considerably higher unit rates - if you are a very light energy user possibly a good deal.

Do we think that if other suppliers bring in low or zero SC tariffs they will follow a similar tariff plan?

born_again

I think they will, but you may find that some set pricing at a point that no one will take it up.

Say Zero S/C & £2+ kWh. For fills the regulation in spirit.

Or how do they define low S/C?

MattMattMattUK

A customer of mine who is heavily involved in the energy sector was telling me there is an interesting approach to the unit rate issue. Rather than it being the first X units per day at a higher rate the reference period might be changed, so it is the first X units per month or per quarter that are charged at a higher rate and that unit rate would be well over a pound a unit, possibly much higher.

wrf12345

All wrong, the only way to do the zero s/c is to have it as the default tariff with the unit rate up by ten percent so that users up to the fabled average consumer will benefit. The competition for the high users would be so heavy that the various companies would then have to offer competitive alternative tariffs to them, if the consumer can't be bothered to find the best one that is up to them.

The context is the huge margin that electric retailers have, buying at 10p and selling at 25p - obviously before the overheads are taken into account - so it just takes determined government action, which we probably have. Everything else is nonsensical scare tactics.

GingerTim

wrf12345 said:

All wrong, the only way to do the zero s/c is to have it as the default tariff with the unit rate up by ten percent so that users up to the fabled average consumer will benefit. 

This is, as you know, never going to happen.

MattMattMattUK

wrf12345 said:

All wrong, the only way to do the zero s/c is to have it as the default tariff with the unit rate up by ten percent so that users up to the fabled average consumer will benefit. The competition for the high users would be so heavy that the various companies would then have to offer competitive alternative tariffs to them, if the consumer can't be bothered to find the best one that is up to them.

Yes, as usual your post is all wrong.

wrf12345 said:

The context is the huge margin that electric retailers have, buying at 10p and selling at 25p - obviously before the overheads are taken into account - so it just takes determined government action, which we probably have. Everything else is nonsensical scare tactics.

You continually dismiss the overheads and ignore the transmission costs in your delusional world where energy suppliers are all operating on huge margins rather than thin margins that are the reality. Unless you are willing to educate yourself with actual facts rather than made up rubbish then you will never understand what is actually happening and you will never be able to make any useful comments.

Qyburn

wrf12345 said:

The context is the huge margin that electric retailers have, buying at 10p and selling at 25p - 

Do you !!!!!! that supermarkets charge more for a loaf of bread, than the wholesale cost of flour?

superkoopauk

MattMattMattUK said:

A customer of mine who is heavily involved in the energy sector was telling me there is an interesting approach to the unit rate issue. Rather than it being the first X units per day at a higher rate the reference period might be changed, so it is the first X units per month or per quarter that are charged at a higher rate and that unit rate would be well over a pound a unit, possibly much higher.

I remember when Npower used to do it this way in 2007 but they charged people for more than X units at the higher rate and thus overcharged customers

https://forums.moneysavingexpert.com/discussion/822299/npower-gas-sculpting/p1

mmmmikey

Has there been any new / recent reporting on this or is this just a thread about the proposal that was presented some time back and we're waiting for a decision on?

MattMattMattUK

mmmmikey said:

Has there been any new / recent reporting on this or is this just a comment on the proposal that was presented some time back and we're waiting for a decision on?

Nothing official at the moment, Ofgem are currently trying to square the circle that is trying to make the tariff price cap compliant, but also raising the minimum revenue required to cover the costs currently covered by the standing charge. The suppliers are pushing back against the idea that they should be required to hand over the equivalent of the standing charge every month when the might be getting zero income from the customer for months at a time. The whole zero standing charge proposal was idiotic at best, it is an example of what goes wrong when governments choose to listen to stupid people making a lot of noise. 

mmmmikey

MattMattMattUK said:

mmmmikey said:

Has there been any new / recent reporting on this or is this just a comment on the proposal that was presented some time back and we're waiting for a decision on?

Nothing official at the moment, Ofgem are currently trying to square the circle that is trying to make the tariff price cap compliant, but also raising the minimum revenue required to cover the costs currently covered by the standing charge. The suppliers are pushing back against the idea that they should be required to hand over the equivalent of the standing charge every month when the might be getting zero income from the customer for months at a time. The whole zero standing charge proposal was idiotic at best, it is an example of what goes wrong when governments choose to listen to stupid people making a lot of noise. 

Thanks, thought maybe I'd missed something as I've had my ear defenders on in order to avoid listening to said stupid people making a lot of noise, which sadly has been deafening at times and damaged my hearing. Maybe I should go with the flow and demand compensation from someone?