OFGEM announce lower standing charge tariff plan

Qyburn

More likely the other way round, low users still get the same connection, so fixed costs will be the same. Imagine if the costs of the UK networks had to be covered by users none of whom use more than 500kWh per year, but all of whom expect to be able to draw 10 or 15kW at the flick of a switch.  What sort of unit rate uplift would cover that?

molerat

wrf12345 said:

"Who do you think should subsjdise you, and why?"
High users who are overloading the grid and pushing up the unit price with excess demand, only fair way to do it. Ofgem's solution is a test of the energy secretary who likes to delve into the details, if they get away with it, will just be the beginning...

It is not "high users" that strain the grid but surge use which even the small users contribute to.  In a another post on this subject I posed that my property has never seen a use in excess of 4 kW, around 17 amps, so does not strain the grid nearly as much as the small flat with storage heaters that will often draw 15 kW, around 65 amps, putting a much larger strain on the grid which needs a lot of capacity to cover.  Your whole argument is based around someone else, apart from you, should pay rather than fairly sharing that cost.

EssexHebridean

For full transparency, I wasn't for a moment imagining that any such substantiation was going to be forthcoming...  

Qyburn

michaels said:

I suspect we might se:
Removal of VAT on domestic fuel 
A 5% per unit surcharge on the per unit cost to subsidise a reduction in standing charges

I really hope not, I don't think it's appropriate to use public money to subsidise a commodity, especially if the aim of the subsidy it to support this ill thought out campaign against standing charges.

(And an overall increase in VAT to 22.5% and a 2% cut in NI along with a 2% increase in income tax 'cost neutral to workers = no increase in taxes on working people')

That's a tax increase for everyone, "working people" pay VAT the same as everyone else.

Scot_39

wrf12345 said:

"Who do you think should subsjdise you, and why?"
High users who are overloading the grid and pushing up the unit price with excess demand, only fair way to do it. Ofgem's solution is a test of the energy secretary who likes to delve into the details, if they get away with it, will just be the beginning...

You did grasp the quota being challanged is the gas quota - and as more swap away from GCH - like just about every new build - commercial or domestic - theirs goingto be less demand for gas.

Potentially Fewer users - same network costs = higher gas bills.

And as of the Ofgem July 2024 standing charges - there was £0 for gas networks in the standing charge anyway.

See link to Ofgem SC review including the breakdown of SC

https://forums.moneysavingexpert.com/discussion/comment/81673596/#Comment_81673596

Of course since then more has been added in policicy costs and network charges in Apr 25 and in Oct 25 extra £51.

EssexHebridean

Qyburn said:

michaels said:

I suspect we might se:
Removal of VAT on domestic fuel 
A 5% per unit surcharge on the per unit cost to subsidise a reduction in standing charges

I really hope not, I don't think it's appropriate to use public money to subsidise a commodity, especially if the aim of the subsidy it to support this ill thought out campaign against standing charges.

(And an overall increase in VAT to 22.5% and a 2% cut in NI along with a 2% increase in income tax 'cost neutral to workers = no increase in taxes on working people')

That's a tax increase for everyone, "working people" pay VAT the same as everyone else.

And in real terms, potentially a far bigger tax increase as well, as I suspect the majority of folk pay more for other goods that are vatable across a year than they do for their energy bills. 

WiserMiser

michaels said:

(And an overall increase in VAT to 22.5% and a 2% cut in NI along with a 2% increase in income tax 'cost neutral to workers = no increase in taxes on working people')

In other words, 'Senior Bashing'.  🤨Seniors wouldn't benefit from any cut in NI because they don't pay it, but they'd certainly be hit by their VAT payments totalling 12.5% more than before.

Similarly, unless they are existing on very little more than the new state pension (or the old one + SERPS), they'd also be clobbered by the rise in income tax.