Plans for all major energy suppliers to offer at least one low Standing Charge tariff from Jan 2026

Bendo

I wonder how much the cost of the consultation and implementation will add onto the standing charges.

Scot_39

The_Green_Hornet said:

Personally, I would like the standing charge to revert back to it's original purpose which was to cover the fixed costs of supplying energy to the customer but when the government can use it as an additional tax / benefits system (albeit a regressive one) while being shielded by Ofgem and the energy companies I can't see them doing so.

I suspect the next big increase will be when they bow to lobbying and introduce a social tariff.

In the Ofgem SC consultations they gave a breakdown of the SC - there was only around £11 per fuel from the policy line - for both fuels - iirc July 2024 figures.

I requoted the table recently here - with a link to my post with the link to the Ofgem report.

From

https://consult.ofgem.gov.uk/energy-supply/standing-charges-domestic-retail-options/supporting_documents/standing_charges_domestic_retail_options.pdf

See stacked bar chart or table under 2.1 - but summarising that table

Item                                   Electricity SC                Gas SC
Operating                          £62                                  £84
Network                             £121                                £0
Policy                                 £11                                  £11
Others                                £26                                 £20

But £22 out of £188 iirc at the time - seemed to suggest much more was in unit rates than standing charges.

Of course the policy line is up again - since - so it may be higher now. 

WHD is essentially a social tariff by another means.  It pays c half the current average level of dual fuel standing charges.

And if IIRC the original WHD scheme was meant to end 2026 - whilst a new solution found - not sure if that was after this winter or next - or when extended to 2.7m - that meant they decided to stick with the WHD.

You might want to look at the electric network costs line in that breakdown - Fixed Network (not total network) £121 vs Policy £11 - and then think about the net zero policies that are driving it - before you blame the social policy for our high standing charges.

All those balancing and curtailment payments, all those new HVDC links and pylons / cables - need to be paid for.  

That £121 - after £103 of fixed network costs moved from unit to SC after the TCR ( Again from above Ofgem report "The TCR sought to ensure that all consumers make a fair contribution to the costs of the networks")

powerful_Rogue

Too many people wanting their cake and eating it. They want electric/gas available 24/7 at the flip of a switch, but don't want to contribute towards the infrastructure. Someone else can pay for that.

I should be in favour of having the SC abolished as I have solar and batteries, but i'm not.

For £5.22 a week, I can flick a switch and a light comes on. I can turn on the hot tap and have hot running water. A lot of people pay that for a coffee or a pint. I believe we're very fortunate to have the infrastucture to do that for what I think is a very reasonable price.

Remember, there is nothing to stop you going off grid and having your meters removed.

Qyburn

PE556677 said:

Strikes me that the obvious answer is to include some free energy within the standing charge. Helps us low users, doesn't impact vulnerable high energy users and is no advantage to second home owners. 

Why don't you think that would help second homes?  It would subsidise people with solar panels as well.

Chrysalis

powerful_Rogue said:

Too many people wanting their cake and eating it. They want electric/gas available 24/7 at the flip of a switch, but don't want to contribute towards the infrastructure. Someone else can pay for that.

I should be in favour of having the SC abolished as I have solar and batteries, but i'm not.

For £5.22 a week, I can flick a switch and a light comes on. I can turn on the hot tap and have hot running water. A lot of people pay that for a coffee or a pint. I believe we're very fortunate to have the infrastucture to do that for what I think is a very reasonable price.

Remember, there is nothing to stop you going off grid and having your meters removed.

To be fair £5 is a lot for SC, and a lot of money for some people as well.  What other utility is £20 plus a month whilst having no inclusive usage?

When you consider the state of the grid, state of metering, state of the suppliers, that we have some of the highest prices in the world for energy, I think its understandable where people wonder where all the money from these high standing charges have gone.

Not all of the SC goes to the infrastructure.

pseudodox

Chrysalis said:

powerful_Rogue said:

Too many people wanting their cake and eating it. They want electric/gas available 24/7 at the flip of a switch, but don't want to contribute towards the infrastructure. Someone else can pay for that.

I should be in favour of having the SC abolished as I have solar and batteries, but i'm not.

For £5.22 a week, I can flick a switch and a light comes on. I can turn on the hot tap and have hot running water. A lot of people pay that for a coffee or a pint. I believe we're very fortunate to have the infrastucture to do that for what I think is a very reasonable price.

Remember, there is nothing to stop you going off grid and having your meters removed.

To be fair £5 is a lot for SC, and a lot of money for some people as well.  What other utility is £20 plus a month whilst having no inclusive usage?

When you consider the state of the grid, state of metering, state of the suppliers, that we have some of the highest prices in the world for energy, I think its understandable where people wonder where all the money from these high standing charges have gone.

Not all of the SC goes to the infrastructure.

My modest elderly car (which I cannot afford to replace) costs me £22 per month VED.  On top of that I have to have insurance - another £16 per month.  Plus it needs an annual MOT which equates to almost £5 per month.  So over £40 per month even if I don't put in petrol and drive anywhere or have to pay out for any repairs, tyres etc.  But just as I value having water, light and heat at the flick of a switch I value having transport available 24/7, living in an area where there is limited local bus service within 2 miles of home. It gives me independence & allows me to visit elderly relatives and friends who live some distance away.  Today I made a rare visit to a cafe with friends.  A coffee cost me almost £4.  That is what I regard as "a lot of money".