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QrizB

What are the "standing charges" are there for?

They represent some of the fixed costs associated with supplying you with energy. Plus they're used by the Government as a sneaky extension to the welfare budget, so they include money to pay benefits to low-income households and pensioners.

There's a fairly easy to read explanation here:

https://www.ukelectricityprices.co.uk/standing-charge

AlvyLad

https://forums.moneysavingexpert.com/discussion/comment/82025118#Comment_82025118

I'll rephrase it: "since a scam of administration costs called Standing Charges isn't enough profitable rip-off, let's justify another one called "supplier tariff Exit-fee" nobody is going to complaint about it"

QrizB

> since a scam of administration costs called Standing Charges isn't enough profitable rip-off

You seem to think that the supplier somehow benefits from the standing charges.

The supplier does not keep the standing charges. They pay them over to other organisations. The list of things that the SC pay for at that link is evidence of this.

> let's justify another one called "supplier tariff Exit-fee"

If you don't exit your tariff early, the supplier doesn't receive the exit fee. So that's not a rip-off either.

AlvyLad

https://forums.moneysavingexpert.com/discussion/comment/82025159#Comment_82025159

Don't believe, you are understanding fundamental issue I am questioning here, justifying unfair pricing- scaming IRL. Lets try again.

If the network and energy producers charge x-amount for the wholesale and maintenance of another x-amount, any additional charges on the top (by "almighty "suppliers"") is profit (scam if worded any other way)

Surely simple enough issue to confront them "suppliers" with? in my personal circumstances, all I can do is to change them to ones, that don't have that "rule-condition-tariff" in place, but OFGEM seems to be "sitting on their hands" allowing it

MWT

https://forums.moneysavingexpert.com/discussion/comment/82025183#Comment_82025183

I suspect you are not going to accept any explanation that doesn't fit your narrative, but I don't think you understand how the energy supply market works…

The suppliers hedge their future need for energy to supply to their fixed tariff customers by paying for it long in advance, when a customer switches away from them they are left holding energy that they have already paid for that is no longer going to be sold to that departed customer at an agreed price.

The exit fee helps to mitigate that problem both by discouraging people from leaving and by compensating for the missing consumption.

It is not an automatic profit, it is mostly a loss reduction.

… and it would be a pretty poor source of profit anyway as it is only paid by those who leave.

QrizB

Don't believe, you are understanding fundamental issue I am questioning here

Oh, but I do.

If the network and energy producers charge x-amount for the wholesale and maintenance of another x-amount, any additional charges on the top (by "almighty "suppliers"") is profit

And energy suppliers' profits are in the low single-digit %. Around 2% on the Ofgem cap, for example, which is £36 a year for a typical household with an £1800 energy bill.

If you hang around on this forum for a while you'll find his gets discussed quite regularly.

AlvyLad

https://forums.moneysavingexpert.com/discussion/comment/82025283#Comment_82025283

I'm not going to be going in circles or teaching as how, who should be making profits.

As an end customer, I pay for the certain tariff- charges, that are clearly displayed for being x- for x energy + x- for network, maintenance, management (certain markup) off

regardless of how, they are making it to be what for- it is none of my concern, if anything, my concern is lack of bin-collectors, not beez-kneez-boys and gals, that making everyone look thick in whatever way like, they word it out to and be justified to do so.

AlvyLad

https://forums.moneysavingexpert.com/discussion/comment/82025286#Comment_82025286

as little of the profits, they make, they do, if not, they should go bust- NONE of my concerns. Thinking of which, the ones that go out of business, should not get paid wages for whatever "work" they do.

My issue- complaint is purely from customer perspective, when (be it their "business-investment" planning, operating profit-loss),

I, as customer, am NOT their business partner, I don't get wages, profit share

I am offended by "Entrapment" and "Scam" for what I'm legally obligated to pay.

QrizB

I am offended by "Entrapment" and "Scam" for what I'm legally obligated to pay.

It's not entrapment and its not a scam.

AlvyLad

https://forums.moneysavingexpert.com/discussion/comment/82025313#Comment_82025313

except it is