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Why are Octopus increasing their standing charge by almost 10%?

13

Comments

  • Jemma01
    Jemma01 Posts: 635 Forumite
    Fifth Anniversary 500 Posts Photogenic Name Dropper
    edited 30 March at 8:51AM

    My standing charge remains the same, though I really would love to participate in the lower sc trial ofgm was on about last month. I hardly use gas, I pay more standing charge than unit!!

    I'm FTB, not an expert, all my comments are from personal experience and not a professional advice.
    Mortgage debt start date = 11/2024 = 175k (5.19% interest rate, 20 year term)
    • Q4/2024 = 139.3k (5.19% -> 4.94%)
    • **/2025  = 44k       (4.94% -> 3.94%)
    • Q1/2026 = PAID    (3.94%)
  • Jemma01
    Jemma01 Posts: 635 Forumite
    Fifth Anniversary 500 Posts Photogenic Name Dropper

    i'm certain that if it would save me any money, I wouldn't be eligible 😆

    I'm FTB, not an expert, all my comments are from personal experience and not a professional advice.
    Mortgage debt start date = 11/2024 = 175k (5.19% interest rate, 20 year term)
    • Q4/2024 = 139.3k (5.19% -> 4.94%)
    • **/2025  = 44k       (4.94% -> 3.94%)
    • Q1/2026 = PAID    (3.94%)
  • Chrysalis
    Chrysalis Posts: 4,864 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper

    It is an interesting requirement, although I expect its designed to expel empty second homes from the tariffs.
    EON's requirement highlights that people with dumb smart meter's need a higher level of urgency as they get locked out of various options.

  • bristolleedsfan
    bristolleedsfan Posts: 12,939 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    I use hardly any gas would not qualify for EDF criteria - taken from link posted earlier.

    EDF

    You must use at least:
    - 666 kWh of electricity a year and;
    - 2,836 kWh of gas a year

  • silverwhistle
    silverwhistle Posts: 4,168 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    Similar issue here: 2100 kWh of gas in 2025 but my solution will be to install an A2A heat pump which will be cheaper than a A2W wet system using radiators.

  • Spoonie_Turtle
    Spoonie_Turtle Posts: 10,998 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    edited 31 March at 1:12AM

    Which presumably will reduce your gas standing charge to 0 with the supply capped, and you can't get much lower than that!

  • Jemma01
    Jemma01 Posts: 635 Forumite
    Fifth Anniversary 500 Posts Photogenic Name Dropper

    well I asked Octopus and this is what they said……

    "At the moment, we don’t have the option to directly enrol customers into this trial from our side. However, I recommend keeping an eye on any communications from Ofgem or your supplier about eligibility and how to participate"

    I'm FTB, not an expert, all my comments are from personal experience and not a professional advice.
    Mortgage debt start date = 11/2024 = 175k (5.19% interest rate, 20 year term)
    • Q4/2024 = 139.3k (5.19% -> 4.94%)
    • **/2025  = 44k       (4.94% -> 3.94%)
    • Q1/2026 = PAID    (3.94%)
  • tfhnota
    tfhnota Posts: 138 Forumite
    100 Posts

    Octopus have said summer start and will have minimum usage as well but not defined yet. With the current mess of oil shortages highly unlikely to be a good deal on the unit rate front. Have the other companies published their unit rates and minimum usage for the low s/c tariffs yet? Totally anti-green and no incentive to go for things like plug-in solar. Government has said may be some help in the autumn but only for households with low total income - they do not have the intelligence to enforce a zero s/c tariff for low income households and then make up the difference if usage is below a certain limit, which would be Green and nicely targeted, as the lower income households tend to cut right back on energy usage. Presumably they will have finally updated the tax database so they can actually see household income, which the energy company could then "ping" for confirmation when someone applies for such a tariff, or whatever variation they come up with.

  • MattMattMattUK
    MattMattMattUK Posts: 12,651 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 1 April at 10:53AM

    The standing charge is not "anti-green", it is a rational, sensible charge reflecting the base cost of maintaining the grid and the connection to the premises, with the unit rate reflecting the cost of the energy itself.

    What you are proposing in having a low/zero standing charge tariff for low income households is just arguing for subsidy/social tariffs which are never a good idea, if those on benefits cannot afford their bills then the method already in place, benefits, should be used to cover that cost. That is however why Universal Credit is rising 6.2% on 6th April.

    If you want to be "green" then we need full ToU tariffs with variable pricing based on generation costs.

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