New electricity tariffs

Sheeppenguin

Today (1 April) my energy tariffs changed, which, according to the chancellor, will save me money. I use as little electricity as possible, and am on a prepayment smart meter with British Gas. In March 2026 I used 167.3kWh. The tariff was 25.72p/kWh, standing charge 48.25p/day. My new charges are 24.18p/kWh, 53.94p/day. Calculating March's usage at the new rates will indeed save me money - a whopping 80p or 2.6 pence per day - so the chancellor has not misled us. However, for low energy users such as myself the standing charges mean that we are unable to make meaningful savings no matter how much we limit our usage.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/6662163/new-electricity-tariffs

The government change was specifically it that it would save the "average user", around £150 a year*, this is what it does, nothing more, nothing less.

You are not meant to make "meaningful savings", you are meant to use the energy you need and that will be reflected in your bills. The standing charge covers the cost of your grid connection, maintaining the grid, the transformers, keeping the cables under the roads maintained and replaced as needed etc. That is apportioned equally across all properties in a region as that does not materially change by usage. The cost if supplying the kWh of energy is priced according to the cost of supplying that, so it scales based on what you use.

la531983

£150 a year, btw ^^^

MACKEM99

would you rather use twice as much and save 5.2p per day?

QrizB

In March 2026 I used 167.3kWh.

March is 31 days so that's 5.4kWh a day. If you use that amount every day for a year you'll use almost 2000kWh.

For comparison the Ofgem "low" TDCV which is meant to reflect the lower quartile of profile class1 users is 1800kWh/yr. So, you're roughly on the 25% mark; lower than the 2700kWh/yr average, but still using more than a quarter of customers.

(If you have a profile class 2 meter, intended for E7 or similar, the "low" TDCV is 2200kWh/yr so you're still only a little below that.)

… unable to make meaningful savings …

If you're using 5.4kWh/day, your daily bill is £1.31 for electricity used and 54p/day for standing charges. 70% of your bill is for electricity used, 30% is standing charges.

Scot_39

https://forums.moneysavingexpert.com/discussion/6662163/new-electricity-tariffs

The £150 was only c£133 at MSE original kWh rates and less if use the slightly lower Q2 rates now in force in Annex 4 iirc.

And was only 1 of the changes impacting variable tariffs today - which included £66 ex vat on network costs across both fuels and £17 ex vat on CMS - electric capacity market scheme - in wholesale costs.

Wiping out c£87 inc vat of that c£130.

And that budget £130, the full average £154 treasury figure across c29m households - has now been added to the collective tax pool. So reflected directly in future tax hikes for many and business costs that indirectly impact cost of everything - goods and services - we buy.

Scot_39

And re your unit vs standing charges, the £130 came off of unit rates, a component of electrics share of the £66 ex vat on networks includes an electric component that in past certainly reasonable to assume might be at least in part also directly added to the standing charge for electric.

But whilst the average regional prepay single rate SC has increased from 54.75p to 57.21 so 2.46p increase the regional variations are large, some negative like -4.5p in N Scotland, some positive inc +6.58p in Southern Scotland.

So the net impact of both those changed probably makes the SC seem even higher for low users.

EssexHebridean

We all - the regional variations aside - pay the standing charge. I'm struggling to see why anyone would expect that someone who uses less energy - and so pays less out for it each month - would see a greater saving against fixed policy costs that have been removed from the bill, than someone who uses more energy - and so pays less out for it each month.

If you are a below-average user, then it's safe to assume that in the same way the annual cost for an "average user" will not apply to you, neither will a specific level of savings also deemed to be for an "average user". You are not the "Average user" to which they are referring.

FWIW - I use pretty much spot on the same amount of electricity as you do. I'll cheerfully take the saving. I also by no means consider myself to be a low user.

Reed_Richards

I'm with Eon Next. My daily standing charge has gone up by about the same amount as my unit rates have gone down so if I use more than 1 kWh per day I will be better off. It seems I am relatively fortunate.

Scot_39

https://forums.moneysavingexpert.com/discussion/comment/81945688#Comment_81945688

As a low user it was never going to be £150 - even at median df tdcv cap - around just over £130 split iirc c£90 on electric so 25p per day.

And the OP is saving less than half the unit rate -c1.54p vs the mse 3.54p

Looking at new rate the OP may be in Eastern - from

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/get-energy-price-cap-standing-charges-and-unit-rates-region/

Region Eastern	Daily standing charge January to March 2026 49.33 pence per day	Daily standing charge April to June 2026 53.95 pence per day	Unit rate January to March 2026 27.03 pence per kWH	Unit rate April to June 2026 24.18 pence per kWH

But is using g a lower 25.72p above in figures.

25.72,x1.05 = 27.03p matches Ofgem table for eastern as well

48.25 though + vat = 50.06p doesnt match that table.49.33 would be 46.98p

I suspect the OP maybe missing out vat on old figures - so saving more than thinks.

But not sure which region as old sc rates dont seem to fit cap rates.

dunstonh

https://forums.moneysavingexpert.com/discussion/6662163/new-electricity-tariffs

Be happy yours is going down. For some of us on economy 7, its going up.