gas & electric April 1st Price Reductions

stevendpar · 6 April at 12:47PM

The government decided that on 1st April gas and electric bills would be reduced so that on average a household would save £150pa. I understood this was to shift liability for green levies from individuals to central government.

I assumed that these levies were included in the standing charges on our energy bills and that we would therefore see a reduction in the daily rate of standing charges on our tariff.

However I have just checked my tariff on the British Gas app and there is no reduction in the rate of standing charge, while there is a reduction in the kwh price for both gas and electricity.

I think this is wrong and that the reduction should be in the standing charges and that BG need to address the issue.

Am I right?

born_again · 6 April at 12:52PM

Not the 1st thread on the subject.

Some SC have gone up, other down. Read link below & find your region.

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

Also Gas is not effected by the reduction.

Ayr_Rage · 6 April at 12:54PM

No, you assumed incorrectly.

TroubledTarts · 6 April at 1:02PM

So when does this reduction end is it just for 3 months or longer?

MattMattMattUK · 6 April at 1:18PM

The green levies that were moved to general taxation (and so paid for by those of us who are net taxpayers) were on the unit rates, so those who use more paid more. They have been removed from where they were applied to, the unit rate.

Ildhund · 6 April at 1:25PM

In a word, No! The charges that have been removed from electricity accounts were levied per kWh on the unit rate, so standing charges remain the same.

Ofgem have over the years shuffled some bits of these government levies between unit rates and standing charges for price-capped tariffs (i.e. each supplier's Standard Variable Tariff). The last one that was calculated per household (the Warm Home Discount charge) is now being moved to the unit rate.