Standing Charges on utilities, Is it possible to rid of

always_learning22

I’ve been looking into energy bills recently and I’m struggling to understand the justification for standing charges . it feels like you’re paying a fixed fee regardless of how little energy you use, which doesn’t sit right, especially when trying to cut costs. I’ve seen there’s talk of new tariffs or consultations where standing charges could be reduced or removed but with higher unit rates instead, and I’m curious how people feel about that trade-off. Do others see standing charges as fair, or does it feel like a poor deal, particularly for low usage households?

TroubledTarts

We all have to chip in equally to have the wonderful facility of having power/fuel delivered right to our doorstep. Just because someone may use less the open tap is there for them. That's the simple answer.

I don't agree with how it is all made up and past mismanagement but that's another story.

always_learning22

I understand why standing charges exist, but it feels like they’ve increasingly been used to push bills up regardless of actual usage, especially over the past few years. It’s hard not to see it as being exploited, particularly for lower-use households who end up paying a significant fixed cost anyway. I think there’s definitely a place for a standing charge, but it needs tighter regulation so it reflects genuine costs rather than becoming a way to inflate bills.

TroubledTarts

Join Octopus the £5 weekly large latte with coconut milk and sugar free hazelnut pump free coffee from Cafe Nero more than pays our standing charge for the week.

£260 free a year

Takes the stress out of worrying about standing charges

always_learning22

The thing is, it’s not just one standing charge it’s across everything. Water, electricity, heating they all have their own fixed charges, and when you add it up it might not seem huge individually, but together it’s easily £30–£40 a month. That’s what makes it frustrating, because you’re paying a significant amount regardless of how much you actually use.

More like £360 -£480 ontop of the bills, it does add up

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81961535#Comment_81961535

Would you prefer a higher tariff per unit instead, perhaps a band where the first X number of units are more expensive than units over a certain level?

Ultimately the network providing you power/water etc. has to be maintained so that it will provide power/water when you want it. Try not to look at the standing charge, just see the total value of the bill.

always_learning22

so either way you can’t really escape it, perhaps legislation will keep it on a leash

badmemory

Unfortunately when these companies were sold off the buyers asset stripped & left them in serious debt. They did next to no maintenance & it is now coming home to roost. Someone has to pay & that someone is us.

always_learning22

https://forums.moneysavingexpert.com/discussion/comment/81961592#Comment_81961592

that how i feel right, we are paying for the mess up of greedy private companies, Really Utilities should be covered by our taxes. but that’s in another reality

QrizB

https://forums.moneysavingexpert.com/discussion/comment/81961578#Comment_81961578

You can escape by having the services disconnected and going off-grid.

However, before doing that you'd better work out what it will cost to run everything yourself. You might decide the standing charges aren't that much after all.

always_learning22

https://forums.moneysavingexpert.com/discussion/comment/81961619#Comment_81961619

sounds like a challenge but i’m sure they are many energy efficient houses that could well with some not all the utilities off grid.