MSE News: E.on and EDF launch limited trials of 'low Standing Charge' tariffs

Scot_39

But at those mimimums - its likely to leave suppliers short on recovery of fixed costs.

666 for instance is around 37% of the "worth it threshold quoted in the MSE articles - of 1800 kWh for electric SR at any rate.

And the figure if compare Octopus standard and low SC 1 year fixes.

So in theory will leave them short of 63% of the £65 discount on electric SC - or around £41 - which is not that far off their total EBIT allowance on capped tariffs.

If the gas number is similar - 63% of £150 = £94.50 - more than twice EBIT allowance.

Anyone who thinks suppliers are going to be able to "eat" that sort of shortfall - given all their other issues - like debt - is I suspect going to be disappointed.

And in the end - it seems inevitable - others will end up cross subsidising such low users on their bills.

MWT

https://forums.moneysavingexpert.com/discussion/comment/82063039#Comment_82063039

Yes and that's what makes it a stitch up - unless you are using very low
amounts, there's not much saving to be made. But you're also right in
that it was plainly obvious that's how it would end up working
especially right now.

Surely the only possible justification for the tariff existing at all is to serve those with very low usage, it was never intended to be a viable route for those with more typical usage patterns…

MWT

https://forums.moneysavingexpert.com/discussion/comment/82063054#Comment_82063054

That seems entirely reasonable, this is not aimed at 2nd homes, holiday lets or those wanting to keep a gas meter around with zero use 'just in case' or just for a gas hob perhaps…

Qyburn

https://forums.moneysavingexpert.com/discussion/comment/82063304#Comment_82063304

And in the end - it seems inevitable - others will end up cross subsidising such low users on their bills.

It's inevitable with any incarnation of low (or zero) SC. The whole point is to allow some users to pay less for their electricity. Those campaigning vociferously on here are doing so because they hope their own costs will reduce.

This can only happen if others then pay more.

TroubledTarts

https://forums.moneysavingexpert.com/discussion/comment/82062800#Comment_82062800

You fail to realise this was always meant to benefit low energy users not everyone. If you have calculated you would be worse off that means you are not the household this was designed to give benefit to.

Whether or not you look to curtail your usage to make this of benefit to your household is your decision.

Scot_39

https://forums.moneysavingexpert.com/discussion/comment/82063039#Comment_82063039

As soon as it was made clear this was just a "shuffling of the deckchairs on the titanic" exercise as made clear when Ofgem 1st proposal said without any external funding they had no option just to move costs not end them, the whole exercise should have stopped.

Many poverty charities reacted negatively, many then also sensibly refocussed on other routes.

Scot_39

https://forums.moneysavingexpert.com/discussion/comment/82063497#Comment_82063497

You fail to realise this was always meant to benefit low energy users

yet it does no such thing.

it allows dual fuel households to benefit at upto 9300 kWh energy (1800 E + 7500 G) use by upto twice tfe amount at edf, more than twice the amount at Octopus (£150vs £75/£65) and at a far lower on profile class 2 all electric 2200kWh total use.

So 7100kWh more energy margin to save a fraction of twice the amount.

And in a UK energy cost environment where electric (and now taxes) riddled with renewables costs - where is the link - with a new policy effectively rewarding those still burning upto 7500kWh of gas.

When donestic gas generstes a far higher share - 2/3rds more - c16% and growing vs c10 % and falling - of uk emissions than electricity generation.

And why is it £65/75 max off of £220 ave electric SC - (34% max) but double the percantage as £75/85 of the c£110 ave gas SC (68% min) as the max savings.

FreeBear

Based on my current annual consumption figures (1800kWh electricity, 3200kWh gas), the Octopus low SC tariff saves me about £90 against the SVR, and £48 on the current 12 month fix. If I switch from my current fixed (Nov.2025 v2), it would cost me an extra £48.

So, not going to switch this side of Christmas - I'll crunch the numbers again later in the year to see if the Low SC tariff will save anything (should it still be available). Based on current consumption and listed tariffs, it looks like a possibility.

BigBlueSky

Already with EDF FreePhase Dynamic. How do I get the discounted standing charge as part of this?

Is it only available on the new FreePhase Static tariff ?

SJMALBA

https://forums.moneysavingexpert.com/discussion/comment/82068068#Comment_82068068

It's available with FreePhase Dynamic - which version are you on, original or v2?