Question: Standing Charge Abolish & Fixed Term Energy Contracts

Qyburn

https://forums.moneysavingexpert.com/discussion/comment/82184047#Comment_82184047

The local heating oil supplier charges per litre, with no standing charge.

Generally oil suppliers won't deliver less than 500L at a time, and most have lower rates for larger quantities. Of course they're not maintaining a pipeline to my house so that I can draw any quantity of oil at a moment's notice.

debitcardmayhem

https://forums.moneysavingexpert.com/discussion/comment/82184382#Comment_82184382

That will be good for electric prices when they factor in the cost of Sizewell C and take it out of SC, Milibands big deal

redux

I'd far prefer that they don't abolish standing charge, but instead introduce 2 or 3 options of high standing charge lower unit charge, and vice versa, then people could size up which suited them best.

And the decision might be different in summer and winter

Several years ago my supplier had options with 8, 16, 32 pence a day standing charge, and unit charges that sloped the other way

I worked out on the back of envelope that having the 8 pence daily and higher gas units option in summer and the 32 pence option with lower gas units in winter would save about £50 to £60 a year

I said so on here. MSE never noticed. So I'm unconvinced that the current moves are as brilliant as they could be.

NorfolkCanary

https://forums.moneysavingexpert.com/discussion/comment/82184294#Comment_82184294

So the payment differential increase will be greater going forward as unit prices for gas increases, but that's good?

Also how does this make charges or billing simpler? Thoretical calculus is not required to calculate monthly/yearly costs atm, is this really what this country is coming to, further dumbing down?

Swipe

Also how does this make charges or billing simpler?

And now there'll be a lack of transparency of the separate costs

tfhnota

Complete elimination of all s/c's and a single unit rate will make comparison between tariffs as simple as it can get and hopefully encourage the dreadful Ofgem to get rid of the average cost comparisons, or at least require the unit rate to be upfront rather than buried in menus.

jrawle

https://forums.moneysavingexpert.com/discussion/comment/82184949#Comment_82184949

As I understand it, that is still going to be the case. Standing charges are going to be abolished for the price cap tariff. Suppliers can offer other tariffs with whatever prices they like.

At the moment, I pay 16.55p per day gas standing charge as it is. There is no need to pay the price cap price, but people prefer to moan rather do things for themselves. Also, I don't actually care how high the standing charge is; I care about reducing the overall cost for my usage.

I preferred MSE when it was for savvy people looking to save a few quid, not trying to be a social justice campaigning site.

Swipe

As I understand it, that is still going to be the case. Standing charges are going to be abolished for the price cap tariff. Suppliers can offer other tariffs with whatever prices they like.

Now that would make much more sense. If that is the case, why didn't they simply explain that in their press release?

QrizB

If you're with Octopus, on your account home page you'll find a link to a short survey asking what you think about the standing charges announcement.

There's a "is this good yes/no" question and then a chance to explain why you think what you think.

The_artisan

So my sibling and I are currently selling my later mother's house as part of her estate. It is on the market, but not yet sold. I was going to see if I could change the current gas and electric contract to something cheaper but following the budget I am wondering if I should wait and see what happens with the removal of gas standing charge. The house is currently empty unless one of us needs to visit occasionally to sort something out. The thermostat is set at 15 degrees to comply with insurance requirements. So it is likely to be a lowish gas usage. It is a modern 4 bed detached house with reasonably good insulation ( I think it is a C for energy efficiency). I don't want to get tied into a contract with a gas standing charge at this point if it turns out that it would have been cheaper to wait till January for something with a 0 rate gas standing charge. Has anyone got any advice?