Standing Charge Proposed Changes

[Robf]

Not sure if I like the sound of this. If based on kW used it could mean increases in our costs for charging from home. One thing I am sure of is that changes of this type usually have the opposite effect to intended and expect companies to increase charges overall under the guise of savings for customers

Energy bills: Plans for new tariffs with no standing charge

Energy firms will be forced to offer the new tariffs under a proposed shake-up of bills by the regulator.

www.bbc.co.uk

 

[5teep]

Standing charges only exist because power companies prices were capped. They were allowed to raise prices by the back door, calling it a standing charge to get round the rules.
Sooner they are gone the sooner we know exactly what we are paying for.

 

[dsimpkins]

Article suggests that customers will be offered tariff options. One without a standing charge, and one with. The one without standing charge would suit low users of electricity as they are currently penalised by standing charges. For high users of electricity the traditional tariff with standing charge would be more suitable.

 

[Ferretusmaximus]

Standing Charge Free tariffs were available for years and only disappeared due to the price caps. It allowed you to choose depending on personal usage, e.g., for some users the standing charge is the major part of their bill so they can get a big gain from a usage-only tariff. The more choice the better - regulated tariffs are supposed to benefit customers not suppliers.

 

[Gomev]

We are low users other than for charging. The electricity standing charge for My Nov/Dec (1 month) bill was 65% of the bill peak usage, i.e. peak rate, and represented 30% of the entire bill. We are in an expensive standing charge area 66.26p / day
Difficult to know how this would go for time of day tariffs, would they apply the increased charge only to peak rate ? I don't know but would like to find out.

 

[siteguru]

I think there'd be different ToD tariffs offered - existing ones with the standing charge and other ones without but with different peak and off-peak rates.

 

[gazza487]

I have a horrible feeling it’ll be brought in under the guise of helping poorer but with a higher charge on every unit ergo it’ll be another way of fleecing people and it will be all for our own good in reducing energy usage.

Call me cynical but main beneficiaries will certainly be second home owners, those waiting between their tenants and those with enough dosh and land to pay to have solar and batteries galore.

At the moment there would be a choice but you can bet your bottom dollar, the companies will not lose a penny.

 

[Anon70]

These are some of the OFGEM pages relating to this. They had 5,000 responses to their consultation. As with all of the privatised industries the Government has made things super complicated.

Ofgem proposes introducing zero standing charge tariffs

Ofgem's announcement for improvements to standing charges and better support for households struggling with debt.

www.ofgem.gov.uk

Standing charges: domestic retail options

We are seeking views on the options to reduce household standing charges.

www.ofgem.gov.uk

Understand your electricity and gas bills

Costs included in your electricity and gas bills, includes standing charges and unit prices.

www.ofgem.gov.uk

 

[Gomev]

I have a horrible feeling it’ll be brought in under the guise of helping poorer but with a higher charge on every unit ergo it’ll be another way of fleecing people and it will be all for our own good in reducing energy usage.

Call me cynical but main beneficiaries will certainly be second home owners, those waiting between their tenants and those with enough dosh and land to pay to have solar and batteries galore.

At the moment there would be a choice but you can bet your bottom dollar, the companies will not lose a penny.

The idea isn't that the companies should lose money. The idea is that for users like me who only use 5kWh per day for household usage but also pay 66p per day standing charge. With no standing charge they could raise the kWh rate by up to 10p per unit and I would be better off. So a choice would be good for many. Of course I also charge off-peak which complicates my case, but not everyone has an EV or battery.

 

[salty]

Whatever there reason, there's definitely a method in why they are doing it. And you can guarantee they will make more money. Companies will make more, therefore the Government will get more tax off the companies. Simple really. You don't think for one second they are doing it for us.

 

[5teep]

Whatever there reason, there's definitely a method in why they are doing it. And you can guarantee they will make more money. Companies will make more, therefore the Government will get more tax off the companies. Simple really. You don't think for one second they are doing it for us.

A year or two down the road they'll reintroduce standing charges but not drop the price per kWh?

 

[siteguru]

If they did that then I think the populace may turn very French.

 

[salty]

If they did that then I think the populace may turn very French.

Doubt it, we'll just take it. We always do.
Besides not much we can do.
The Government, Insurance companies,
Energy suppliers, etc etc. Have been bending us over for years. But lately it's getting worse. Everybody's having a go.

 

[siteguru]

I think sometimes that we could do with a bit of mass civil unrest* in this country, just to remind the powers that be that there's only so much crap we'll endure.

* peaceful not riotous.

 

[salty]

I think sometimes that we could do with a bit of mass civil unrest* in this country, just to remind the powers that be that there's only so much crap we'll endure.

* peaceful not riotous.

Agree to a certain extent. Trouble is though, it would just be a free pass for arseholes to riot and loot. Tossers who don't pay for owt in this country anyway.

 

[Gomev]

Whatever there reason, there's definitely a method in why they are doing it. And you can guarantee they will make more money. Companies will make more, therefore the Government will get more tax off the companies. Simple really. You don't think for one second they are doing it for us.

A year or two down the road they'll reintroduce standing charges but not drop the price per kWh?

I'm not sure where you are getting these ideas from. The 'Companies' are not the one's wanting to introduce this. It is part of a long campaign by Martin Lewis (MoneySavingsExpert) and proposals put forward by Ofgem. They are not getting rid of standing charges, the proposal is to give you a choice. If you are a high user then stick with your charges.

https://www.moneysavingexpert.com/news/2024/12/zero-standing-charges-energy-tariff-proposals/

 

[salty]

I'm not sure where you are getting these ideas from. The 'Companies' are not the one's wanting to introduce this. It is part of a long campaign by Martin Lewis (MoneySavingsExpert) and proposals put forward by Ofgem. They are not getting rid of standing charges, the proposal is to give you a choice. If you are a high user then stick with your charges.

https://www.moneysavingexpert.com/news/2024/12/zero-standing-charges-energy-tariff-proposals/

We'll see.

 

[Gomev]

We'll see.

I really don't understand your scepticism. I thought most on here being EV owners were slightly more resistant to FUD and conspiracy theories than most.

 

[salty]

Yep, I'm sceptical. I've lived in this Country all me life. So as far as I'm concerned, that's enough.