Woodstock My comment about standing charges was intended as a flippant throw away but having since received revised tariffs for April 1st onwards from my electricity and gas providers it turns out I was not far off the mark! I am of average intelligence and when Ofgem announced a price cap rise of 54% that is what I was expecting. It turns out that the truth is somewhat more subtle. The 54% headline figure is the expected increase in the overall bill for a dual fuel user consuming average amounts of gas and electricity. On diving into the figures it turns out that the breakdown of actual price cap increases is as follows:-
Gas unit price per kWh 81%
Gas standing charge 4.2%
Electricity unit price per kWh 36.3%
Electricity standing charge 82%
Can anyone explain why an increase in the wholesale price of gas should cause such a huge rise in the electricity standing charge cap?
As an aside I think the gas companies are going to be inundated with queries from customers who had steeled themselves for a 54% increase in their bills only to find that the actual increase is going to be around 80%!!!!!
Conversely if people are expecting their electricity bills to go up by 54%, the lower 36.3% increase in unit cost will mask the 82% rise in standing charge so they may not notice. Unless, of course, you have solar PV and a big battery and the majority of the bill is standing charge!