Ticked off at standing charges?

7 comments started 2023-11-16 last 2023-11-16
GivEnergy Products
K
#1 Karen

I've just seen a news article that states OfGem are asking for peoples views on standing charges. If you are ticked off that you are paying £300 odd a year even when you aren't importing energy and being charged for the the privilege of supporting the National Grid, now is your chance to have your say

_Tim Jarvis, director for markets at Ofgem, said: "We know that standing charges have provoked a huge amount of debate in recent months, and, with wider cost of living pressures meaning customers will continue to struggle with bills, now is the right time to look at this again.

"However we proceed, there is a difficult balance to be struck, which is why it is important as many as people as possible respond to our call for input with their experiences of it, how it affects them and what the alternatives could be."

People can submit their views via email to StandingCharges@ofgem.gov.uk by 19 January._

R
#2 Rtidey

But also note that they said reductions or elimination of the standard rate would probably be balanced by changes to rates elsewhere. This might effect both import and export rates so you may not save as much as you think.

Submitting views is, of course, a good thing to do in the consultation period.

S
#3 stevelewis

Karen if you never import (or export) electricity, cut the cord and don't pay a standing charge. The reality is that we are all paying for a service and it costs money to deliver that service.

A simple way to reduce the impact of standing charges is to get rid of gas, assuming you have it in the first place.

As for fairer pricing models, I'm sure there will be lots of views, based on individual circumstances.

K
#4 Karen

Yes prices per kw will go up, but I used to be on a tariff where you paid for what you used (at a higher rate ) and no standing charge. When the gov pushed companies to all operate to the same regime (standing charge and lower rate per kw) my tariff was removed and my bills doubled overnight.
Vulnerable groups should be safeguarded, but the only people who benefit from the current system are those with big houses who use tonnes of electricity - an extra 8p a day on their standing charge won't even register, but for people on low incomes that's another £30 a year on their utility bill that they can do nothing to reduce.

L
#5 LordHippos

stevelewis In theory I don't mind paying a SC but it's gone up like 3-400% in the last 2-3 years? the excuse of paying for failed providers also seems thin because I read that was mostly done now and only a small part of the current SC is left for that.

Rest seems to be whatever Ofgem feel like adding, with little justification. Stuff like green development etc, it's all good in theory but it never seems to lead to cheaper prices for units in general, just more profit for whoever creates the additional green energy infrastructure.

Investment into green energy should be something that pays for itself and shouldn't really rely on SC to do it, I think they need to justify why the SC has gone up so much, far beyond any reasonable increase or inflation or anything.

H
#6 hhall

LordHippos Subsidies for wind & solar to make them viable.

K
#7 killythebid

hhall In Operation they do not need subsidy as the cost of generation is less than gas etc.

We live in a remote location in North Wales with a low population around us and so our standing charge is one of the highest in the country very nearly twice what it would be in Greater London for example.

I would like to see more even handed treatment across the country. Particularly when the SC may represent a high portion of the annual bill.