[News] Energy pay cap.

[Leekbrookgull]

Much discussion on R5 and with standing charges increasing seems to me giving in one hand but taking out of the other.

 

[AK74]

Cap in hand?

 

[Is it PotG?]

If the cap fits .....

 

[jonny.rainbow]

The standing charge is a joke. I was away for 3 weeks and switched my electricity off and have still been billed £10.50 in standing charges for that period of time.

 

[LamieRobertson]

Much discussion on R5 and with standing charges increasing seems to me giving in one hand but taking out of the other.

According to this (an excerpt from an article by M Lewis) …it’s increasing by £3 ….that’s not to say it didn’t go up again in the July one (did it?)

Currently, under the July Cap, it's £300 a year before you even use any gas or electricity, if you pay by direct debit. From October, it will rise to £303 a year. We've asked Ofgem why standing charges have increased again, and we'll update this story when we hear back.

 

[Icy Gull]

EDF are .01p cheaper than current rates on both Gas and Electricity if you switch to a fixed charge until Sep 26. £200 exit fee on both Gas and Electricity.

I’ll hang fire, three years is a long term guarantee but prices WILL come down as long as there is not some major escalation in Ukraine, no?

It’s a hell of an exit fee!

 

[nickbrighton]

The standing charge is a joke. I was away for 3 weeks and switched my electricity off and have still been billed £10.50 in standing charges for that period of time.

thats how standing charges work-the costs to the network providers (national grid etc) remain the samr to the supplier whether or not you are drawing gas or electric, im not saying they arent too high, just pointing out why you are charged even though you havenmt used any electric or gas.


did u switch freezer and fridge off though? -if so does the extra energy required to get the temperature back to operating level make it worth while? and the inconvienience of running down the freezer and fridge so food doesnt spoil seems a bit of a ball ache for very little gain in saving the cost of keeping fridge/freezer going

 

[jonny.rainbow]

thats how standing charges work-the costs to the network providers (national grid etc) remain the samr to the supplier whether or not you are drawing gas or electric, im not saying they arent too high, just pointing out why you are charged even though you havenmt used any electric or gas.


did u switch freezer and fridge off though? -if so does the extra energy required to get the temperature back to operating level make it worth while? and the inconvienience of running down the freezer and fridge so food doesnt spoil seems a bit of a ball ache for very little gain in saving the cost of keeping fridge/freezer going

Yes, I am aware that is how the standing charge works. My issue is that it is not how it SHOULD work.

Most days, it makes up over 50% of my total daily charge. That cannot be right and should either be capped or charged as a percentage of a person’s total usage.


I emptied my fridge and freezer before going away, so it was not a ball ache. Haven’t put anything back in the freezer yet so it is still off.

 

[Weststander]

So OFGEM are now regulating salaries and pay too. Has the power gone to their heads?

 

[Bozza]

I think the standing charge is as high as it is because we're all now covering the costs incurred when many of the small providers with sketchy business plans went out of business as prices rose.

I understand why that has to be done, but it feels a little bit unfair that those that stuck with the legacy providers are having to bail out those who repeatedly jumped from deal to deal to save money. Again, I understand why people did that, and supplier-switching was essentially encouraged by price comparison sites and Money Savings Expert etc.

 

[Leekbrookgull]

If you think that it's toxic already just wait for the peverbable to hit the fan should any government attempt to introduce a social tariff.

 

[nickbrighton]

Yes, I am aware that is how the standing charge works. My issue is that it is not how it SHOULD work.

Most days, it makes up over 50% of my total daily charge. That cannot be right and should either be capped or charged as a percentage of a person’s total usage.


I emptied my fridge and freezer before going away, so it was not a ball ache. Haven’t put anything back in the freezer yet so it is still off.

Why shouldn't it work like that? -forget the pence per day cost which is a different matter but the reason for the charge itself- supply companies have costs from the network operators, green levies etc that are charged for each supply that is connected to that network and are not related to the energy used. It matters not if that supply is used or not- the supplier still gets charged for that connected meter. (it covers the cost of the infrastrucure, repairs, etc-its not cheap replacing broken pipes, or power cables brought down by falling trees etc)

These charges are a fixed amount per supply-so if its done as a % of the unit price, those using more energy will then pay more and subsidise those using less . Hardly fair on those cutomers, why should customer A pay more for exactly the same thing than Customer B?

There is a different question as to how much that daily charge should be- and whether the amount is reasonable

If your usage is low enough that the standing charge element is as high as you say- a quick google search shows that two suppliers which offer tariffs with no standing charge for electricity or gas are Ebico and Utilita. It may be worth checking them out- however they will likley charge moire per kwh than other suplliers

 

[nicko31]

Looking a wholesale prices they've been on the up again, so if anything prices may rise a little in 2024. The era of cheap energy seems to be over for the time being.

The one plus is consumers are less wasteful. Many businesses less so and waste energy without a care in the world

 

[chickens]

I think the standing charge is as high as it is because we're all now covering the costs incurred when many of the small providers with sketchy business plans went out of business as prices rose.

I understand why that has to be done, but it feels a little bit unfair that those that stuck with the legacy providers are having to bail out those who repeatedly jumped from deal to deal to save money. Again, I understand why people did that, and supplier-switching was essentially encouraged by price comparison sites and Money Savings Expert etc.

Herein lies the problem in trying to shoehorn privatisation/capitalism into essential infrastructure where it can’t really exist.

We don’t have eight different mains gas/electricity connections to our house, and we’re not able to select the one we like best, in the same way you can’t put ten different trains on the same piece of track and ask consumers to choose the one they like best.

These privatisations have created a fake market. I’m personally of the opinion that water, energy and rail are vital public services. The idea that a significant percentage of the money we pay as our bills immediately leaves in the form of shareholder dividends and board remuneration, and does nothing for the service we’re paying for, seems incredibly inefficient to me.