Dad's Gas Bill

[viv38]

On the last two of my Dad's gas bills a new charge of 'standing charge' has been added, adding £22.48 to the bill. He is worrying about this as his bills are so high anyway, so I rang British Gas for him. They told me that Ofgem told them to do this, so I emailed Ofgem and was told by them that this is a 'blatant lie'! So once again I rang British Gas and after quite a heated call, they still insisted it was Ofgem who told them to do it! I tried to find out what a standing charge is for, but the woman I spoke to seemed unable to tell me. I suggested it was a rip off and a way to squeeze even more money out of the customers. I came away none the wiser. Does anybody actually know what a standing charge is and if Dad refused to pay it, would he get into trouble? Many thanks.

[mccfluff]

standing charges are the other costs, like the meters, maintenance etc etc, its charged as a standing charge or within the cost of the gas unit.

this explains its quite well

http://www.energychoices.co.uk/guides/standing-charge-explained

[factor-fiction]

They have to offer a standing charge option. But you can select a different option or even switch supplier. But you may find the standing charge option works out better.
Put the consumption figures through a price comparison site

[Canary42]

They also told me it was an Ofgem requirement.

[factor-fiction]

If there is still a non-standing charge option there will be two rates- one for teh first x units and one for the balance.
I think the standing charge option is clearer to understand- the two tier charging system was liked by energy companies who like obfuscation.

[gingejbee]

A standing charge covers all those "hidden" costs in providing a gas supply....it's common for utility companies to have them.
Usually, when introduced, the "cost per unit" goes down slightly.
And...it's part of the new billing structure....so you must pay it.

[EcclesCake]

Has your Dad's tariff changed?

Seems odd that a standing charge would be added to an agreed tariff.

[Peter Pedant]

Well since it is part of the gas bill.
if he didnt pay it - he would eventually get cut off....

There is only one frim without a standing charge - and that is utilita

Standing charges are causing a certain amount of trouble in the rental sector if there is pre pay meter....imagine your Dad not using gas for two months at the end of a lease - strong reluctance to pay a gas bill when he didnt use any....

I am gurssing but I think the idea is as follows - if you have a maintenance cost which is not dependent on gas use ( like upkeep or mains repairs ) then the cost if it is included in the gas consuption bill, would relatively overcharge big users such as your Dad whereas a standing charge or fixed charge, spreads the cost

and in fact for your Dad should lead to a slight reduction...

[dunnitall]

Before charging was just by the unit there was always a standing charge for reasons mentioned. Then some changed it to be absorbed into the unit price and did away with the standing charge. I think for some reason some companies have brought the standing charge back and as ginger bee said when done so the unit price should be less than before. Anyway which way, they have got you by the S n C.

[ubasses]

Offgem has recently limited the number of tariffs the fuel Companies can offer (think it is 4) to make comparisons easier, but since April the Bill should show details of the cheapest personalised tariff for the customer. It may be that they have worked out this is the cheapest for him. Use a comparison website and see if you can find cheaper.

[factor-fiction]

All explained here on this ofgem page.
https://www.ofgem.gov.uk/simpler-clearer-fairer/simpler-choices
I think there may have been a misunderstanding if it was understood that ofgem said it's a blatant lie

[Svejk]

there's no such thing as a 'non-standing-charge' tariff at the moment.
When the gov. via ofgem announced with a great fanfare that everyone had to have the cheapest tariff, the gas firms said righto, the cheapest tariff is a standing charge one. So everyone was switched to a SC tariff. Of course, its doubled the bills for people who didn't use much gas.
Theres nothing you can do at the moment but I believe they will re-introduce a non-SC tariff later in the year.

[viv38]

Thank you all so much for your answers. Dad is 86 so it's hard for him to understand. I don't think his tarrif has changed, but I don't know what his tarrif has been. It looks as though they are entitled to charge it then from your excellent answers, although dunnitall I agree, they do have you by the s & c's ! Ofgem definitely said it was a blatant lie, I have the email, but I must admit the rest of it was gobbliedook and hard to understand ! I may look into switching supplier for him as Ofgem also said that not all suppliers are charging it. I will study all your answers and the links and try to give my Dad an answer he will understand. Thank you again.

[Svejk]

if you find one that doesn't charge it, come back and let me know, because I've been looking for one for 6 months.
I think there's one green outfit but you have to combine gas & electric and live in a tree for 2 weeks of the year.

[viv38]

Ofgem also said that some suppliers have a 'zero rated standing charge' ! So I assume there are some. Dad may not want to change once I've tried to explain it to him.

[Peter Pedant]

utilita doesnt - my neighbour tells me [have a standing charge]

[ladybirder]

Trouble is if they are not making a Standing Charge they are probably charging more for the actual gas. Makes it so difficult to compare and make a sensible decision.

[viv38]

If only the woman on the 'phone at British Gas had explained it as well as my fellow ABer's, I may not have had such a heated argument with her !

[viv38]

Get you all ways don't they ladybirder?

[viv38]

The thing is Dad looks to me more and more for help with this kind of stuff and half the time I don't know what's going on! So thanks again everyone for your help - appreciated x

[Old_Geezer]

I'm surprised you nor your dad have not come across a standing charge before. I am not keen on them but understand why a company would be keen. Maintenance of meters and suchlike are the company's fixed costs and not a service for you that you should pay for. It should be covered by the unit price of what they do supply. Overall the bill ought not change much. Sometimes standing charges are fashionable and at other times not.

I'm guessing but maybe Ofgem said all customers should be switched to their lowest cost tariff rather than specifically to one with a standing charge ?