So Angry - Energy Price Cap, April

[barry1010]

Hurrah!  The cost per unit of electricity is coming down, as predicted but the standing charges are increasing.

Very disappointed and angry about it

BBC News - Typical energy bill to fall £238 a year from April under new price cap
https://www.bbc.co.uk/news/business-68353627

[bednobs]

you are angry about paying less??

[bhg481]

Perhaps they could go back to the charging system they had years ago where the first N units cost more than the remaining ones ie, in effect the first N units paid the standing charge. That way empty properties would pay no standing charge and people who managed to could their usage to less than N would pay a smaller amount.

[barry1010]

I'm angry about the increase in standing charges which we cannot control. 

Martin Lewis and others have been campaigning for a reduction in the cost of standing charges, at least whilst our bills are still going to much higher than before the Ukraine situation 

[barry1010]

I remember that, bhg, but it would probably mean that the poorest and single people would be paying disproportionately more

[bhg481]

OK then, barry. Turn it upside down and charge less for the first N units and then increase the price per unit. A great incentive to cut usage for those who use a lot. N could be dependent on the type of property.

[barry1010]

Can't see a flaw in that, I'll give it some thought

[youngmafbog]

Standing charges have increased to cover the cost of the failed utility companies and also the very expensive smart meter rollout.  

If you want to be green, you have to pay for it.

[barry1010]

You are suggesting I have a choice re going green

Obviously I don't 

[nicebloke1]

According to the news I saw this morning the standing charge also covers the unpaid debts of customers, so this business of not cutting off none payers is also costing the ones that do pay. Maybe it should work both ways, ie, get a discount for paying on time throughout the year.

[newmodarmy]

I do get a discount for paying DD on time

[barry1010]

I alsogetya discount for paying by DD but it is actually a penalty for those who don't. 

[nicebloke1]

I also pay by DD, but at pains to find the so called discount, in fact if it is true that the standing charge does cover bad payers then the DD discount is reduced? It's the same old story, give with one hand , and take back with the other.

[brainiac]

The iniquitous Standing Charge hits low users like me disproportionately - when I first moved to this house I was on a 'no standing charge' tariff, where you pay a bit more per unit, but no standing charge, a much better deal for low users.  All suppliers were instructed to get rid of it.

My last quarterly gas and electric standing charges were both higher than what I'd actually used.

[youngmafbog]

//so this business of not cutting off none payers is also costing the ones that do pay.//

Well yes, where do you think the money comes from?

[Old_Geezer]

Standing charges cover the fixed costs of a company, which the company should cover itself out of their vast profits.

 

There is zero justification for demanding the customer pays what is the company's costs. Unit cost should be the only thing charged for because it is the only thing purchased.

 

What next, the local supermarkets claiming it has rent & rates to pay so everone in the area must cough up whether they shopped there or not ?

[barry1010]

OG, I don't think standing charges pay for a company's fixed costs, I believe the charges pay for the maintenance of the infrastructure which they don't own and the warm house discount that those on pension credit and low income get. 

[barry1010]

OG, it's the same as paying the line rental for a landline phone.  

[Old_Geezer]

And equally bad.

It's still it's fixed costs because maintenance etc. is unrelated to the number of units supplied.

[gingejbee]

^Yes, but you still need the mains/cables to your home and associated maintenance staff - no matter how much or little you use.

[10ClarionSt]

Any savings will be swallowed up by the recent increase in the price of petrol, 8p per litre in the last 2 weeks. And who is always first to put their foot on the gas? Tesco!  And always last to bring the price down? Yep. Tesco!