The energy crisis

In defence of the standing charge: there is a network of pipes, pumps, high voltage lines and substations that requires maintenance so it’s available for your use regardless of how much gas or electricity you actually consume. Your supplier has to pay a transmission charge to the local network operator for the privilege of having you as a customer attached to their network. It isn’t all about the actual quantity of gas or electricity you consume, although the suppliers have done more than their fair share towards muddying the waters here, with various tariffs that more or less decouple the actual transmission cost from their standing charge.

Originally Posted by TheDaddy

Wouldn't it be better to put the unit cost up and the standing charge down to encourage less use

Most people would not use less, just end up paying more, so .. no thanks.

[nashville]

Disgraceful charges Standing charges Etc

[Sephiroth]

Originally Posted by Chris

In defence of the standing charge: there is a network of pipes, pumps, high voltage lines and substations that requires maintenance so it’s available for your use regardless of how much gas or electricity you actually consume. Your supplier has to pay a transmission charge to the local network operator for the privilege of having you as a customer attached to their network. It isn’t all about the actual quantity of gas or electricity you consume, although the suppliers have done more than their fair share towards muddying the waters here, with various tariffs that more or less decouple the actual transmission cost from their standing charge.

Your point is a fair one. I need to look into the accounts to see whether or not the income from standing charge is matched by fixed cost expenditure.

You could say that the standing charge is akin to National Insurance in the sense that it is a "tax" that goes into the company pot as distinct from hypothecation.

[tweetiepooh]

The infrastructure costs remain regardless of the fuel cost. If fuel prices plummeted the owners would still need to keep spending and material costs still could rise. Maybe a cap on the SC paid so the companies get enough and the customers don't get hit quite so hard.


I guess it comes down to knowing who owns what and where the money goes. And would people in some areas need to pay more SC if the infrastructure to supply them is "more expensive". (e.g. remote farm may have an almost exclusive "pipe" that could cost more than a house on a street with more shared infrastructure.)

Originally Posted by tweetiepooh

The infrastructure costs remain regardless of the fuel cost. If fuel prices plummeted the owners would still need to keep spending and material costs still could rise. Maybe a cap on the SC paid so the companies get enough and the customers don't get hit quite so hard.


I guess it comes down to knowing who owns what and where the money goes. And would people in some areas need to pay more SC if the infrastructure to supply them is "more expensive". (e.g. remote farm may have an almost exclusive "pipe" that could cost more than a house on a street with more shared infrastructure.)

Customers connected to certain distribution networks do indeed pay more. Even though suppliers muck about with the standing charge you’ll notice two customers on the same tariff with the same supplier in different parts of the country will pay different rates. SSE’s network in northern Scotland is the most expensive of the lot (hundreds of miles of exposed cable with very few customers to pay for it). SP Manweb’s Merseyside and North Wales network is likewise stretched thin in North Wales, although counter-intuitively it’s also relatively expensive in Liverpool because the original electricity distribution network there was somewhat over-designed. It’s practically bomb-proof but correspondingly pricey to maintain.

It’s the distribution network operator that levies these charges but the domestic suppliers pass them on.

[Taf]

Originally Posted by TheDaddy

Wouldn't it be better to put the unit cost up and the standing charge down to encourage less use

I have had contracts in the past that had no Standing Charge. But, and it's a big but, if you used less than a certain amount each month, they tagged-on a Connection Charge to the bill. Our neighbours went abroad for over 3 months, so no gas or leccy used, but they got slapped with bills.

Originally Posted by Paul

I wonder how long this will last before they notice their system isnt working properly.

Still broken (well I assume its broken).

Despite having multiple meter readings from the day I joined, they still havent charged me a single penny for usage, just the daily SC.

At this rate I'm going to have a hell of a balance building up.

Got an email from OVO today confirming I'll get the £150 Warm Home Discount again this year.

Given they are still not charging me for any electricity at all, my balance sure is going to shoot up.

[OLD BOY]

Originally Posted by Paul

Still broken (well I assume its broken).

Despite having multiple meter readings from the day I joined, they still havent charged me a single penny for usage, just the daily SC.

At this rate I'm going to have a hell of a balance building up.

I hope you are putting money aside for that eventuality, Paul…🤔

[Mr K]

Originally Posted by Paul

Got an email from OVO today confirming I'll get the £150 Warm Home Discount again this year.

Given they are still not charging me for any electricity at all, my balance sure is going to shoot up.

Something similar happened with me when I was transferred to EON. No bills for year despite me chasing. When they did eventually sort it out ( blaming the previous supplier who"d gone bust), I put a complaint in hoping for a bit of a discount. They credited me the whole debit balance back (£270), which was a nice result.

It’s illegal for your energy supplier to chase you for debts older than 12 months, unless you’ve been actively avoiding paying them in which case the deadline is something like 7 years. In the case of them not billing you for over a year, technically they could try to work out exactly how much you used before and after the cut-off date but rather than risk being dragged through the courts if they get it wrong it’s probably just easier for them to write off the whole debt.

Well I'm not activily avoiding it, Im still paying my DD monthly, they are just not billing me for the usage, just the SC.

Originally Posted by Paul

Well I'm not activily avoiding it, Im still paying my DD monthly, they are just not billing me for the usage, just the SC.

Well at this point cross your fingers and count the months down. If they eventually try to issue a bill more than 12 months in arrears, pounce …

[jfman]

https://www.ispreview.co.uk/index.ph...witch-off.html

7 million smart meters to be cut off by 2033. (well, could)