Standing charges for Elec & Gas

[expressman33]

Whereas the Gov pricecap on fuel charges is still meant to be capped at £2,500 for someone on average use the increase in the standing charges on 1/4/23 will mean those on low use will see quite a large increase in their bills .
These are the old and new tariffs from Scottish Power in my area

Current prices until
------------- 31st March 2023* ----- New prices from 1st April 2023*
Gas
Standing Charge (per day) 28.48p ------ 29.11p
Unit rate (per kWh) 10.327p ------- 10.317p

Electricity
Standing Charge (per day) 43.26p ------ 51.41p
Unit rate - (per kWh) 33.329p ------ 32.718p

So the electricity standing charge is increasing from £157.90 pa to £187.65 pa

[Sarah]

This is also the final month of the Energy Bills Support Scheme (£400 discount). Many households will need to pay an extra £66 from April (some may be eligible for alternative support).

[blythburgh]

This is also the final month of the Energy Bills Support Scheme (£400 discount). Many households will need to pay an extra £66 from April (some may be eligible for alternative support).

I am sure I heard on Budget day this will continue until I think July when prices should have gone down

[blythburgh]

Whereas the Gov pricecap on fuel charges is still meant to be capped at £2,500 for someone on average use the increase in the standing charges on 1/4/23 will mean those on low use will see quite a large increase in their bills .
These are the old and new tariffs from Scottish Power in my area

Current prices until
------------- 31st March 2023* ----- New prices from 1st April 2023*
Gas
Standing Charge (per day) 28.48p ------ 29.11p
Unit rate (per kWh) 10.327p ------- 10.317p

Electricity
Standing Charge (per day) 43.26p ------ 51.41p
Unit rate - (per kWh) 33.329p ------ 32.718p

So the electricity standing charge is increasing from £157.90 pa to £187.65 pa

Time to change or will they all be the same sort of price overall for you?

[Sarah]

I am sure I heard on Budget day this will continue until I think July when prices should have gone down

I don't think so. The price cap has been extended but not the Energy Bills Support Scheme. Only households qualifying for other support (e.g. due to low income) will continue to receive additional help.

[Richard Frost]

I am sure I heard on Budget day this will continue until I think July when prices should have gone down

I don't think so. The price cap has been extended but not the Energy Bills Support Scheme. Only households qualifying for other support (e.g. due to low income) will continue to receive additional help.

It is not guaranteed the price will come down in July it will depend on market conditions when OFGEM sets the next price cap. However I did hear (rumour) that some companies are considering releasing new tarifs onto the market in the next few weeks.

[expressman33]

I have done a few calculations bases on various usages and even for someone on "Average" use the total cost pa will still rise by about £20 pa

[jaytee]

Surely OFGEM should be looking at Standing Charge amounts - I read my bills myself, and those with SMART meters it is done automatically, so saving on meter reading costs; paperless billing so energy companies are saving on paper, envelopes and postage charges. Are these not good arguments for a reduction in Standing Charges, rather than an increase? Or is it a case of these charges being used to subsidise the can't pay / won't pay customers or us paying off the debts for the many suppliers that went bust?

[pabenny]

OFGEM largely control the standing charges. And they have chosen to load the costs of failed suppliers into the electricity standing charge.

Rather than being a discount for paperless billing etc, those who pay on receipt of bill pay more than those who pay on DD.

[Richard Frost]

The standing charge is made up of many elements not just the cost of failed suppliers. Green levies, the cost of running the networks and failed suppliers, The warm home discount scheme and other mitigation measures for the "poorest" are just some of the elements, The Energy Bills Support Scheme will also need to be paid back through this way. It was never a free gift. If the government say they will not cover the cost or that something has to be reclaimed then OFGEM has no option but to put it on the Standing charge in order to raise the money.

The standing charge for gas has been increased a little, but for electricity it has been increased massively. OFGEM has done that because there are a more people using Electricity than Gas and in theory it is fairer that the majority pay.

As predicted the other day new tarifs below the cap are starting to come through Ovo Energy have created one this weekend and others are predicted to follow in the next couple of weeks.

https://www.bbc.co.uk/news/business-65080014

Probably sensible to wait a few weeks before you consider comparing prices as it is likely Ovo Energys new tariff will not be the lowest after other suppliers announce their new plans.

After a long period of switching inactivity there are a lot of people on variable tariffs (out of contract). Energy suppliers will be keen to get customers back in contract to ensure their customer base is secure once more.