The standing charge has always varied depending on where you live, due to different costs to supply homes with power in rural or more remote areas.
https://www.bbc.co.uk/news/business-60878314Analysts told the BBC that local suppliers are moving charges which were once part of a consumer's unit price for energy (which now has a tight upper limit on it) over to their standing charge. They are also increasing standing charges to the maximum level for each region, which means a big jump for some places.
Yes, I noticed
This has been said before..... so it really does bring into question the entire concept of national control over energy prices.pabenny wrote: ↑Fri Apr 29 2022 8:33amStanding charges have always varied from region to region. It's a legacy from pre-privatisation days. It partly reflects the differing infrastructure - eg London where most cables are underground and distances short compared with rural Wales where cables are above ground and there might be a handful of properties at the end of a long cable.
The big jump in maximum standing charges is to cover some of the costs of failed suppliers.
Not quite correct. There always has been a national electricity grid company for bulk distribution and transmission. But there have always* been separate network operators in each region (12 across GB). These are the former regional electricity boards - you may remember names such as SWEB and Seeboard. Even then pricing was different across the country, reflecting the different cost bases.
But there are now no local "network operators" - just energy retailers. All provision is from the grid companies, so the resellers just buy and sell from the providers, repackaging the basic product. That is why the likes of E-On and EDF can offer electricity across all the old regions - and why former electricity companies also offer gas, and VV.pabenny wrote: ↑Sat Apr 30 2022 2:49pmNot quite correct. There always has been a national electricity grid company for bulk distribution and transmission. But there have always* been separate network operators in each region (12 across GB). These are the former regional electricity boards - you may remember names such as SWEB and Seeboard. Even then pricing was different across the country, reflecting the different cost bases.
* always - ie from when electricity was nationalised after WW2
Sorry but that is not the case.
OK so the picture is more complicated, but what I was saying is that the energy companies today are not the network operators of yesterday - and you confirm that they are not. The fact that the situation has become more fragmented and unclear as a result of political meddling is just par for the course.Richard Frost wrote: ↑Sat Apr 30 2022 5:08pmSorry but that is not the case.
There are three levels
1) National Grid who transmit power around the country
2) In Great Britain there are eight distribution regions operated by six companies: These take the power from National Grid and distribute it to the customers in their respective areas. They will also move your power supply/meter if needed and provide new connections and in some cases upgrade the main fuse in a property.
Scottish and Southern Electricity Networks
Scottish Power Energy Networks
Electricity North West
UK Power Networks
Western Power Distribution
Your region before privatisation was Eastern Electricity now the Eastern division of UK Power Networks.
3) Then you have the supplier ie: EDF, Octopus etc. Who collect the money from the customer and via a levy from OFGEM pay for the previous two tiers. The OFGEM levy amongst other things also collects money dictated by government one example would be, Green levys another the cost of failed suppliers. These things are part of the make up of the standing charge.
The power is bought from the companies generating it and is separate from the above.
This may or may not help https://powercompare.co.uk/dno/
I am sorry but I disagree. Each DNO will have its own costs which will vary from area to area. For instance in an area where the network is predominantly overhead, The people who deal with overhead cables will be different from those who deal with underground and that may involve different costs re salaries. Costs will also be higher in an overhead area than where cables are mainly underground. Rents and rates will also have a different effect in each area. Depending on geographical spread cost will be higher to maintain the network. Rural areas will require more effort.macliam wrote: ↑Sat Apr 30 2022 5:51pm
There is still no reason why the cost of provision of the same product to different areas of the UK should be different..... unless you also accept that a car should cost more the farther you are from the factory or a loaf of bread should have it's price depend on your proximity to the bakery.
The fact that this variable "mark up" can also be used to mask other costs just proves the misuse of this lack of transparency.
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