[meldrewreborn]

The chancellor is framing her budget measures. There is speculation that the Green levies and social charges currently in our electricity standing charges could be met instead from taxpayer funds - how that money would be raised is a different area of speculation.

High standing charges have been a long standing issue and because everyone pays them irrespective of income or wealth they are particularly regressive - they proportionately impact low energy users and low income groups to a greater extent than others.

The energy select committee heard evidence from several energy company executives this week where it was clear that without a change in policy standing charges would only increase yet further due to planned net zero costs already in the pipeline.

OFGEM are finalising proposals that would see suppliers having to offer a reduced standing charge tariff but charging higher unit prices. Whether that would go ahead if the levies are removed remains to be seen. Customers on fixed tariffs would of course look to exit those contracts unless suppliers voluntarily (or under duress) lowered the standing charges appropriately.

Interesting times!

[Connor_EONNext]

@meldrewreborn Thank you for this, very interesting times indeed! - definitely a huge thing that could impact and help a lot of low usage customers ⚡

[DebF_EONNext]

@meldrewreborn Have you noticed much of a difference in your bills since the levies discount was applied?

I'm a high user and although it's only a slight reduction I have noticed the difference 😃 I've also managed to reduce my usage by just under 100kWh a month compared to last year so that's having an impact too!

[meldrewreborn]

@DebF_EONNext

my consumption is not altered other than by seasonal variations and holiday reductions happening at different times. My bills are lower because of the levy switching as will everybody’s I think.
OFGEM have not implemented any low standing charge tariffs yet - autumn is the latest loose target I think. My total electricity consumption is about 1650 kWh per annum and I doubt that I can reduce it further without affecting my lifestyle. My gas is under 12,000 kWh per annum and I am not currently prepared to sacrifice warmth for monetary saving. My DD is currently £100 per month and my fix has another 12 months to run.

while the media harps on about high energy prices, in objective terms the price cap has over the past 4 years fluctuated a bit up or down but not increased sharply. The big increase happened about 6 years ago, and then there was the Ukraine war price shock after that, but the cap has settled in recent years. The effects on consumers differ by their mix of fuels - the price of gas has increased sharply in the last 2 caps, reflecting world events. But many customers are electricity only and less affected than gas consumers. The devil is in the details.

[Indyk_EONNext]

Thank you for sharing! @meldrewreborn These are certainly fascinating times! The Chancellor is performing quite the balancing act, shifting those levies onto the taxpayer might provide some relief on energy bills, but as you mentioned, that revenue has to be sourced from somewhere else!

My recent electric smart meter installation has really helped with managing usage especially when it comes to my son playing video games, as reducing his tv time has not only reduced my energy bill but also improved his reading skills.