[Teebees]

Why is my standing charge for electricity so high? I checked online, and according to this link, it should be 46.2p but instead it is showing 54.5p

DOMESTIC ENERGY PRICES

Electricity Next Flex
28.82 p/kWh 54.52 p/day


Gas Next Flex
7.28 p/kWh 27.22 p/day

Location: West Yorkshire/Sowerby Bridge


Thank you.

[DebF_EONNext]

Hey @Teebees,

Thanks for your post, the link that you have posted is for E.ON Energy and they don't include VAT in their rates they add it on seperatley however our rates are inclusive of 5% VAT, it's the same cost only we show it included and E.ON charge it separate.

I hope this helps 😀

If you need any further info on your tariff then it might be worth popping a message over to our energy specialists.
Deb 🌻

[meldrewreborn]

@Teebees

There are different price caps for direct debit, non direct debit credit payment and prepayment, then with / without VAT, and for different regions. And fixed prices are not regulated at all. It gets hellishly confusing.

[Sometimes]

@DebF_EONNext, 46.2p plus 5% VAT is 48.5p, not 54p!

Is there an explanation as to why the standing charge has increased so much? The energy crisis doesn't result in higher transmission and distribution costs does it? Also, I have been on a 100% green tariff for some time, how come the gas price increase has made the wind more expensive?

[Andy65]

Originally Posted by Sometimes

@DebF_EONNext, 46.2p plus 5% VAT is 48.5p, not 54p!

Is there an explanation as to why the standing charge has increased so much? The energy crisis doesn't result in higher transmission and distribution costs does it? Also, I have been on a 100% green tariff for some time, how come the gas price increase has made the wind more expensive?

The standing charge has increased because OFGEM have essentially used it to cover the cost of the 30 odd energy suppliers that have recently gone out of business.
I would thing that wind generated power is still sold on the wholesale markets and the cost therefore is going to fluctuate. Over the last 12 months wind only accounted for 20.5% of the UK's usage, Gas accounted for 39.3%, 8.9% was imported.
100% green/renewable tariffs do not mean that you and I are solely supplied with energy from renewable sources, it's not possible.

[Sometimes]

@Andy65 Hmm… so I have to pay for the failed business plans of thirty companies that I chose not to use? Harsh.

It’s odd that the government bailed out Bulb but didn’t do the same when thirty odd companies simultaneously went under for the same reason as one another.

I’m actually reasonably familiar with the trading arrangements but am surprised that more people aren’t asking the questions to understand why the energy market works to hurt consumers when this kind of event happens.

[theunknowntech]

Those 30 odd companies were small enough to be absorbed into another supplier, which was (and remains) the easiest and cheapest way to rescue smaller failed suppliers. The Supplier of Last Resort process is well tested and while not perfect, it's the best we've got.

Bulb however, was too big to be swallowed up via SoLR, so instead an Energy Supply COmpany Special Administration Order (ESCA) was issued.

[meldrewreborn]

@Sometimes

The cost of bailing out the failed energy companies has been put at just under £100 per household. Most of the cost is due to those failed companies not having paid for their supplies in the wholesale market, rather than the cost of honouring the credit balances of their customers. And all costs were lumped into Electricity standing charges, even if the failure was in a gas company. And by lumping it on standing charges small consumers pay the same contribution as large consumers which doesn't strike me as at all fair.

Bulb is virtually nationalised but the Government is trying to off load it - keep watching the press. I don't know whether the Government will swallow the loss on Bulb itself - I suspect it will - as the alternative is another substantial twist upwards in energy prices.