Lower standing charge

Sup,

Bulb’s standing charge works out 91,25 GBP/year and, to my interpretation, is a reflection of your fixed overhead. While this has gone down 3%, I think it could be better explained why it can’t go down further and faster, much like how you explain why your unit rates are influenced by the wholesale markets and other factors like distribution.

So, since that overhead is quite a lot – 7.60 GBP/month is what something like netflix charges with a hefty markup for a service that has a pretty decent set of operating costs – I’d like to know why it hasn’t gone down faster, since it should go down with scale.

In a sense, all bulb does is be a middleman between the wholesale market and me, with some value-adds like customer support, billing and price averaging.

It would make a lot of difference if you focused on driving this cost down,

Hi @Nimish your knowledge of our tariff is impressive!

We have a relatively high standing charge for two reasons:
(1) Meter maintenance charges.
(2) To detract potential members that use very little energy. These consumers have a tendency of not paying for their energy usage at all as they think that they haven’t used any energy, when in reality they do! The cumulative impact of such members would result in higher charges for all members as we would need to off-set these losses.

@“Andrew at Bulb” says long-time no see and is ready for a catch-up :slight_smile:

Thanks @johnatbulb !

  1. Makes sense
  2. Makes less sense, at least for loyal customers some sort of discount would be useful. I agree that discouraging fraud is beneficial for everyone, but this should be predictable enough

I’ll get in touch with @“Andrew at Bulb” :slight_smile:

John’s absolutely right about why we have a high standing charge, but to add to this, we have dropped our standing charges and will continue to as we become more efficient. When we launched Bulb our standing charge was something like £120 a year per fuel, so we’ve dropped them by a pretty good percentage already. In fact, our last price drop was a reduction in standing charge if I recall correctly :slight_smile:

I agree, I have just had my first bill and its higher than my previous provider…I want to do the right thing, but not when I am £30 a month worse off… I will monitor the next couple of months but might be forced to switch again at these rates

I agree, I have just had my first bill and its higher than my previous provider....

Is that on a like for like basis ie same months, I ask because I was previously with OVO and my overall bills for the same periods are less with Bulb.
It is sometimes difficult to get a comparison as several factors have to be taken in to account but mainly the weather.

Hi @Jozie,

The only real way to compare here is to look at the tariff rates from both suppliers.

I suspect you’ll find that Bulb is either very similar or actually cheaper and you’re either getting statements based on estimates, or you’ve used more energy than usual.