Standard Charge

Can somebody please inform me what exactly is the Standard charge for , i can understand the cost increase on fuel but the meter require no maintenance and it is there for Bulbs convenience , to make sure they are getting paid for what the customer uses, so why do we have to pay for it

You’re not just paying for the meter. You’re also paying for the National Grid infrastructure, eg the power lines, and everything else involved in getting the power to your meter.

Also, part of the charge is also paid to the companies who have taken on the customers of the failed companies. The money is used to fund any credit balances transferred with the customers.

So why does it keep going up when there is a price increase is the distance to the national grid increased , and what the hell has my charge got to do with a failed company and funding other companies credit balance

Those are questions you need to ask OFGEM who sanction the increases. I’m just a customer, like you.

I can’t post a link, but this is the answer given by OFGEM to the Money Saving Expert website:

As you can see from the table above, the standing charge for electricity is set to rise massively from 1 April – from 24.88 pence per day to 45.34p.

With the massive rise in wholesale prices over the last six months or so mainly caused by an increase in gas prices, many are asking why there is such a heavy hike to the electricity standing charge.

We asked Ofgem this question, and it told us the rise is due to:

** The cost of moving everyone whose firm went bust to new suppliers.**
** Increases in fixed network costs (the cost of maintaining the energy networks).**
** An increase in policy costs (such as green levies and the rise in the warm home discount rebate).**

In addition, the standing charge on all tariffs, including fixed ones, will go up further from next April for the next five years to cover the £200 loan-not-loan which everyone will receive in October (probably by about 11p per day).

My understanding was that the £200 would be repaid by adding £40 to each April bill for the next 5 years. I may be wrong.

I believe it will indeed be £40 per year for five years, but spread out by increasing the daily standing charge rather than hitting everyone in one go each April.

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