Standing Charges

Our past two electricity statements have shown that the standing charge is some 37% of electricity used and will likely be some 27% of our annual consumption! These charges help keep the kWh price down but this charge is taken no matter how much energy is used and, though Bulb’s price per kWh is low, high standing charges mean low energy users are subsidising high energy users.

@Chrislycett

Our standing charges are relatively high but the last few price decreases have been a decrease to our standing charges so it is something we are addressing where we can.

The last price increase was an increase to the unit rates for information.

Our past two electricity statements have shown that the standing charge is some 37% of the electricity used and will likely be some 27% of our annual consumption! These charges help keep the kWh price down but this charge is taken no matter how much energy is used and, though Bulb’s price per kWh is low, high standing charges mean low energy users are subsidising high energy users. Doesn’t seem fair and definitely not eco-friendly.

@@Chrislycett

I can partly see your logic, but I wouldn’t go as far as to say low users are subsiding high energy users. High energy users also pay the same standing charge and unit costs it is just that the standing charge becomes a smaller percentage of the cost as you use more energy…

It is a competitive business and each supplier will have their own energy cost strategy of standing charges versus unit cost.

Far from me to say on a Bulb forum, but I would suggest you need to do cost comparison using one of a number comparison sites to see if your particular circumstances means there are cheaper suppliers for you to move to.

Hi @Chrislycett as @Allanr says the standing charges are the same for everyone, and as our standing charges are relatively high (especially given our low unit rate) it may not be the perfect tariff for everyone. We plan to decrease the standing charge when we can, and as we grow we should be able to bring it down a little (as we have in the past), since standing charges are one of the areas where an economy of scale really comes into play.