to shout fucking hell at my emails! Why is my electricity standard charge almost doubling?.

[FrecklesMalone]

In preparation for the huge utility prices in April we've been planning how to massively reduce our usage. We are already financially on a knife edge. However we've just got a email from Bulb energy saying that they are increasing our electricity unit rate from 20.131p to 28.020p per kWh and electricity standing charge from 24.373p to 42.242p per day.
And increasing our gas unit rate from 4.043p to 7.343p per kWh and standing charge from 26.112p to 27.219p per day.
Just in case people don't know what the standing charge is. This is a charge that you have to pay whether or not use any electricity that day and is in no way related to how much electricity you use.
This means that we have absolutely no control over this huge price rise. No matter what electricity we use were still going to have that extra price rise of over £80 a year on standing charge alone. This is feels completely unfair. As it means even if you you are massively reduced your usage, or use alternative energy that you will still be hit by this bill no matter what. Also so when prices do eventually come down I guarantee that the standing charge will remain static or not come down as much. Am I being unreasonable to think that this is is just a way for the energy companies to make more money.

Could it be because there's profit for the energy company built into both elements of the bill, the standing charge and usage. If they think they won't get much profit out of your usage, they whack up the standing charge? Just wondering.

Our electricity bill is increasing by approx 42% (SSE). However, our electricity use will have declined by about 20% (I'm paying estimated bills for now - it's strange that estimates are not based on actual usage on previous bills same quarter, but appear to be on actual use + 10% , so given they always over estimate and our account is always about £100 in credit before any bill hits, so my thinking is that we may as well pay estimated bills of supposed higher usage at the old rate (rather than them simply accrue our money as cash in credit we may as well allocate it to electricity paid in advance), then we simply rectify with a correct reading at the new rate after the increase. They've increased our direct debit twice since the last actual increase (from £49 to £58 despite me saying that £49 was fine for the October increase, I see this month it's gone up to £72.

Anyone know if we can get a credit for 3 days standing charge when we had 3 days without any power in the storm?

They're not putting up the standing charge to make huge profits, they're trying to pass on the higher costs they're charged by their suppliers. That's not to say that it's the perfect scenario in terms of effective economic markets. But it's not profiteering either at the moment, it's more about financial survival.

I'm not denying that their costs for the fuel have gone up massively and that they've been selling the fuel at a loss - but why not put all of the necessary increases on the fuel and leave the standing charge alone?

Yes, it's not the larger part of the increasing prices, but it seems so unfair to force people to pay more, even if they severely restrict their usage, to effectively subsidise those who can still afford to keep using it as normal.

To me, it's the equivalent of them increasing the punitive charge for (mainly older) people who pay by cheque and/or can't/don't want to manage their account online - "Yes, gas and electricity wholesale prices have gone up loads, so that's why we need to charge you a tenner instead of a fiver for not having being comfortable paying by direct debit or having access to the internet."

I've had a quick look into what's behind the sharp electricity SC increase.

Virtually the whole increase is accounted for as 'Network Costs'. Ofgem explain Network Costs in this way:

Network companies charge your supplier an Ofgem-regulated price for their use of the energy network. This money goes towards maintaining, running and upgrading the networks.

Network costs vary year to year. For example, to reflect usage or how we need to allocate costs on different parts of the network.

Network costs include ‘balancing’ charges. Supply and demand is balanced second-by-second for electricity and daily for gas. These charges vary over time.

I'm still not clear exactly why these 'network costs' have risen so sharply though. Maybe it's the last item on the list - 'balancing charges'? If that covers the costs of having to pay extra to cover undersupply then I can imagine that it's become more expensive recently.

@FatsFredsFriedEgg

Could it be the increased number of severe storms taking out vast amounts of the network this past year?

I’ve just fixed at a rate above the price cap. I’m paying more now but will be protected from further rises in October when the shit really hits the fan and is compounded by the Russia issue.

I’m paying 680 per month. Yes I run a large pond and a hot tub and I’m not really frugal. It’s gone from 329 a month to to 670

Sorry - pressed post too soon

680. But that will Be it for the next two years

[quote Ariela]@FatsFredsFriedEgg

Could it be the increased number of severe storms taking out vast amounts of the network this past year?[/quote]
I thought of that but it seems unlikely because it's over every region. I don't think the storms caused problems quite so widely?

These are the regional increases in the per customer network costs:

Eastern £44.75
East Midlands £68.77
London £27.56
N Wales & Mersey £79.28
Midlands £75.74
Northern £73.77
North West £58.18
Southern £63.00
South East £57.38
South Wales £76.58
South Western £85.67
Yorkshire £71.21
Southern Scotland £81.65
Northern Scotland £74.46

These are the increases over the last network costs quoted. Previous network costs were typically in the region of £12-£20 and relatively consistent. For example N Wales and Mersey over the last 3 years has been £13.43, £11.35, £11.35, £12.74, £12.74, £92.02.

Energy companies are going bust all over the show
Supermarkets make far more profit than energy companies but energy companies need to make money in order to invest in new greener and renewable energy sources.

Standing charge covers the cost of supplying your energy it does not give energy companies massive profits and most energy companies are making losses at the moment…

For anyone worried about their energy bills there is lots of help and support available

www.citizensadvice.org.uk/consumer/energy/energy-supply/get-help-paying-your-bills/grants-and-benefits-to-help-you-pay-your-energy-bills/

I suspect it's because the standing charge is a way of increasing bills by stealth. A lot of people don't know how fuel bills work (not a criticism; it should be taught in schools because it can be tricky to work out/compare) and it's easy to slip in an increase to the standing charge in the hope that people won't notice too much or understand what it is.

I strongly suspect "network costs" and "balancing charges" translate as "Our profits are non-existent or not big enough so you're going to pay for it". See also: hikes in direct debits which are, in effect, a nice little nest egg for energy companies. These seem to be calculated along the lines of "We estimate your usage to be X and we'll ad on 30% so that credit you accrue sits on our asset sheet".

From a thread on the subject yesterday:

For those who have had suppliers increase their DDs, you don't have to accept their estimates or changes. My supplier tried to double my monthly payment and I logged in to edit it back to what it was because I prefer to have a small DD and then make a manual payment for anything over and above that. Of course, that only works if you want to pay that way - some would prefer to average things out over the year, in which case a DD that is, in effect, your yearly usage divided by 12 works fine.

My electricity account is only ever in a small credit (over the summer when my usage is less than my DD) or at zero balance (in winter, because I give a monthly reading, get a monthly bill and pay that sum less the value of my DD). I refuse to allow my money to sit in a supplier's bank account, not least because they can be sly buggers about giving big credits back. Of course, they always witter on that it's in your interest but really it's in theirs and they can fuck right off with that. On the odd occasion I've had a supplier quibble about reducing a DD I've offered them a choice: reduce the DD or I'll cancel it. They've never once chosen the cancel option.

I strongly suspect "network costs" and "balancing charges" translate as "Our profits are non-existent or not big enough so you're going to pay for it".

These are the amounts that the Regulator has confirmed that the Network companies are allowed to charge the companies we actually buy our power from. They're separate companies. www.energynetworks.org/operating-the-networks/whos-my-network-operator

[quote FatFredsFriedEgg]I strongly suspect "network costs" and "balancing charges" translate as "Our profits are non-existent or not big enough so you're going to pay for it".

These are the amounts that the Regulator has confirmed that the Network companies are allowed to charge the companies we actually buy our power from. They're separate companies. www.energynetworks.org/operating-the-networks/whos-my-network-operator[/quote]
But then why have they risen as much as they have? I can't believe their costs have gone up by the percentages this - and other threads - indicate, so what are the price hikes paying for?

Anyone know if we can get a credit for 3 days standing charge when we had 3 days without any power in the storm?

Why would you bother? For a credit of a pound or so?

@FinnulaFloss

Anyone know if we can get a credit for 3 days standing charge when we had 3 days without any power in the storm?

Why would you bother? For a credit of a pound or so?

In England, you might be able to apply for compensation from the network provider (not your energy supplier).

www.citizensadvice.org.uk/consumer/energy/energy-supply/problems-with-your-energy-supply/get-compensation-if-you-have-a-power-cut/

For disruptions to energy supplies ie power cuts it’s the distribution network and not your supply who would provide compensation.
www.uswitch.com/gas-electricity/guides/how-to-get-power-cut-compensation/

But then why have they risen as much as they have? I can't believe their costs have gone up by the percentages this - and other threads - indicate, so what are the price hikes paying for?

That's why I started looking into it @GrannyWeatherwaxsHatpin, I'm still none the wiser though - except that I now know that the energy companies aren't just pocketing it.

Webuilt yes, agreed many do just get it as an extra bonus. The poor elderly may get the help they need, great, but those not in need also receive it simply by virtue of age. Unfair.
They introduced a system to remove my child allowance quick enough a few years back, introduce similar.
It's longevity doesn't make it right or fair.