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Why have Standing Charges also increased so much with the Energy Crisis?



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Userlevel 4
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I must admit I was very surprised at the way it has increased so much in one year, two increases for no apparent reason.

There offer of a fixed rate was a bit of a gamble , I did not take it up and I think things will level out over the period.

I have not looked at alternatives as OVO are very good normally.

Userlevel 7
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Thinking about this winters energy support these additional parts of the standing charge might be part of the reason 

  • Funding greener energy development

  • Government initiatives to support vulnerable households

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Isn’t the standing charge levied by the national grid or whatever they’re called these days? It’s that company therefore putting up the standing charge. 

Userlevel 4
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If that is so, why does every company have a different rate?

 

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Good question 

Userlevel 7
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No, it’s not National Grid. Each supplier sets their own standing charges

Userlevel 4
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Just as I thought but was not going to be pedantic being a newby to the forum.

This  is my current standing charge and i cant find a single person online who is paying this much 65.40p per day. Im on a simpler energy plan if that helps. Cant understand how this can be right.

Userlevel 7
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Is that for one fuel only? Electricity or gas ? Mine is 72.68p for both fuels. It does vary with region, I’m in S E England.

Userlevel 7
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@damnedtemplar 

What do you see on this page for standing charges?

https://account.ovoenergy.com/plan

This will be the rates excluding VAT on this page that you are paying. 

You can see the rates for your region for all tariff here to check. Just enter your post code 

https://plans.ovoenergy.com/

Are they the same? 

@damnedtemplar

What do you see on this page for standing charges?

https://account.ovoenergy.com/plan

This will be the rates excluding VAT on this page that you are paying. 

You can see the rates for your region for all tariff here to check. Just enter your post code 

https://plans.ovoenergy.com/

Are they the same? 

perfect that link really helped it appears is is correct thanks

Userlevel 7
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@damnedtemplar

What do you see on this page for standing charges?

https://account.ovoenergy.com/plan

This will be the rates excluding VAT on this page that you are paying. 

You can see the rates for your region for all tariff here to check. Just enter your post code 

https://plans.ovoenergy.com/

Are they the same? 

perfect that link really helped it appears is is correct thanks

Regional rates vary a bit unfortunately on the default variable plans. 

What you will nearly always see in the press are average unit rates and standing charges, so some regions will pay a  bit more and some a bit less.

You will also find slightly different rates across suppliers sometimes as the Ofgem price cap is a cap not a floor, suppliers can choose to offer their default tariff with lower rates.  Here is one example where Octopus lowered the standing charge last year, but they have yet to announce what will happen when the new cap kicks in on 1st July

https://octopus.energy/press/octopus-takes-stand-against-standing-charges-with-40m-package/

Userlevel 7
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Good idea about their standing charge holiday.. I wonder how that went ? 

Userlevel 7
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Good idea about their standing charge holiday.. I wonder how that went ? 

Yep, it is a very simple idea that could be expanded. 

Mobile and Broadband suppliers have social tariff, so it is not impossible for Energy Companies to introduce something similar, either mandatory or voluntarily 

 

Why is my more than my electric usage 

Userlevel 7

Hey @Gmelville,

 

Unfortunately OVO don’t offer a tariff without standing charges. There may be some other companies out there that do, so if you’re a low user it might be worth looking into switching.

 

These topics may have some helpful advice:

 

 

Prices have increased significantly in recent years but there is lots of support available. Please visit this page for more information. 

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