Any support on the forum for a zero standing charge plan?


Userlevel 3
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I wonder whether OVO have looked into the feasibility of offering a zero standing charge plan?

We're in the position where our electricity standing charges in a given period are almost equal to what we pay for our units. We're fairly low electricity users anway, plus we generate our own electricity from solar panels. We'd save quite a bit of money each year by switching to a company like EBICO (who have a zero standing charge tariff), but we'd be sad to leave OVO.

Do any other forum users think a zero standing charge plan would be useful?

7 replies

Userlevel 7
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Pete632 wrote:

Do any other forum users think a zero standing charge plan would be useful?



Good question - what do you think: @andyfras @Steveo @buzzhunter @EverythingNeedsAUserName @BrizzleLass @Gizmo :?

Tim
Userlevel 5
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I know a rival company do a free economy 7 hours tariff in return for a higher daytime standing charge, that would be a nice option :)
Userlevel 2
A standing charge ensures that the underlying costs of providing a supply to the property are covered.

Charging purely for consumption encourages lower use (by sensible users). But if everyone went for it, the unit price would have to be quite high to compensate. The infrastructure needs to be paid for and continually updated and improved.

Personally, as I have solar panels and economy seven, a zero standing charge would be worth investigating. But it would it be fair? Would it only be taken up by those who benefit from being lucky enough to afford solar panels, good insulation and the ability to research such alternatives and make sense of them? If it were available I'd be looking to install solar water heating as well. A dilemma.
Yes, I agree there should be no standing charge. There isn't for petrol when you fill your tank! But if that means the cost per unit goes up by, say, 2.5% - you have the option of saving that by turning down the heating a bit, a few lights off etc; good for your balance and good for the environment. However there is no way you can make a saving r/e the standing charge.

But in an ideal world customers should have the dual option - ether no s/c and higher unit costs, or a higher s/c but lower unit costs so maybe those with large families using a lot of power won't lose out.
Userlevel 6
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I've been puzzled why OVO doesn't offer a tariff with no Standing Charge. It would seem to favour smaller properties and customers who are struggling to make ends meet. As such it would seem to be in keeping with the higher ethical standards which OVO espouses.

I can understand that the profits for OVO might be lower for those accounts in the first year, but equally, they are likely to remain loyal customers in the future. So perhaps a 2-year or 3-year option might be a possibility.

If OVO wanted to, they could try out such a tariff with those who are already on the Priority Services Register. I suspect many there are experiencing Fuel Poverty (usually defined as spending 10% or more on domestic energy).
Userlevel 6
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Hey all,

A standing charge is a daily fixed charge that goes towards the cost of supplying energy to your address. It includes the cost of the pipes and power lines, and maintenance of your meters. You pay your standing charge no matter how much energy you use – even if you have a smart meter.

Because we use a standing charge, we don’t have to use structured unit prices like other suppliers do. We believe our way is honest, transparent and much simpler.

If we were to stop showing the unit price and standing charge separately, we'd need to incorporate the cost of supplying energy to your properties into the unit rate instead, which I can imagine would result in a higher unit price being offered!

Lucy
Y
Lucy_OVO wrote:



If we were to stop showing the unit price and standing charge separately, we'd need to Incorporate the cost of supplying energy to your properties into the unit rate instead, which I can imagine would result in a higher unit price being offered!

Lucy



Yes but the point is you could offer the option. It's not that challenging - pay this price with a standing charge, and this (higher) price without a standing charge. Give the customer the choice...

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