What Is The Daily Standing Charge.....

[trt]

that Energy company's charge FOR?

I am changing company's from B/G, and notice they charge me 26p a day for both electric and gas.

When added up, that's quite a lot per year. Girl at B/G when I phoned wasn't sure!!!!!

[Wak]

I imagine it's a rental charge on the elec and gas meters which may need renewing occasionally.

[factor-fiction]

You don't have to go for the standing charge option, but if you don't you will have to pay a higher rate for the first X units and a lower rate for the remaining units.
It's supposed to cover things like the cost of installing,maintaining and reading meters; the cost of billing; the cost of maintaining the pipes/cables. I think there must also be an element to cover some of the supplier's environmental obligations, subsidising social tariffs and covering arrears for those who don't pay.
I can see that there are fixed costs but i think it would make billing and comparisons more transparent, and encourage more careful use of energy, if there was no fixed charges allowed and only one unit rate

[whiskeryron]

When I go to a supermarket I pay for the goods I have purchased I do not have to pay them for being there. I feel that Electricity, Gas & Water company's should only charge for what they supply.

WR.

[gingejbee]

ron: if you had stuff DELIVERED from the supermarket, you would have a fixed standing charge...delivery cost.

[whiskeryron]

OK, Fair answer.

WR.

[factor-fiction]

And I understand OFGEm have instructed the energy firms that one of their 4 options they offer must include a standing charge.
So maybe we should blame the regulator.
Having said that, they've always done it- either with a standing charge a standing charge dressed up as a dual rate system "first 100 units a month at 20p a unit, all units thereafter at 10p a unit"

[trt]

Thanks folks.