A standing cost is a each day quantity you must pay for power, which covers all the prices of getting fuel and electrical energy to your property.
Solely have a minute? We’ve began a Shorts sequence explaining standing expenses. Watch it right here:
What prices does your standing cost cowl?
All the prices related to supplying power, earlier than you utilize any of it (which you then pay for per unit). That features issues like:
- Utilizing and sustaining the power networks, wires and pipes that carry fuel and electrical energy throughout the nation to your private home
- Holding your private home linked to the power community
- Finishing up meter readings
- Funds in direction of authorities initiatives that assist susceptible households and scale back CO2 emissions
These are fastened prices suppliers like us are charged for each meter (whether or not the meter makes use of any power or not).
Why do standing expenses range area to area?
Standing expenses range relying on how difficult it’s for suppliers to get energy to your a part of the nation – like in rural areas, the place the networks are extra unfold out and there are fewer households to separate the price. Every of the electrical energy distribution networks (DNOs). Every DNO combines their prices and splits them between everybody dwelling within the space the place they function, which suggests every area’s standing cost varies barely.
One other perverse component of our outdated electrical energy system.
Scotland, wales and northern England have a lot increased standing expenses as a result of they’ve decrease popn density – however pay the identical per unit regardless that they generate way more. Elec must be most cost-effective the place it’s generated https://t.co/yr27Bb4tYy— Greg Jackson (@g__j) October 12, 2023
How does the standing cost work with prepayment meters?
When you’ve got prepayment meters, your each day standing cost will likely be taken out of your high ups. Which means for those who don’t high up for some time, you’ll nonetheless must pay the standing cost subsequent time you high up – like for those who haven’t topped up your fuel over the summer season.
Why have standing expenses gone up?
Current will increase to the electrical energy standing cost are pushed by two modifications. The primary is the executive value of taking on the shoppers of the power suppliers that went out of enterprise in the course of the power disaster. The second is modifications to how the trade expenses prospects for utilizing the distribution community (the cables that ship electrical energy to your private home). These prices have been moved out of your unit fee to your standing cost.
We predict standing expenses unfairly influence properties in areas with decrease inhabitants density, like Scotland, Wales and northern England. And constant will increase to standing expenses make it much more troublesome for individuals to see a discount of their power payments once they’ve modified their utilization habits.
That is why we strongly opposed regulatory modifications that added extra prices to the standing cost in session. In 2022, we took a stand towards growing standing expenses, providing ‘standing cost holidays’ of as much as 6 months for 100,000 of our prospects who want it most. We additionally saved standing expenses 4% decrease than the value cap for patrons on Versatile Octopus, and selected to not enhance them in any respect with the October 2023 worth cap.