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Electricity Standing Charge increase?

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By *rFunBoy OP   Man
over a year ago

Longridge

Having lodged a formal complaint with OFGEM last week as to the misleading way they present prices on CAP rates, there was a comment in regards to a report they sent back that raised my eyebrows.

Today, on BBC Radio4, this was repeated again.

For those on Direct Debit, are you aware that the reason your electricity Standing Charge is rising to 45p/day and..

those on pre-pay meters are rising to over 55p/day, is to cover the refunds of those customers in credit when their supplier went bust.

This leads to two questions:

1) why are the worst off or those stuck on pre-pay meters renting, having to pay the highest cost to repay other customer's lost credits?

2) why are energy companies being allowed to let customers run up such high account credits on over payment of Direct Debits. The Energy companies had used these credits against business losses and not set aside and protected.

There should be a maximum £100 account credit on any account as, if this had been restricted, ut would not have hit Standing Charges so harshly.

My mother is £595 in credit, another family member is £280 and mines £450.

So, if our company goes bust, other people cover this money by increased Standing Charges?

Is this fair?

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By (user no longer on site)
over a year ago

Of course its not fair, but thats the price we have to pay for a 'energy open market' which is now back to what 4 or 5 large companies. Pretty much a monopoly, if not then a cartel. One thing with capitalism is one way or another the customer always pays. Just like the 'free smartmeters' which save the energy companies money on less meter reading. All loaded onto everyones bills so not free at all.

Just had our price increase projection that comes into force in April. £1400 a year increase with worse to come in October. oh Joy

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By *V-AliceTV/TS
over a year ago

Ayr


"Having lodged a formal complaint with OFGEM last week as to the misleading way they present prices on CAP rates, there was a comment in regards to a report they sent back that raised my eyebrows.

Today, on BBC Radio4, this was repeated again.

For those on Direct Debit, are you aware that the reason your electricity Standing Charge is rising to 45p/day and..

those on pre-pay meters are rising to over 55p/day, is to cover the refunds of those customers in credit when their supplier went bust.

This leads to two questions:

1) why are the worst off or those stuck on pre-pay meters renting, having to pay the highest cost to repay other customer's lost credits?

2) why are energy companies being allowed to let customers run up such high account credits on over payment of Direct Debits. The Energy companies had used these credits against business losses and not set aside and protected.

There should be a maximum £100 account credit on any account as, if this had been restricted, ut would not have hit Standing Charges so harshly.

My mother is £595 in credit, another family member is £280 and mines £450.

So, if our company goes bust, other people cover this money by increased Standing Charges?

Is this fair?"

Clearly not. Of the whole bill increase, it's the one that is obviously most like extortion.

Mine's risen from 29.47p/day to 55.69p/day - an increase of 26.22p/day - or 89%, if you prefer.

The only reason I can see for this is that the big six had to take on all the customers from the failed companies.

I may well be wrong about that, though.

However, I am wondering how such a hike could be justified otherwise. It's the same electricity coming through the same wires.

What changed?

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By *rFunBoy OP   Man
over a year ago

Longridge

You are absolutely right, your energy company had to take on stranded customers along with their Credit balances they were using to cover operations. My gran called it "robbing Peter to pay Paul".

Energy companies were accused last September of talking customers into leaving balances in place while at the same increasing Direct Debit payments of all, including those already overpaying.

I can understand it being added to the kw rate, but to Standing Charges and especially those trapped with pre-pay meters.

It is absurd.

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