Monday 12 March 2018

Service Charges, a rip-off

I have written to and received a reply from an agency whose remit is
to assist people in changing their Fuel Suppliers.
 
Like so many, I object strongly to paying a Service - they call it a 
Standing Charge.  No matter how I do the equation, I cannot satisfy 
myself that this Rule benefits the elderly, low user.  In fact, it is an 
extra TAX on beleaguered people, many pensioners and those on 
low earnings.
 
Why is it necessary for absentee occupants to pay for an unused 
service just because there are supply lines into the home?  It is the 
same with water. Standing Charges are immoral and an easy goto 
for poorly run Service Providers abetted by inept political mice.
 
 
Thank you for contacting us.

According to the recently introduced new rules from 
the energy regulator Ofgem, all new tariffs must now 
have a standing charge. It is up to the supplier to set
this standing charge and the standing charge can be set
to zero as well. An often heard rule of thumb is "If 
your home is empty for nine months or more per year, 
it's worth checking whether a zero standing charge 
tariff wins for you." However, there are not many zero 
standing charge offers available right now. Energy 
suppliers Ebico, Green Energy and Npower have zero 
standing charge tariffs available (please note though,
these are not dual fuel offers). 

Be aware that tariffs with a low standing charge are 
likely to charge a higher unit rate. Therefore, it is 
always wise to do a comparison of your current annual  
spending and your projected annual spending. We do 
cooperate with some of the suppliers who do not charge 
a standing charge so it might be worth signing up for 
the collective switching scheme and wait for the offer.
Alternatively you can look on a comparison website, e.g. 
the website of the Ofgem accredited The Energy Shop. 

We hope this has provided you with enough information.
 
If you have any further questions please let us know, 
we will be happy to assist you.

Kind Regards,

Rob
 
The average Standing Charges are in the region of 19p 
to 24p per day or £78 minimum per annum.  That is 
unreasonable and unfair.  The last quote I had to change 
my supplier showed an annual increase of £164. Most, not 
all, was Standing Charge.  The increase is because I am a 
LOW user and prudently do not run appliances when I need 
not.  For prudence, like so many pensioners, I am also
forced into a higher payment scheme. Robbed all round.