Currently with energy suppliers we have to pay two charges:
A charge for each unit of gas/electric used
A “standing charge” - a bullshit charge applied daily. The companies claim it is a charge for the service of giving us said energy
The goal of this is to get rid of the standing charge as for example if someone is on holiday with no appliances running they are still being charged. It will in theory benefit those who try to limit their energy usage as much as possible. But energy companies will figure something out to avoid losing money from this.
If the amount of energy you use is consistently reasonably low, then you are paying more per unit of energy than someone who uses a large amount of energy.l because of the standing charge.
If the standing charge is removed, then users with low energy consumption would pay less, users with high energy consumption would pay more, and the energy companies would make the same amount overall (assuming they don’t use the opportunity to increase revenue)
Can someone explain this, I don’t get it.
Currently with energy suppliers we have to pay two charges:
The goal of this is to get rid of the standing charge as for example if someone is on holiday with no appliances running they are still being charged. It will in theory benefit those who try to limit their energy usage as much as possible. But energy companies will figure something out to avoid losing money from this.
So for someone like me that uses a consistent amount of energy per day, what is the benefit?
If the amount of energy you use is consistently reasonably low, then you are paying more per unit of energy than someone who uses a large amount of energy.l because of the standing charge.
If the standing charge is removed, then users with low energy consumption would pay less, users with high energy consumption would pay more, and the energy companies would make the same amount overall (assuming they don’t use the opportunity to increase revenue)