Read this on Martin Lewis Money saving web site.
Standing charges have rocketed, and they’re not coming down
On Saturday (1 July) the Energy Price Cap – which 90% of those in England, Scotland and Wales are now on – dropped, meaning an average reduction to bills of 17%. Yet that’s only a fraction of the story. Let me explain using direct debit as an example:
[Technical note for pedants: we’re actually moving from the Energy Price Guarantee to the Energy Price Cap, so the ‘from’ rates are the old EPG rates.]
Standing charges remain UNCHANGED (29.11p/day gas, 52.97p/day elec)
Electricity unit rate has DROPPED roughly 10% (from 33.21p/kWh to 30.11p/kWh)
Gas unit rate has DROPPED roughly 25% (from 10.31p/kWh to 7.51p/kWh)
As it’s the unit rate not the standing charge that has changed, higher users, especially those who use gas, will see a substantially bigger than 17% drop. While lower users (who often tend to be on lower incomes), especially those who only have electricity, will see a substantially lower than 17% drop.
Joss
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