Energy companies have allegedly accrued over £420 billion in profits since the beginning of the current energy crisis, according to a report by researchers affiliated with the End Fuel Poverty Coalition.
This analysis examined financial reports from various entities in the energy sector, including oil and gas generators, suppliers and energy neworks.
The End Fuel Poverty Coalition allege that approximately £30 billion of these profits come from the entities responsible for transmitting and distributing electricity and gas, known as “network costs,” which are covered by standing charges on consumers’ energy bills.
In recent years, there has been a significant increase in electricity standing charges, with a projected 147% rise starting 1st April.
This increase is driven by various fees, including 14 charges within each bill for network costs.
Gas standing charges have also risen by 15% since 2021.
Researchers estimate that the average household’s contribution to gas network costs has increased from £118.53 annually in 2021 to £163.69 as of April 1st, 2024, marking a significant 38% rise.
Simon Francis, Co ordinator of the End Fuel Poverty Coalition, commented: “As standing charges go up today, households will have to cut back on their energy use just to keep their bills the same.
“This means households continue to suffer as a few energy firms make billions in profits from running the electricity and gas networks.
“These numbers may look like fantastic amounts to shareholders, but the reality is that these profits have caused pain and suffering among people living in fuel poverty for the last few years.”
My energy consumption is modest (especially compared to the eye-watering sums some friends and family are paying out) and so I notice the standing charge rises more - on a number of occasions I’ll get an email saying “good news, unit prices are going down!” and it goes on to demonstrate how this is more than offset by standing charge rises, so my bills go up.
I am tempted to switch but deals are skimpy and the savings are minimal - I’d be better off on a yearly fixed deal for now but not hugely.
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Yeah, I was looking at their standing charges and unit rate in my area, which seen better. A good friend is with them, so I may just compare numbers and go for it.
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This month I am averaging £1.18/day for electricity but on that goes a 59p standing charge. So, as best I can tell, Octopus in my region is giving a lower unit cost and a lower standing charge. So just that is worth it. A flexible rate so I can time when In run the washing machine or cook would also help.
Over the last 90 days I’ve averaged 8.8kWh a day, 14p/kWh on their Agile tariff. My daily use is really about 4-6 kWh general use with the odd car charge pushing up the average. Those car charges are always timed to get the best rate I can get, but I won’t wait days for a good price.
I don’t know of any other way of getting such a low unit rate, but the standing charge is getting ridiculous. 65p per day for new customers of that tariff.