No Standing Charge Electricity and Gas Tariffs: OFGEM says they’re coming, but will they save us money ?

Why are No-SC tariffs important, and when are we likely to see them ? Our Electricity prices in UK are acknowledged to be the highest in Europe. Despite this rather serious indictment of our pricing structure, as discussed in a previous blog , our Electricity and Gas suppliers have continued to penalise low users by first re-introducing, then continually hiking up their standing charges (SCs) to hitherto unprecedented levels. This has not so far been challenged by the regulator, but has caused much resentment and complaints amongst consumers, who object to 'paying through the nose for not using any energy' as they see it. Figure 1 shows the true injustice of the policy by comparing the effective per unit price paid by consumers at different levels of annual consumption. A very low user (e.g. someone living on their own and only using electricity for lighting and low wattage appliances) with an annual consumption of only 200 KwH would pay a whopping £1.31 per Kw...