Standing Charge?

Substack diary no.148: Saturday, 9th. May 2026

Yesterday I managed to avoid washing dishes and, because I didn’t have a ‘dinner’ as such it didn’t really matter. Like most days I had a wash rather than a shower. Just two of my many ongoing efforts to save money on energy bills. Consequently my gas bill for the day was only 3 pence. However, add to that the 32.7 pence Standing Charge and my actual bill – the amount of cash my energy company will take from me – is 33 pence – rounded down.

This demonstrates very clearly the unfairness of energy billing in Britain. A family that used a modest 50 pence-worth of gas yesterday would also have paid 32.7p Standing Charge. This is what economists call ‘regressive’ pricing and, just like a regressive tax, the less well-off are hit harder than the better-off.

The Standing Charge is vital and at this point in our history it needs to be high. Why? Because our energy infrastructure is old, creaking at the seams and unfit for purpose in the modern world.

If we had much higher standing charges back in 2000 we could have replaced much of the infrastructure far sooner and made the switch from dirty to clean energy much quicker. Oil crisis? What oil crisis! That is what we would be saying right now. Our wind, sun, tides and waves provide far more energy than we could possibly consume, and not one atom of it passes through the Straits of Hormuz. It is an energy source that sits right here in and around Britain where no foreign government can get at it.

So, if anything, I would support an increase in the standing charge, but let’s have one that is fair and where people who do their bit and use less energy are not penalised. Simples!

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