There can be few people who are unaware of the forthcoming hike in energy prices.

My fixed term gas and electric plan with British Gas came to an end on the January 31, so I took a close look at what the figures were if I let my contract revert to the basic tariff, or if I chose to take up the new fixed price tariff being offered.

We all know that the basic price for gas and electricity is set to rise, but what was a complete surprise was the huge difference in the standing charge between tariffs.

On the standard variable tariff for gas it is 26.123p per day, and on the exclusive fixed price tariff it is 30.889p per day.

Isle of Wight County Press:

The default tariff.

For electricity the standard charge is 24.113p per day and a staggering 44.551p per day for the fixed price tariff.

If you think of the standing charge as being similar to line rental for your telephone line, (the cost of the infrastructure to supplying the commodity), surely this doesn’t change depending on which tariff you are on, the cost of providing the supply infrastructure will be exactly the same regardless of which tariff you are on?

Isle of Wight County Press:

The exclusive fixed price tariff.

Is this an example of sharp practice by British Gas/Electric amidst an energy crisis?

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