Sparkingchip:
It makes far more sense that you pay a higher standing charge to cover the investment in and maintenance of generation and distribution equipment, then pay a lower tariff per Kwh of usage to cover the actual running costs of fuel.
The Green Party once had a policy (and may still have it) of abolishing standing charges for electricity.
In some respects it could be argued that if a high proportion of electricity is produced from renewable sources then standing charges are a better system than paying by the kWh, as costs are more skewed towards the investment in and maintenance of generation and distribution equipment. The converse may be true if a high proportion of electricity is produced from fossil fuels.
However, I still struggle to understand the logic behind a current cap and think that a better system will be a standing charge that includes a kWh allowance where a certain number of kWh are 'free' but anything over that limit is charged for.
Sparkingchip:
It makes far more sense that you pay a higher standing charge to cover the investment in and maintenance of generation and distribution equipment, then pay a lower tariff per Kwh of usage to cover the actual running costs of fuel.
The Green Party once had a policy (and may still have it) of abolishing standing charges for electricity.
In some respects it could be argued that if a high proportion of electricity is produced from renewable sources then standing charges are a better system than paying by the kWh, as costs are more skewed towards the investment in and maintenance of generation and distribution equipment. The converse may be true if a high proportion of electricity is produced from fossil fuels.
However, I still struggle to understand the logic behind a current cap and think that a better system will be a standing charge that includes a kWh allowance where a certain number of kWh are 'free' but anything over that limit is charged for.
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