Split Standing Charge Tariff Trials: Encouraging demand flexibility to meet clean power goals

The supply of electricity requires the development and maintenance of infrastructure, the cost of which are generally recovered through a Standing Charge (SC), which is separate from electricity prices. Consumers have often reported feelings of unfairness on the existence of the Standing Charge, prompting the need to look for alternative ways to recover the costs of energy infrastructure investment. Here, we run three different RCTs with different suppliers to explore novel approaches to standing charges. In all trials, we propose a novel approach that links the standing charge to usage during peak times, whereby consumers pay less (more) standing charge if they limit (do not limit) electricity consumption during peak time. The literature currently presents limited evidence on the impacts of ongoing long-term peak-time price signals in encouraging consumers to reduce energy at peak times; these trials aim to explore how a broad range of energy consumers respond to peak time price signals. Importantly, this novel approach to SC has the potential to address consumer perceptions of unfairness and encourage energy usage patterns that substantially reduce network strain – and costs – at peak times.