Thu, 20 Feb 2025

Thu, 20 Feb 2025 Backlash over energy standing charges shake-up

Charities and energy providers have criticised plans to change the way standing charges on gas and electricity bills are paid.

* Charities, energy providers, and billpayers have criticized Ofgem's plans to change standing charges on bills
* The regulator wants to offer a choice of tariffs that shift these fees elsewhere on people's bills
* However, critics say this plan is complicated and fails to address the basic cost of standing charges
* Standing charges are fixed daily fees covering the costs of connecting to gas and electricity supplies, typically totaling over £300 per year
* Ofgem received 30,000 submissions opposing standing charges, with many considering them unfair as they have no control over how much is charged
* The regulator's plans could lead to higher prices for energy used, particularly for pre-payment meter customers
* Charities and suppliers are concerned that the proposals will not tackle the high cost of energy or address affordability issues
* Customers are already £3.8bn in debt to suppliers, with record levels of debt due to rising energy costs
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