Tue, 23 Sep 2025

Tue, 23 Sep 2025 Plan for energy bills with low standing charges

The regulator's plans could be in place by the end of January, but it warns total bills won't fall.

* By January, all energy billpayers will be offered a low standing charge tariff by their supplier.
* This follows widespread anger over high fixed daily charges, which cover costs such as connecting to gas and electricity supply.
* The new tariffs will have lower standing charges but higher unit rates for energy usage.
* Ofgem's plan aims to give households more choice on how they pay these fixed costs, but charities warn that it does not address the underlying issue of high bills.
* Energy suppliers will be required to offer at least one tariff with a lower standing charge, and tariffs must have a minimum usage level.
* The changes are subject to consultation before a final decision is made.
* Charities and campaigners have expressed concerns that the plans do not go far enough in helping those struggling to pay energy bills.
* Ofgem says it cannot remove standing charges altogether, but can only move costs around on the bill.
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