Martin Lewis points out 'problem' with new 'zero standing charge' energy tariffs

manchestereveningnews.co.uk:

Martin Lewis has pointed out a 'problem' with plans for a new Ofgem price cap set to have 'zero standing charges'. Standing charges are fixed daily charges added to a household's energy bills which pay for the fixed costs of supplying energy to homes.

Ofgem, the energy regulator, has announced plans that would require suppliers to offer household tariffs that are free of standing charges alongside the standard price cap.

The regulator said it wants energy firms to start offering the new tariffs by next winter as part of its plans to address ballooning household energy debt. READ MORE: Martin Lewis sends message to anyone buying NS&I Premium Bonds for children Under Ofgem’s price cap, standing charges have risen by 43 per cent since 2019, and from January will cost dual fuel households an average of £338 a year.

The charges disproportionately affect those who use less energy as the fixed costs make up a higher proportion of their overall bill.