Ofgem is to consider alternatives to energy standing charges amid predictions that household bills will keep rising until the middle of next year.
The energy regulator said it was the “right time” to look at standing charges again as wider cost of living pressures left customers continuing to struggle with bills.Every household pays the same daily standing charge no matter how much energy they use, around 83p since the start of October, this has risen from 74p a year ago.
This means that a small household and a big household both have to pay around £303 per year, which is a rise of about £33 from a year ago.The standing charge is covered by the energy price cap, which sets a ceiling on how much suppliers can charge for it.
But energy companies are also not obliged to have a standing charge, and can charge less than what is set out in the price cap.There are already tariffs on the market with no standing charge, but a higher unit rate.
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