Plan for energy bills with low standing charges
Summary
Energy regulator Ofgem plans to make it mandatory for all energy suppliers in England, Scotland, and Wales to offer a tariff with low fixed daily charges by the end of January. This change is in response to customer complaints about high standing charges, though customers will pay more per unit of energy consumed if they opt for these tariffs. Despite the new offering, there are concerns that these changes won't solve the issue of overall high energy bills.Key Facts
- Ofgem will require all energy suppliers to provide a tariff with lower daily fixed charges by the end of January.
- Customers who choose the low standing charge option will pay more per unit of energy used.
- The plan is a response to customer concerns about fixed charges, but it doesn’t address the issue of high overall bills.
- Standing charges cover costs like energy transportation, supply security, and network investment.
- Electricity standing charges will typically cost 53.68p a day; gas charges will be 34.03p a day.
- In some areas, such as North Wales and Merseyside, electricity standing charges can reach nearly 70p a day.
- Energy bills are expected to rise by 2% in October as part of an increase linked to Ofgem's price cap.
- Some charities and consumer groups argue these plans won’t lower bills for those struggling with energy costs.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.