Have your say! Should the standing charge on your energy bill be abolished?

that would compel providers to offer packages without the contentious standing charge. The move is aimed at assisting those grappling with exorbitant energy bills. The standing charge is a compulsory payment added to energy bills, applicable regardless of the amount of energy consumed daily.

While the fee varies, it is intended to cover the costs associated with maintaining the energy grid infrastructure - essentially, ensuring the lights stay on. In a consultation on the standing charge, Ofgem received thousands of responses. The majority expressed a desire for the standing charge to be reduced or completely eliminated, which would then incorporate the cost into the units of energy consumed.



Those who made conscious efforts to reduce their power usage, use energy-efficient appliances, or install solar panels felt they were not being rewarded as the standing charge applied irrespective of their efforts. However, individuals within the energy sector expressed reservations about the proposal, suggesting that those unable to modify their energy consumption - such as those requiring substantial energy for medical reasons - could face additional financial strain. Ofgem is pushing for energy suppliers to show greater flexibility with billing in an effort to address "energy debt", which has seen people amass unmanageable bills amid the cost of living crisis.

Tim Jarvis, Ofgem's director general of markets, commented on the issue: "Lots of people feel this charge is unfair, especially in areas where the standing charge is higher. Our proposed changes will offer customer the chance to transfer that cost over to the unit price they pay for gas and electricity meaning they'll have more control over their bills than ever before." "We don't want to impose a one size fits all approach and move standing charges to unit rates for everyone we know that doing so would be harmful for lots of vulnerable high use consumers, including people with medical equipment in the home.

" "By ensuring suppliers have to provide the option of a no-standing charge tariff, however, we're giving people the option and more choice and control over their energy bills than ever before. It's really important to remember though that moving the costs covered by standing charges to unit rates will mean you will pay more for each unit of energy.".