Ofgem launches consultation on standing charge changes in energy bills

The energy regulator is consulting on proposed adjustments to standing charges in energy bills, aiming to address concerns about fairness for prepayment meter and standard credit customers

Ofgem is proposing changes to prepayment meter standing charges and debt-related costs to address concerns of unfairness and heightened vulnerability for specific customer groups.

The proposal involves levelising standing charges for prepayment meters (PPM) and direct debit (DD) customers from April 2024, followed by a second stage in which DD and standard credit (SC) debt-related costs would be levelised.

The changes aim to reduce the financial burden on vulnerable customers, particularly PPM and SC customers, who currently face higher bills.

Ofgem is seeking feedback on the proposals until 2nd January 2024.

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