Ofgem to conclude consultation on energy standing charges

The review aims to address concerns about increasing fees and the current inflexibility of these charges

Ofgem is nearing the completion of its consultation process on the review of energy standing charges.

The review, which encourages input from billpayers, charities and businesses, explores the structure of daily standing charges on energy bills and solicits opinions on potential changes.

On 16th November, Ofgem initiated the discussion, expressing its intention to reevaluate the current charging system.

This comes in response to concerns about increasing fees and the perceived lack of control customers have over reducing their payments.

The current model involves customers paying a fixed daily charge, covering the costs associated with connecting to an energy supply.

These charges vary based on geographical location, regardless of the energy consumed.

Previous reviews have revealed a complex system with winners and losers.

Ofgem acknowledges that eliminating the standing charge would require suppliers to find alternative means to cover their costs, likely resulting in higher prices per unit of power consumed.

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