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Standing charges to rise for millions

Energy regulator Ofgem has confirmed average household energy bills will decrease by £238, but electricity standing charges will rise

Millions of households across the UK are set to face increased electricity standing charges, as energy regulator Ofgem announced changes to the price cap, which will come into effect from 1st April.

While the average household energy bill is expected to decrease by £238 to £1,690 annually, standing charges for direct debit payments will rise from £303 to £334 per year.

The new average rates for the three months starting 1st April indicate an increase in electricity standing charges to 60.10p per day from the current 53.35p.

Gas standing charges remain unchanged at 29.60p per day.

The rise in standing charges is attributed partly to electricity distribution costs, which have seen a standard inflationary increase.

Additionally, increased bad debt provisions, owing to financial struggles faced by many consumers, may have contributed to the rise, although it is yet to be confirmed if these provisions have been factored into the standing charges.

Furthermore, a portion of the increase in standing charges is linked to the equalisation of prepay and direct debit charges.

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