People can submit their views on standing charges to Ofgem until September 20, 2024.
The average household energy bill is set to rise by £149 from October after Ofgem confirmed last week that it was increasing the price cap by 10 per cent from the current £1,568 to £1,717. It’s crucial to remember that the price cap does not limit a household's total bills, people still pay for each unit of gas and electricity they use.
Review of standing charges Last year Ofgem started a review of standing charges which began with an online consultation that received more than 30,000 responses from customers, consumer groups, charities and others. Top Money Stories Today Ofgem explained: “The options in the paper could reduce the standing charge by between £20 and £100 per year by transferring parts of these fixed supplier costs to the unit rate .
The options paper also sets out long-term considerations relating to the assignment of network costs, as a part of a broader review of how electricity and gas system costs are recovered from users.
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