The energy regulator has put forward proposals to lower domestic standing charges - which could see Brits save £20 to £100 over a typical year. However, the clock is ticking
Ofgem, the energy regulator, has unveiled plans that could potentially reduce energy bills by up to £100. The proposals aim to manage the costs of standing charges, which are mandatory payments included in energy bills regardless of gas and electricity usage.
The regulator initiated a review of standing charges last year, beginning with an online consultation that garnered over 30,000 responses from customers, consumer groups, charities, and others. Ofgem has now released an options paper detailing potential methods to decrease standing charges for households and is seeking feedback from bill payers.
Ofgem has outlined potential changes that could see the standing charge reduced by between £20 and £100 annually, by shifting parts of these fixed supplier costs to the unit rate. However, they acknowledged that such changes could impact individuals who are unable to safely reduce their energy usage due to factors such as reliance on life-saving medical equipment or living in poorly insulated housing, reports the Mirror.
Jonathan Brearley, Ofgem's chief executive, commented on the situation: "We know that this rise in the price cap is going to be extremely difficult for many households. Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support."
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