“It’s absurd that standing charges are such a large part of bill. The whole way that energy is purchased and passed to customers is absurd” Lived Experience focus group participant, April 2023.
Since 2021 standing charges for domestic electricity customers have increased significantly. For people who pay for their electricity bills by direct debit, they have more than doubled from £86 to £186 per annum on average between 2021 and 2023.
In this consultation, Ofgem has asked for input in response to concerns about the high level of standing charges.
Our Response
We would like to see standing charges reduced and the fixed costs of the energy system recovered in a more progressive way. However, we recognise that some low-income groups would be adversely affected by such a change if not accompanied by other measures.
In addition to this, we want Ofgem to look at addressing standing charges that accrue when people on low incomes go off supply to save money.
Our full consultation response notes in further detail our policy asks.
