Ofgem lower standing charges tariff consultation: ‘this complexity is being left at the feet of consumers’

Energy regulator Ofgem has launched a consultation on requirements for suppliers to offer a lower standing charge tariff. Under the plans, these tariffs would be available to customers in Great Britain by January 2026.

In response, National Energy Action Director of Policy Peter Smith says, ‘Given the public anxiety about standing charges, any progress in this area is positive, but it’s taken a long time to make even this modest step forward. Regardless, standing charges or unit charges recovered through the overall energy bills will remain high and even increase.

‘Ofgem’s proposals also won’t change the differences consumers pay depending on where they live in Great Britain. Nor will it change households on prepayment still being disproportionately impacted by how these fixed or higher unit charges are recovered if they fall into further difficulties paying their energy bills.

‘Much of this complexity is being left at the feet of consumers to work through. There is a big worry this could just cause even further disengagement or distrust in what is considered already a baffling market. Given that the main programmes that support energy advice have yet to be extended beyond March next year, the enhanced need for impartial and in-depth advice and support could create huge challenges.’

ENDS

Notes to editors

1. National Energy Action (NEA), is the national fuel poverty charity, working across England, Wales and Northern Ireland, to improve the lives of people in fuel poverty. We directly support people with energy and income maximisation advice, and we advocate on issues such as the current energy crisis and the need to improve the energy efficiency of our homes. See: www.nea.org.uk/. 
2. Consumer energy debt has reached £4.15 billion, three-quarters of which is arrears with no payment plan https://www.ofgem.gov.uk/data/debt-and-arrears-indicators

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