Energy firms are being ordered to offer household tariffs free of standing charges amid concerns that the current price structure for gas and electricity penalises the poorest customers.
Under plans set out by Ofgem, the energy regulator, suppliers will have to offer “zero standing charge” tariffs by next winter to address ballooning household energy debt.
Standing charges — a cost set by the supplier charged each day, even if you do not use any energy — hit low energy users disproportionately and have risen by 43 per cent since 2019. From January an average household using gas and electricity will pay standing charges of £338 a year.
Ofgem’s order follows a Times investigation that revealed how energy companies were force-fitting prepayment meters in the homes