Households that use less electricity and gas are to have their energy bills cut under new plans to reduce fixed-rate charges.
Ed Miliband, the energy secretary, is to hold talks with the energy regulator Ofgem and call on it to reduce the standing charges paid by consumers before they even use any energy.
Standing charges for domestic electricity customers have increased significantly since 2021. For a customer who pays their electricity bills by direct debit, they have more than doubled from £86 per year to £186 per year on average.
The move would mean a greater proportion of bills are made up of the unit cost of electricity, increasing the charges for households that use more power.
Miliband believes the move will help poorer households,