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Price cap rise sparks call for standing charges change

Campaigners are calling on the government to change energy rules as the next Ofgem price cap announcement is expected on 23rd August.

The Warm This Winter campaign has suggested nine changes that could help lower energy bills, especially for those struggling to pay.

Key proposals include cutting standing charges, capping exit fees and improving how the energy industry is managed.

The standing charge is a daily fee for fixed costs like maintaining wires, pipes, and staff, regardless of energy use – it’s capped by the energy price cap, which limits how much suppliers can charge.

According to the campaign the proposed changes could save households up to £152 a year but would require new regulations and government support.

One proposal is to introduce a social tariff to help low income households.

Campaigners suggest that this plan is popular with the public and could be funded by profits from energy companies.

They are also worried about the sharp rise in exit fees over the past three years.

Fiona Waters, spokesperson for the Warm This Winter campaign, said: “The new government has inherited a nightmare set of rules that are clear hurdles to creating the fairer energy system that the public are crying out for.

“With energy bills forecast to increase again in October, this problem is only going to get worse if new ministers do not step in now.

“Now is the time to bring back fairness with urgent action to support struggling households through the next winter and a commitment to end profiteering by properly taxing the wider energy industry.”

Dylan Johnson, from Future Energy Associates which compiled the reports, added: “Ofgem must implement immediately actionable solutions and not shy away from making the key long-term decisions that can achieve a fairer, greener energy system.”

Energy Live News
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This article first appeared on Energy Live News, an award winning news service. Their mission is to give you balanced news, analysis, commentary of energy from their dedicated team of quality journalists and production staff.
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