Major overhaul to standing charges could help SLASH energy bills


A major change in standing charge can help reduce energy bills.

Ofgem’s boss said this morning that the energy regulator will look to see if the standing charge can be reduced as energy bills rise.


There may be a massive change in the fixed chargescredit: getty

Energy Watchdog chief executive Jonathan Brearley said the charge will be reviewed as the energy price is due. increased to 2,800 pounds in October.

This means families can increase their bills by £830 more.

A standing charge is a cost automatically applied to your energy bills before using any gas or electricity.

It has jumped from 25p to 45p in a day.

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Beneficiaries can get all assistance from rent assistance to energy bill grants.

Meanwhile, gas prices have risen from 4p to 7p, and the standing charge has risen from 26p a day to 27p.

were bill payers Angry over hike in AprilAnd said they were confused about what the permanent charge actually covered.

But Mr Brearley told BBC Breakfast Offgame could reduce this fee – meaning customers would be paying less on their bills.

He said: “One of the things we are doing is looking at how this permanent charge forms.

“We’re looking at its components, potentially, if it can be reduced.”

He said Offgame is looking into how it can ensure homes are paying a “fair” price for their energy bills.

Fixed charges are a fixed cost so unfortunately you cannot reduce this part of your bill by using less energy.

Permanent charges cover the cost of running and maintaining the energy network, much like line rentals with landline phones.

It also covers the cost of failed energy firms and more than twenty have closed recently due to increased wholesale prices.

The amount charged varies across countries but energy price limits still apply.

Offgame said that as long as the bills do not exceed the average total amount, suppliers can set their own permanent charges and tariff rates.

This means that in the south of England there is often high standing fee as well as in remote parts of Scotland and Wales.

What if I’m already struggling with my energy bills?

Families are already struggling to cover the cost of their energy bills, so moving forward will only mean they need more support.

should be your first step Contact your energy supplier.

They may be able to change your payment plan or check whether you are eligible for their hardship fund.

For example, British Gas And Octopus The two have set up the fund to help customers struggling with their bills.

You should also check that you are getting all the benefits that you are entitled to.

use one online profit calculator To make sure you are not losing any extra cash.

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Similarly, you can search for grants Which can help you pay gas and electricity bills.

you will also be in line a £400 energy bill discount from October.

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