Ofgem opens call for views on Standing Charges
For the first time since the energy crisis, standing charges will be looked at by the regulator.
Ofgem has launched a call for input on standing charges, to help inform future policy changes. Energy bill standing charges have not been reviewed since the energy crisis and Ofgem is now looking at how standing charges can be potentially changed to spread them fairly across consumers.
Standing charges are the fixed component of energy bills and electricity standing charges have increased significantly since 2021, putting increased pressure on many households. The call for input looks at the potential impacts and trade-offs of lowering standing charges at the expense of increasing unit rates, and asks for feedback on how more equitable outcomes can be secured. Questions include how vulnerable customers can be identified and supported, and what impact standing charges have on customer behaviour.
A re-evaluation of standing charges was included as a recommendation in the RIHAF-supported (Rural and Islands Housing Association Forum) report A Perfect Storm. With energy bills remaining a real concern for tenants and social landlords, it’s encouraging that standing charges are now being looked at.
The call for input will close on 19 January 2024 and will be used to inform future policy changes. If you have any questions, or would like to feed into the SFHA response, please contact Eli Harji (eharji@sfha.co.uk)