Energy regulator Ofgem is considering changes to energy bills that would allow households to choose tariffs with lower standing charges, but experts warn teh move is unlikely to deliver notable savings and may even cause confusion for consumers.
The proposed changes come as millions of households prepare for another winter of high energy costs, with October’s price hike looming. Critics argue that simply shifting costs within the bill won’t address the core issue of affordability. “With October’s price hike just around the corner,lower standing charge tariffs will not help the millions of households bracing themselves for yet another winter of unaffordable energy bills,” said Ms Cooper,of Citizens Advice.
Concerns have also been raised that the introduction of more tariff options could further complicate the energy market for consumers.
Martin Lewis, founder of Money Saving Expert, described the plan as “disappointing” and “significantly watered down” from initial proposals. “I get more complaints about standing charges than anything else in energy bills,” he said. “I worry Ofgem has picked an easy route to appease suppliers’ concerns, that doesn’t help the most vulnerable.”
Lewis added,”I suspect if it goes ahead like this,not enough people will switch and they’ll say ‘it wasn’t worth it.'”
Energy UK, representing energy suppliers, questioned the value of the proposed changes, citing potential costs and disruption.Dhara Vyas of Energy UK stated, “It is hard to see how the move warranted the potential cost and disruption.”
“Ofgem admits [this] will only be temporary and merely move costs around on the bill, so delivering a limited benefit to customers,” Vyas explained.
The plans are now subject to a consultation period before a final decision is made by Ofgem.
