Lower standing charge tariffs set to be available by end of January, says Ofgem
Millions can save money on energy bills under new plans
- Ofgem, the energy industry regulator, has confirmed plans requiring suppliers to offer at least one tariff with lower standing charges by the end of January.
- These new tariffs will allow households to pay standing charges as part of their unit rate, reducing the daily fixed amount, but will not necessarily lower overall energy bills.
- The regulator abandoned earlier proposals for tariffs with zero standing charges, citing concerns about unfairly impacting consumers with high energy needs.
- Ofgem is conducting a final consultation on the plans, aiming for a decision by the end of the year to implement the new tariffs across Britain.
- While welcomed as a "small step forward" by campaigners, Ofgem clarified that standing charges cannot be removed entirely, only reallocated, and this is a short-term measure ahead of broader reforms.