Money saving expert Martin Lewis is campaigning for the lowering or abolition of gas and electricity standing charges, which can be as high as £338 a year.
The energy regulator Ofgem announced in December 2024 that it wants consumers to have the option of low or no standing charges, but pay a higher rate per unit of gas or electricity used from winter 2025. Standing charges are a daily fee charged even if no energy is consumed. This is around 32p a day for gas and 61p for electricity. Martin Lewis says:
“Standing charges are a £338 a year poll tax on energy bills, a moral hazard disincentivising lower users from cutting their bills.”
If standing charges were cut for all consumers, this would benefit consumers who use less energy, but higher tariff rates would raise bills for high energy users.
Ofgem wants energy suppliers to offer a choice of either low standing charges but higher tariff rates, or lower tariff rates with additional standing charges.
Ofgem has also announced that it wants to tackle energy debt, as over £3 billion is owed to suppliers. It is not clear how these debts can be fully cleared. Ofgem wants energy suppliers to improve how they treat people who struggle to pay their energy bills by cooperating with debt advice organisations to find solutions.
An inefficient boiler uses more gas and increases energy bills. For those with gas boilers, an annual Xgas boiler service in Wrexham homes maintains energy efficiency and can keep bills as low as possible.
