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Home » Ofgem reveals “Low or No Landing Charge” energy tariff plans to reduce bills
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Ofgem reveals “Low or No Landing Charge” energy tariff plans to reduce bills

adminBy adminFebruary 20, 2025No Comments3 Mins Read0 Views
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Regardless of how much energy a customer uses, standing fees apply every day, and many campaigners say it will have more impact on vulnerable customers.

Under a plan from the regulator, energy suppliers can instead pay the costs as part of the unit fee, so that the customer can instead pay the costs as part of the unit fee. It will become.

Ofgem said he is consulting about bringing options under the price cap that covers what is called zero-standing fee duties.

Watchdog said it hopes tariffs will be available in time for the winter of 2025.

Regardless of the amount of energy used by customers, residency fees apply daily and are used to cover the costs of supplying energy to homes and businesses.

It also covers the costs of building new network infrastructures and maintaining power when energy suppliers become busts.

But campaigners say they are unfair as everyone pays the same rate. This means that it makes up a much higher percentage of bills for people using less energy.

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“We’ve seen a lot of effort and we’ve seen it,” said Charlotte Friel, director of retail pricing and systems at Ofgem.

“But we are vulnerable, including people who rely on home equipment and low-income families, and those who are not insulated if these costs are added to the unit rate of everyone. High energy users know that disproportionately suffer.

“That’s why we are planning to have a better choice of ways to choose to pay for gas or electricity for our customers.

“We are carefully searching for how these tariffs actually work, but everyone needs to carefully consider which options are best for their needs.

“The costs included in the standing fees have to be paid in the end. But they may not save everyone, but they give people the option and make their bills stronger. I’ll control it.”

The talks come after Ed Miliband Energy Secretary urged Gem to round out the rising costs.

Recent forecasts show that even if most people’s bills drop due to low usage, the amount people pay per unit of electricity is set to rise again in April. Masu.

Martin Lewis, founder of MoneySavingExpert.com, said: Staff fees are the most complaining part of the energy bill.

“Even if you don’t use it, it costs more than £300 a year just to have a gas and electricity facility.

“They are moral hazards that prevent users from cutting their bills lower, leaving many elderly people who still use gas in the winter, but pay it every day in the summer. .”

He said Ofgem should use an opt-out mechanism to power vulnerable customers who don’t use much power for “low or no units” tariffs by default, so that people don’t miss out on savings. I made it.

Energy UK is a group representing energy companies such as British Gas and Octopus, which has strengthened policy concerns.

Chief Executive Dhara Vyas said the plan “increases challenges and risks” related to the utility’s advance purchasing of energy.

And it could increase “complexity” for consumers, she added.



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