Time is running out to take action on standing charges

There’s less than 24 hours left to respond to energy regulator Ofgem’s latest consultation on unfair standing charges on energy bills.

Campaign group Fuel Poverty Action is urging the public to take action and call on it to finally scrap the unjust flat-rate levy. This is because, despite Ofgem’s warm words on a “zero standing charge option” – that’s not at all what the energy regulator is actually putting forward.

Ofgem standing charges: consultation set to close soon

As the Canary previously reported, Ofgem is currently running a consultation on the standing charge it applies to people’s energy bills.

Ofgem explains that this is a cost:

that is included in your electricity and gas bill. It is also included in the energy price cap.

Your energy supplier will charge you a standing charge cost each day, even if you do not use any energy on that day. The amount you pay will depend on your supplier, how you pay for your energy and where you live within England, Scotland or Wales.

However, the standing charge is an extremely unfair flat-rate levy on customers, disproportionately impacting the poorest households. Crucially, the charge is cementing fuel poverty.

It’s why many people think Ofgem should abolish the standing charge altogether – and have demanded it do so in a number of previous consultations.

The ‘strength of feeling’ against cruel standing charges

Since late 2023, Ofgem has been consulting on these. Over 30,000 members of the public responded to its first consultation, which the regulator itself acknowledged:

demonstrated the strength of feeling among the public for change

On top of this, in September 2024, more than 20,000 people again flooded Ofgem’s inbox calling for change on the standing charge component of consumer energy bills.

Crucially, prominent among these changes was for Ofgem to completely scrap the standing charges. Instead, respondents said it should shift:

these costs to energy suppliers to absorb using profits

Now, this is exactly what campaign group Fuel Poverty Action is asking it to do – and wants to public to join them in demanding.

The regulator is once again consulting on standing charges.

It has put forward an alternative proposal which it’s calling a “zero standing charge energy price cap variant”. However, the name is deceiving, because it amounts to little more than moving money around. In reality, it’s only offering to shift this cost onto the unit price of customers’ bills – so in effect, the standing charge will still exist.

Third time’s the charm?

So Fuel Poverty Action has put together a template letter for people to fill out and send to Ofgem in response to its latest consultation. However, Ofgem is closing its consultation on 20 March – so people will have to hurry to respond.

And notably, it sets out how Ofgem can do-away with standing charges and indeed force profiteering energy companies to shoulder the costs. Notably, it lays out that the energy system could do this with a Rising Block Tariff in the form of its Energy For All proposal. This would:

everyone a share of the free and cheap renewable energy we generate.

And crucially, this would be funded by:

the £billions in excess profits, subsidies and costs of energy firms.

So now, you can join the campaign group in telling Ofgem that there is a better way forward than its sham “zero standing charge option”.

Fuel Poverty Action has pointed out to supporters that their:

record-breaking response to Ofgem’s last two consultations on energy bill standing charges helped to force Ofgem and Government to agree to reform the standing charge.

There’s still time to add your letter to the tens of thousands of people holding the regulator to account. And maybe, third time might actually be the charm.

You can use and adapt Fuel Poverty Action’s letter here to respond to the consultation. There’s no time to waste.

Featured image via the Canary