Labour told slash brutal Standing Charges on energy bills by over £150

Campaigners are demanding a cut to sky high Standing Charges on energy bills and other drastic changes to help millions this winter.

Currently households are being charged an average of £334.08 a year in standing charges on gas and electricity before they turn on the heating or lights.

Critics says this should be slashed by 46 percent – £152 – to a fairer figure of £183.02.

They argue that this reduction, along with other key measures, is vital to ensure millions can afford to stay warm and keep the lights on this winter.

The energy tariff price cap is due to rise in October against the background of higher wholesale costs. At the same time, millions of pensioners will have the winter fuel payment, worth up to £10 million, removed following an announcement from the Chancellor Rachel Reeves this week.

Campaigners say ministers should send a clear signal that they are on the side of consumers by reviewing rules that are inflating bills.

Other measures include reducing exit fees on tariffs which can make it difficult and expensive to shop around for the best deal.

These fees to escape fixed rate energy tariffs have increased by 345 percent in the last three years with a number charging as much as £100.

Ministers are also under pressure to introduce a cheap social tariff for low income households, which would help prevent people from running up massive debts.

There are also questions about the huge profits being made by gas and electricity suppliers and generators on the back of the price surge triggered by Russia’s invasion of Ukraine.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said urgent action is needed to “reset Britain’s broken energy system so it is on the side of consumers”.

He said: “While these changes to regulation won’t be enough to resolve all the problems we see, it would signal a welcome change in direction.

“The new Government must work with Ofgem to earn the public’s trust by protecting vulnerable households, reducing energy debt, bringing in changes to energy meters, ramping up insulation programmes, reforming standing charges and ending energy industry profiteering.”

Fiona Waters, spokesperson for the Warm This Winter campaign, said: “The new government has inherited a nightmare set of rules that are clear hurdles to creating the fairer energy system that the public are crying out for.

“Just last week we saw five energy corporations who have made £240 billion since the start of the energy crisis, announce even more profits.

“With energy bills forecast to increase again in October, this problem is only going to get worse if new ministers do not step in now.

“Now is the time to bring back fairness with urgent action to support struggling households through the next winter and a commitment to end profiteering by properly taxing the wider energy industry.”

You May Also Like