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To: The Rt Hon Kwasi Kwarteng MP, Secretary of State for Business, Energy and Industrial Strategy, Mr Martin Cave Chairman of GEMA, and Mr Jonathan Brearley, Chief Executive of Ofgem.

Tell Ofgem to abolish the standing charge imposed by UK energy suppliers

Tell Ofgem to abolish the standing charge imposed by UK energy suppliers

With the average annual domestic energy bill set to rise to more than £3700 by the summer of 2023, the less well of will be hardest hit. To give low users a fighting chance of staying out of fuel poverty, the removal of standing charges will reward low usage, which has the added benefit of being good for the environment.

While it is recognised that current energy prices are the result of international markets, and the fact that it is difficult to separate the 40% generated in this country from the 60% that is imported, a very reasonable step by regulators would be the removal of the standing charge. Therefore, in order to promote fairness, all payments would be based purely on usage – if you use nothing you pay nothing.

Why is this important?

Given the financial state of the average UK citizen it is very likely that predicted energy bills will rise beyond affordability for many. Having been induced to use less, the larger proportion of consumer’s bills will still mean making choices between paying the rent, buying food, and/or paying for other domestic outgoings for water and council tax.

Many of those most affected will be employed (given that employment figures are currently high), but working under reduced-hours contracts. For this reason, there are still many consumers living below the poverty line notwithstanding the current minimum wage. And given the current projection this poverty line is set to rise considerably to include a larger proportion of the populous. One way of mitigating the effects of volatility in the current energy market is to remove the standing charge.



2022-08-03 14:35:54 +0100

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