Government energy regulator Ofgem has proposed that energy suppliers provide tariffs either with low or no standing charges. In doing so, this would enable customers to make payment via the unit rate, increasing payment flexibility.

Ofgem intends for such tariffs to become available from winter 2025/2026. All the same, charities and energy providers have been critical of the Ofgem’s plans.

At the moment, standing charges apply to fixed costs relating to energy delivery, upgrading infrastructure and necessary maintenance.

While consumer input (as part of Ofgem consultation) featured plenty of support for removing standing charges, the government regulator has determined that, as opposed to removing costs, they can be shifted. This would then see unit rates go up as part of zero standing charge tariffs.

Charities, consumer groups and energy suppliers have until March 20th to submit their input as part of Ofgem’s consultation. This is with Ofgem also looking into minimum use requirements as part of a guarantee of essential costs being fairly distributed.