Ofgem Proposes 'No Standing Charge' Tariffs

Ofgem, the UK's energy regulator, has announced plans for energy suppliers to offer 'no standing charge' tariffs to provide consumers with more choice and alleviate financial strain. This move is part of a broader initiative to address the rising energy debt, which has reached £3.8 billion despite stabilizing energy prices. While some suppliers already offer low or zero-standing charge options, Ofgem aims to make this a standard offering under its price cap system. However, concerns remain that abolishing standing charges could disproportionately affect vulnerable consumers reliant on high energy usage for medical needs. In addition to tariff changes, Ofgem plans to introduce support schemes that could include debt write-offs and repayment matching to assist those with accrued energy debts. These changes are expected to potentially increase costs by up to £20 annually for households to cover implementation expenses.