Ofgem plans zero standing charge tariffs by winter 2025

Ofgem is consulting on new energy tariffs that would allow customers to choose low or zero standing charge options, aiming for implementation by winter 2025. Standing charges, which currently add an average of £338 to annual energy bills, are seen as unfair by many, particularly for low-energy users. The proposed tariffs could shift costs from standing charges to unit rates, potentially benefiting low-energy households but raising expenses for high-energy users. Ofgem is considering various pricing structures, including single unit rates and block tariffs, to offer more flexibility while protecting vulnerable consumers. The consultation will run until March 2025, aligning with concerns over rising energy costs expected in April. Energy experts, including Martin Lewis, have welcomed these plans as a necessary step towards providing more equitable billing options for consumers.