MSP welcomes energy regulator’s standing charge consultation
An MSP has welcomed a decision from the energy regulator to consult on introducing zero standing charges under the price cap.
Green MSP Ariane Burgess wrote to Ofgem earlier this year, highlighting the disproportionate effect charges have on people from rural areas.
The Highlands and Islands MSP said bringing a consultation to the public was a “significant shift” in energy policy.
“Much more must be done to help rural households who face the highest rates of fuel poverty,” Ms Burgess said.
Standing charges put hard working people off reducing their energy usage efficiently.
“The standing charges issue is fundamentally about fairness: there is no reason why energy bills for millions of poorer, low-income households should be proportionately more expensive than those of many larger and wealthier households,” she said.
“The government and Ofgem must work together to provide support for vulnerable customers who have high energy needs while enabling those who use less energy to avoid the moral hazard of an effective poll tax on energy use.”
Some suppliers already offer low- or no-standing charge tariffs, but they are not universal.
Ms Burgess added that more choice is needed for all consumers, including those in debt.