Energy and Utilities Alliance (EUA) has welcomed the news that Ofgem is planning to allow the price cap tariffs to increase to pay for the scrapping of energy standing charges.
Mike Foster, CEO of EUA, said: “We welcome the moves towards zero standing charges for gas and electricity bills. The current system penalises those that minimise their usage by not rewarding good behaviour, such as improving energy efficiency of their homes and using energy prudently.
“If the energy market is to work properly, then scrapping gas and electricity standing charges allows the price signal to function more effectively than if a large chunk of your bill is fixed.
“We acknowledge some vulnerable consumers are high users of energy, because of their circumstances. That’s why the consultation suggests they can stick with a standing charge if it suits them. But for the vast majority, we expect consumers to make the switch to pay only for the energy they use.”