Stir allegations of curbing energy

Charity and energy providers have criticized plans for changing the way they change allegations of standing on bills.

All families pay a fixed daily fee covering the cost of connecting with gas and power supply.

Many bilperiors consider them inappropriate because they have no control as to how much a fee is charged, which promotes the review by the energy regulator.

But the plan to offer the choice of tariffs of the regulator has been described as complicated and incorrect.

When OFGEM asked for public views on permanent allegations, it received an unprecedented response to 30,000 submissions.

The majority were against standing fees – fixed fees, usually more than £ 300 per year, which are paid despite using energy houses.

Under the price cap of Ofgem, permanent fees have increased by 43% since 2019.

The regulator said that these fees still need to be paid, but announced a plan to offer A in December No permanent charge solution,

The proposal of Orase is to force energy firms to make a dual pricing proposal – with a permanent fee, or without. The tariff will have a higher price for each unit of energy without a permanent fee. Both will be under the current price cap system.

Now, as it launches One month consultation on its proposalsIt is explained that no permanent charge option can work:

• Each unit of energy
• Charging in the block – so customers pay a high unit rate until a certain amount of energy is not used, followed by a low price
• A block system in which customers pay low unit rates until a certain amount of energy is used, and then a high price

Options give customers “choice and more control” how they choose to pay for their gas and electricity, according to Charlotte Frame, from ofm.

“We are closely looking at how these tariffs will work in behavior, but everyone will need to consider carefully which option meets their needs,” he said.

But a string of charity, and the trade bodies of energy suppliers have criticized plans, who have failed to address the basic cost of standing fees and fail to create a much more complex picture for billperes.

Concerns about proposals are included:

• Failure to reduce permanent allegations to make them more economical – plans transfer them to another part of the bill
• Concern that weak customers will inadvertently make wrong choice, which means they will pay more for their gas and electricity.
• There is no change in postcode lottery element of permanent fee, where customers live in the country, where they live, pay separate permanent fees on the basis of where they live.
• Complications were added to the billing system, when the price cap was to act as a backstop to avoid customers that do not close the tariff.

The campaign group fuel poverty from poverty said, “The proposal of the offgam is more to hide the allegations of standing within the unit rates, even energy firms are allowed to charge more for the first units of energy. , Which is completely opposite that we really need, “Jonathan Bean said, action from the campaign group fuel poverty.

Peter Smith, from Charity National Energy Action, said that this system will still affect unfair and weakest people.

“We are particularly worried that pre-paid meter customers can be abandoned rapidly ineffective allegations, which will need to be fully paid for the lights or before running a hot bath for your children,” he said .

Billpers, charity and suppliers say that proposals also fail to deal with high cost of energy.

The seventy-year-old Betty, who participated in a knitting group in a community center in Isington, said: “This is too much. You turn off your heating and you are cold but permanent fees are still there.”

“When I recently received my bill, it was £ 300 and we are just two pensioners. It’s too much. You worry about it. It’s disappointing.”

And the business bodies of suppliers, Energy UK, agree that the overall cost must be central for the attention of the regulator.

Customers are collectively making 3.8BN pounds in loans to suppliers.

Chief Executive Officer, Dhara Vyas said, “We are currently at the record levels of debt. We have a lot of concerns about the strength and I do not think the standing charge proposal and the new price cap is a way to deal with those big concerns.” Energy of Britain.