Richard Neudegg, director of regulation at Uswitch.com, comments: “The controversy of standing charges has been exacerbated in recent years - with so many households reverting to being on default tariffs where the standing charges are effectively set by Ofgem’s price cap.
“Under Ofgem’s price cap, standing charges have risen 43% since 2019[1] and disproportionately affect lower-usage households, as these fixed costs make up a higher proportion of their overall bill.
“On the January price cap, dual-fuel households on default tariffs will be paying £338 per year on average in standing charges.[2]
“The promise of more zero or low standing charge tariffs options by next winter could help bring more choice to the market, and might be a good choice for some lower consumption households. But consumers must beware that the trade-off for lower standing charges will be higher unit rates, so comparing options will be important.
“Consumers can take action now to reduce what they pay for their energy. There are a range of fixed deals on the market, which offer savings of up to £112 per year versus the January price cap for an average household, and often come with lower standing charges than the cap. [3]
“All of the top ten cheapest fixed deals currently on the market have standing charges which are on average lower than the ones set by the January price cap.[4]
“We welcome continued focus from the regulator to address the consumer energy debt. Practical steps to improve the support offered to customers in debt could make a difference, but ultimately these will be measured on whether the levels of debt consumers are facing comes down.”
For more information
Beverley Noble | Energy PR Manager
beverley.noble@rvu.co.uk
Twitter: @UswitchPR
Notes to editors
- ((31.66+60.99)-(26+27))/(31.66+60.99) *100 = 42.795% increase (Source: Ofgem)
- From 1 January - 31 March 2025: 60.97 pence daily standing charge for electricity, 31.65 pence daily standing charge (Source: Ofgem). (60.97+31.65)*365/100 = £338.06 per year for a dual-fuel household. (60.97)*365/100 = £222.54 per year for an electric-only household.
- Outfox the Market, 18-Month Fix'd Dual Dec24 v2.0 - ZERO EXIT FEES, £1,626 average bill size. Price correct as of 4pm on 11 December 2024 and based on suppliers which have updated Uswitch.com with their deals.
- Based on information providers by suppliers to Uswitch.com. Information correct as of 2pm on 11 December 2024.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to find their energy, broadband and mobile deals than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.