Money-saving expert Martin Lewis has welcomed Ofgem’s plans to introduce energy tariffs with low or no standing charges but warns a key flaw could leave vulnerable households missing out.
“This is progress,” said Lewis. “Standing charges are by far the most complained-about part of an energy bill. It costs in excess of £300 a year just to have the facility of gas and electricity, even if you don’t use any.”
Under Ofgem’s proposal, suppliers would have to offer a tariff where standing charges are scrapped or significantly reduced, shifting costs onto the unit rate instead. While this could benefit low energy users, Lewis sees a critical issue: “To get it, people have to opt in.”
The energy price cap is meant to protect those who don’t engage with the market, yet those very people—often the most vulnerable—could be the ones who need these tariffs the most. “There’s a risk many vulnerable lower users may miss out,” he said, calling for firms to move eligible households onto the new tariff by default, with an option to opt out.
Meanwhile, Energy UK, which represents suppliers, has raised concerns about the complexity of the plan. CEO Dhara Vyas said, “Customers would have to make an active choice about which price cap tariff they should be on. We are concerned that it will be very hard to avoid some households… paying the price by ending up on the wrong tariff.”
With a consultation now open, the debate is heating up over whether this shake-up will truly help those who need it most.
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