Energy Suppliers to Offer Low-Cost Deals, But Savings May Be Elusive for Households

Breaking News: Households to be Offered Energy Bill Changes, But Savings Unlikely As of January 2023, every household in England, Scotland, and Wales will be offered a low standing charge deal by energy suppliers, but the overall cost of energy bills is unlikely to decrease. According to Ofgem, all suppliers will provide at least one tariff with lower standing charges, which cover costs such as transporting energy and maintaining the supply network. Timeline: By January 2023, households will be offered low standing charge deals by energy suppliers. From October 1st, standing charges for electricity and gas have been set at 53.68p per day and 34.03p per day respectively for direct debit payers. Immediate Impact and Response: Consumer champion Martin Lewis has described the policy as "disappointing", while charities warn that it does not address the issue of high energy bills. The changes are unlikely to lead to significant savings, with many households still facing high costs. Background Context: Standing charges account for a portion of household energy bills, covering costs such as transporting energy and maintaining the supply network. These fees vary depending on location, with some areas in North Wales and Merseyside facing higher charges. What Happens Next: Households are advised to review their energy tariffs and consider whether they can benefit from lower standing charge deals. However, it is essential for consumers to understand that these changes may not lead to significant savings. As the energy market continues to evolve, households will need to stay informed about the latest developments and make informed decisions about their energy usage. *This story is developing. Information compiled from Bbc reporting.*