Ofgem's Standing Charge Overhaul Sparks Warning of Backfiring Consequences for Customers

Energy Standing Charge Plans Could Backfire, MPs Told A plan by energy regulator Ofgem to overhaul standing charges has been met with skepticism by the UK's biggest suppliers, who warn it could make things worse for customers. Key Facts: Ofgem announced plans in September to require all suppliers in England, Scotland, and Wales to offer at least one tariff with lower standing charges. However, the chief executives of the UK's largest suppliers have questioned the outcome of this move, suggesting it may not address the root issue of unaffordable energy costs. Timeline: Ofgem announced its plans on September 14th. The Energy Security and Net Zero Committee heard evidence from the supplier bosses on [date]. Immediate Impact: The suppliers' concerns have sparked fears that Ofgem's plan could exacerbate the problem of unaffordable energy costs for some customers. Rachel Fletcher, director of regulation and economics at Octopus Energy, warned that the proposed changes "could make things worse". Background Context: Standing charges are a fixed daily or monthly fee added to energy bills, regardless of usage. Critics argue that these charges disproportionately affect low-income households. What Happens Next: The Energy Security and Net Zero Committee will continue to scrutinize Ofgem's plans, with further evidence sessions scheduled for [date]. The outcome of this review could have significant implications for the UK's energy market and consumers. *This story is developing. Information compiled from Bbc reporting.*