Abolish standing charges on energy bills, say industry bosses

Concerns have been raised that standing charges penalise consumers who try to keep their energy bills under control The boss of British Gas owner Centrica said on Friday that the system penalises those who try to keep their energy bills under control by reducing how much gas and electricity they use.

It could mean a household which only uses gas for heating their home, and not for hot water or cooking, will still be charged during the summer months when their heating is off. “I know from conversations with prepayment customers that the standing charge can see them unknowingly build up debts over the warmer summer months.”

Greg Jackson, chief executive of British Gas’s rival Octopus Energy, also aimed criticism at the standing charge on Friday.“Octopus charges 4-5% below the price cap, but it’s almost impossible to go lower because of regulation.This would mean that instead of a standing charge, the cost for every unit of gas or electricity that someone uses would increase. That would give people more control over their bills.

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