Martin Lewis has explained the 'frustrating' reason energy billpayers are not likely to see standing charges fall anytime soon.
Mr Lewis said to fix the problem, the government would have to provide targeted support to those who would suffer from the higher unit rates. But with Ofgem unable to control that aspect of the situation, the regulator is unlikely to decide to make the change. Standing charges cover an energy supplier’s fixed costs of providing gas and electricity, regardless of how much energy a household uses. The money goes towards providing and maintaining the wires, pipes and cables that deliver power to a customer’s door, as well as the staffing and building costs required for the energy business to function.
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