Fuel Bank Backs Ofgem Consultation on Standing Charges and Tackling Energy Debt

Ofgem will consult on introducing an option under the price cap to include zero standing charge tariffs alongside existing tariffs, offering consumers the ability to choose what is right for them.

Responding to the announcement, Matthew Cole, CEO of Fuel Bank Foundation, said: “We support Ofgem’s proposals to make standing charges fairer for consumers.

“However, while there is broad consensus within the energy industry that standing charges need to be reviewed, any changes that are made following the consultation need to be carefully considered so as not to negatively impact vulnerable customers.

“On the face of it, giving consumers a choice of tariffs to suit their own personal circumstances is a good thing, but we would caution that not all consumers, particularly those who are vulnerable, can make this choice for themselves and may end up choosing a tariff that’s more expensive.

“There is an expectation therefore on suppliers to provide more support and education for customers to ensure the standing charge they have opted for is the one that works best for them.

“Equally, there is growing expectation on charities and debt advice organisations to increase support to energy customers in debt, without any increase in funding. If they are to continue offering consumer advice on a widespread scale, a discussion needs to be had about how this is funded.

“We welcome Ofgem’s consultation to look into the issue of energy debt and how it is managed going forward.”