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Daily Record
Daily Record
National
Record View

Daily standing charge for consumers obvious rip-off and it must end

Amid all the injustices surfacing with the price rises in the energy market, the daily standing charge for consumers sticks out as an obvious rip-off.

The levy for being simply connected to gas and electricity supplies is applied daily and is charged regardless of how much energy the customer uses.

Vulnerable customers on prepayment meters, or those who pay their bills by cheque or cash rather than direct debit, pay the highest standing charges.

They are also the least likely to have switched providers in the past and so have historically paid the highest rate for their light and heat.

Why Ofgem has decided to make the poorest customers pay for bad practice in the industry is an open question that must be addressed in a shake-up of the regulator and its powers.

Right now, those consumers on pre-payment meters who have fallen behind with their bills have to clear their standing charges before they begin paying for fuel they cannot afford.

The results are predictable and inevitable as the mounting daily costs lead to effective self-disconnection.

This cannot be tolerated by regulators or governments in Edinburgh or London.

The sweep of a pen could get rid of standing charges and redistribute the cost of supply to either those who can afford it or be taken out of the profits of the power companies.

The fees are an open injustice and their application must be urgently reversed.

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