Energy standing charges review prompts huge response

A call for views on standing charges by energy regulator Ofgem has received a huge response, reflecting customers' frustration over the fixed daily fee.

Ofgem said 20,000 people had been in touch before consultation closes later on Friday.

The regulator had said it wanted to open up debate over the charges, including opinions on how to change the system.

Questions have also been asked about customer service when bills are high.

Varying cost

Currently, energy customers pay the fixed daily charge covering the costs of connecting to a supply.

But there has been anger about increasing fees and customers' inability to reduce what they pay.

Charges vary depending on where customers live, but the amount of energy that they use is irrelevant for this part of a household bill.

In most areas, the charge - which is capped by the regulator - has doubled over the last two years. A typical household pays 53p a day for electricity and 30p a day for gas - adding an extra £300 to the total bill each year.

The money is also used to cover other costs, such as dealing with the failure of some suppliers.

• How much have energy bills gone up from January?

• Energy bills could rise to cover customers' debts

Billpayers, charities and businesses were urged to give their views on these charges, prompting a massive response.

"We know that with wider cost of living pressures, people are concerned about their bills so we will now use these responses to inform how we approach this complex issue. and set out next steps in due course," an Ofgem spokesman said.

Ofgem, and even some consumer groups, say simply shifting the fee on to usage charges may just penalise a different group of vulnerable customers.

However, Chris O'Shea, the chief executive of British Gas owner Centrica, said his company had called for such a move.

"We favour changing the unit rate so customers that use less, pay less," he told BBC Breakfast.

"The unit rate would have to go up to compensate for that, but it means those who use more pay more, those who use less would pay less."

Separately, consumer group Which? has raised concerns about some suppliers' customer service levels.

It said that high bills, and little opportunity for people to switch to a cheaper deal, meant that "good customer service is more important than ever". However, it said some needed to improve.

Energy UK, which represents energy suppliers, said this was a priority when demand on firms' call centres was steep.

"It is really important that [suppliers] continue to try to improve," said Dhara Vyas, the group's deputy chief executive.

"They have been putting in tens of millions of pounds into extra support for customers who need it most, training extra staff and trying to recruit more."

People can submit their views about standing charges by 17:00 GMT on Friday via email to [e-mail].

What can I do if I can't afford my energy bill?

• Check your direct debit: Your monthly payment is based on your estimated energy use for the year. Your supplier can reduce your bill if your actual use is less than the estimation.

• Pay what you can: If you can't meet your direct debit or quarterly payments, ask your supplier for an "able to pay plan" based on what you can afford.

• Claim what you are entitled to: Check you are claiming all the benefits you can. The independent MoneyHelper website has a useful guide.

Read more here