MPs new report recommendations

dave2319

As mentioned here the other day, a new report from a committee of MPs has called for standing charges to be replaced with a 'rising block' tariff, plus other measures such as the introduction of a social tariff.

What do you think the chances are of those recommendations being implemented? Is it just another report that could be ignored or is there a realistic chance of us seeing meaningful improvements in those areas? And when do you think they could happen?

MSE_Andrew

Hi Dave2319.

There has been a lot of discussion around standing charges this year as they’ve increased massively recently, which means cutting energy usage is less and less beneficial – counterproductive for saving money and for environmental targets.

Reducing standing charges is something Martin and MSE have campaigned for – you can see full info in Martin’s Why are standing charges so high? blog.

We ultimately don’t know how likely meaningful action on this is, that’s up to regulator Ofgem and the Government.

The main concern with reducing standing charges would mean shifting some of the burden onto the unit rates which could unfairly impact vulnerable high users, that need to use more due to a medical issue or disability. Of course, separate support for these households could help soften that impact.

Thanks

MSE Andrew

Andrew Capstick - MSE Energy Expert

This question and answer came about during the MSE Forum 'Ask An Expert' event. It won't be updated so may no longer be correct at time of reading. This info does not constitute financial advice: always do your own research on top to make sure it's right for your circumstances

Ask an Expert: Energy (Sep 2023)

Some useful MSE content mentioned above:

Martin Lewis: Why are energy standing charges so high? What can be done?