'Why can't you just cut Standing Charges?' – Martin Lewis puts your questions to regulator boss

Ildhund

I see that Mr Lewis suggested that special arrangements (i.e. reduced energy costs) should be made for those on the Priority Services Register (PSR). While there will be some overlap between those who are poor and those on the PSR, 'financial vulnerability' is not one of the primary eligibility criteria for registering. For example, wealthy parents of toddlers are legitimate PSR candidates, because a power outage could put young children at risk. It would make more sense to use the same (or similar) criteria as those used to establish eligibility for the Warm Home Discount. It's a wrong-headed suggestion IMNSHO.

Qyburn

Another ridiculous suggestion. You can be on the PSR simply by being 60 years old, irrespective of your means.

Ildhund

Qyburn said:

You can be on the PSR simply by being 60 years old, irrespective of your means.

The one I've signed up to specifies the criterion as 'being of pensionable age', a bit of a moveable feast these days. Perhaps they could devise a tortuous scheme like the one for Winter Fuel Payment, requiring an already struggling HMRC to shoulder the burden of clawing back funds from those subsequently perceived as undeserving. As Alec Issigonis allegedly once remarked, "A camel is a horse designed by a committee."

The_Green_Hornet

https://www.theguardian.com/uk-news/2025/nov/04/chancellor-considers-cut-green-levies-reduce-cost-of-energy-bills-rachel-reeves

dunstonh

Standing Charges – which you pay just for the facility of having gas and electricity, even if you don't use any – currently make up £300 of the average bill, penalising lower-use households and disincentivising people from cutting their energy usage. In the latest must-listen instalment of The Martin Lewis Podcast, Martin discusses the issue and what can be done about it with Ofgem boss Jonathan Brearley...

What a load of rubbish.

Its not about cutting energy use but making it less reliant on fossil fuels.    Those that have moved to heat pumps or electric based heating are typically higher users of electricity.   Those that have bought an EV draw more power than those that have not.

Also, many elderly and low income houses are on economy 7 heating or have landlords who have stuck electric heating in.    Reducing the standing charge and increasing the kWh cost would hurt those groups.

It would also favour the wealthier indviduals who have installed solar.   Which is somewhat perverse, given that the ability of the infrastructure to handle mini-exports has cost money but reducing or removing the standing charge would benefit them.

michaels

Is Martin planning to go into politics - his populist non-solutions would seem to suggest so

debitcardmayhem

michaels said:

Is Martin planning to go into politics - his populist non-solutions would seem to suggest so

Perhaps he’s a Reformed character?🤪

Scot_39

The govt has come up with new money - well taken more of our money - the additional £17 added to policy cost line in the cap - putting that line up by another 9% - by extending WHD to 2.7m more homes.

Not if only they had rebranded it the "reduced standing charge social tariff".

So rather than paying £150 - maybe offering £150/365 = 41p off of the electric standing charge for those now 6.1m iirc - perhaps we could stop wasting Ofgem's time on the "standing charge fixed costs" as a standing charge or a higher unit rate offset distraction.

And concentrated on some of the real problems facing our energy bills - the 1/2 hourly auction bid system and Net Zero network, balancing and renewables curtailment payment costs.

michaels

I wonder if we will see an announcement on VAT on fuel, zero standing charge or a social utility tariff in the budget?

MattMattMattUK

michaels said:

I wonder if we will see an announcement on VAT on fuel, zero standing charge or a social utility tariff in the budget?

I think the removal of VAT on domestic energy is pretty much guaranteed, stupid as that will be. No to the other two.