At the Centre for Sustainable Energy (CSE) we’ve responded to the Ofgem’s Standing charges: domestic retail options consultation advocating for substantial reforms to tackle energy affordability and support those most vulnerable to fuel poverty.

In our response, we recommend that Ofgem reduces standing charges by a minimum of £100, with a long-term goal of a reduction of £150 to £200. This would bring standing charges down to around £100, similar to pre-2019 levels.

We support the move to reform standing charges and tackle energy affordability, particularly for those who are struggling the most and at highest risk from the ill effects of living in cold, damp homes.

Ian Preston, CSE director of development and external affairs

Our response is informed by our extensive experience supporting thousands of people in fuel poverty each year, as well as our research on the path to net zero and ending fuel poverty.

Key recommendations from our response include:

1. Extending the Warm Homes Discount (WHD) payment to £300 for those on multi-rate tariffs or with medical needs for electricity.
2. Extending the existing WHD payment of £150 to people claiming disability benefits.
3. Implementing a social tariff to protect vulnerable consumers.

We also call on Ofgem to conduct a review of supplier pricing for multi-rate tariffs and a comprehensive examination of each aspect of standing charges, including network costs, supplier profits and policy costs.

Our response emphasises the need for additional protections for households with high electricity consumption, recognising potential unintended consequences of reducing standing charges for these consumers.

Our response aligns with overwhelming public sentiment. Ninety percent of the 30,000 individuals who responded to the government’s call for evidence on standing charges say that standing charges are unfair, with almost two-thirds calling for their abolition.