Displaying items by tag: Ofgem

Ofgem has announced plans to offer 'no standing charge' energy tariffs and provide debt relief for struggling households. The standing charge, a fixed daily fee averaging 92p, has risen significantly in recent years and disproportionately impacts low-energy users and prepayment meter customers. The new tariffs will eliminate these charges, though higher unit rates for gas and electricity may offset savings for higher energy users. Additionally, Ofgem is proposing debt relief measures, including partial or full debt write-offs and debt-matching schemes, where suppliers match customers' repayments to reduce arrears. With energy debt exceeding £3.8 billion and average arrears rising 37% in the past year, these changes aim to alleviate financial strain on vulnerable households. Funding for the initiatives will be spread across network charges and energy suppliers, with plans to implement zero-standing charge tariffs by next winter. Ofgem also encourages households to register for support programs like the Priority Services Register and contact suppliers early if facing energy debt.