HARD-PRESSED households must be helped with their bills by lowering gas and electric standing charges costing around £300 a year, Ministers say.
Energy Secretary Claire Coutinho has written to regulator Ofgem demanding a lower rate to the daily fixed charge.
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The average standing charge cap is 53p per day for electricity and 30p for gas – whether or not homes use the utility that day.
The call from the government comes as the watchdog considers changes to the levy and alternatives after input from charities and consumer groups.
In a letter, Ms Coutinho says: “There is more to do to tackle the issue of standing charges rising significantly.
“At a time when energy bills are still higher than before Russia’s invasion of Ukraine, it is crucial that customers’ bills and standing charges are kept as low as possible”.
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The Energy Security Secretary says that increases in the rate since October 2021 are hitting “vulnerable households and those in rural communities” harder.
She calls on Ofgem to help suppliers offer consumers lower standing charges.
The fee covers the fixed costs from energy suppliers for providing gas and electricity to homes. It also covers the upkeep of wires, cables and pipes.
Energy suppliers are under no obligation to impose the rate and can charge a lower rate set out by the cap.
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Financial guru Martin Lewis told his podcast: “I have long campaigned about the moral hazard of this poll tax of paying well over £300 a year just for having the facility of having gas and electricity, which means lower users get relatively less gain from cutting their use.”
What is the energy price cap and what does it mean for me? (1)
