Britain’s energy regulator, Ofgem, has proposed reforms aimed at helping customers with energy debts, which have reached nearly £4 billion. The new proposals suggest energy companies offer tariffs without standing charges and make debt assessment processes more consistent.
The cost of energy bills, which remain 40% higher than pre-crisis levels, continues to be a burden on many households, especially vulnerable ones. Ofgem’s reforms aim to standardize support for people struggling with energy debt and introduce practical assistance for those in significant difficulty.
One key proposal is for suppliers to offer tariffs that exclude standing charges, a daily fee added to energy bills regardless of usage. Consumer groups have criticized these charges, arguing they are unfair. Ofgem’s director general, Tim Jarvis, stated that the reforms would provide more choices for consumers, especially those who are financially stretched.
These changes are part of the government’s broader effort to lower domestic energy costs and improve living standards across the UK. Ofgem will consult on the proposals and expects standing charge-free tariffs to be available by next winter.