In a consultation announced today, the regulator has acknowledged that more supplier tariffs need to be offered with zero standing charges – allowing consumers to better manage their usage and bills.

Commenting on the announcement, Mike Foster CEO of EUA said:

“We welcome the moves towards zero standing charges for gas and electricity bills. The current system penalises those that minimise their usage by not rewarding good behaviour, such as improving energy efficiency of their homes and using energy prudently.

“If the energy market is to work properly, then scrapping gas and electricity standing charges allows the price signal to function more effectively than if a large chunk of your bill is fixed.

“We acknowledge some vulnerable consumers are high users of energy, because of their circumstances.  That’s why the consultation suggests they can stick with a standing charge if it suits them. But for the vast majority, we expect consumers to make the switch to pay only for the energy they use.”