A new consultation opened by the energy regulator Ofgem is proposing the introduction of energy tariffs with low or no standing charges as an option for all consumers.
Ofgem has published an update on its review of standing charges, after responses to its call for input painted a "stark picture" of users' dissatisfaction with the current system.
David Osmon, a former senior economist at Ofgem, has called on the UK government to reduce standing charges on prepayment meters (PPM) permanently by removing VAT from them.
Octopus Energy is reducing its standing charge for those on its variable tariff by 4% to provide additional support for consumers ahead of energy bills jumping in October.
