All energy suppliers to offer lower permanent load rates by January, regulator’s plans | Money news Aitrend

All energy suppliers of households in Great Britain should introduce at least a lower permanent load rate by the end of January, according to the plans set out by the industry regulator.

Ofgem, who envisages complaints that energy Users are unjustly penalized by costs, says it aims to give consumers more choices.

But he admitted that this decision was unlikely to reduce global invoices, because a reduction in permanent charges would probably be reflected in higher loads for the energy units used.

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Standing costs are fixed daily costs added to the unit prices that households pay for gas and electricity.

They are designed to cover the costs of connection to the energy system and investment in new infrastructure.

This last element is cited as a growing threat to the bill levels, given the need to prepare the electricity network for the future of green energy required by the government.

The OFGEM has abandoned the initial plans that could have seen the costs entirely abandoned for certain energy transactions, in exchange for customers paying for higher unit prices.

Tim Jarvis, director general of the OFGEM markets, said: “We listened to thousands of consumers who wanted to see changes to the standing accusation and measures.

“We have carefully thought about how we can offer more choices on how they pay these fixed costs, but we have taken care to make sure not to worsen certain customers.

“After examining all the options at our disposal, we think that the right way to follow is to demand that all the main suppliers offer at least one price with a lower load.

“This will offer the choice we know that customers want, without having a harmful impact on customers who have high energy needs.”

But he added: “We cannot delete these costs, we can only move the costs.

“These changes would give households the choice they have requested, but it is important that everyone carefully considers what suits them, because these prices are probably not likely to reduce invoices by themselves.”

A final decision is due by the end of the year and could be introduced at the end of January.

It is described by the regulator as a short -term measure as a review is carried out on the best way to pay the necessary grid upgrades, including storage.

This decision has been announced when about 34 million households are preparing for a 2% increase in the energy price ceiling From October 1.

The 20 million on a fixed rate rate will not be affected by the change.

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While large gas costs have greatly increased invoices since the invasion of Ukraine by Russia in 2022, the costs of government policy constitute a greater proportion of invoices for households and businesses.

THE Extension of the warm delivery of the house was the main factor behind the increase in the October ceiling.

Emily Seymour, which one? The editor -in -chief of energy, said about the permanent load proposal: “For most of us, the energy unit rates will constitute the majority of our invoice and the permanent costs will be a low proportion of the total.

“But for very low energy users, daily standing costs will constitute a larger quantity of your bill and you could save money with one of these new prices, as you will pay a lower standing load every day.

“To determine what type of energy rate is best suited to them, people should examine their annual energy consumption to see to what extent it is made up of standing costs and how much costs the costs of the energy unit to see if their use is low enough to benefit from these new prices.”