Backlash over energy standing charges shake-up

Published On Feb 20, 2025, 7:05 AM

The article discusses criticism from charities and energy providers over Ofgem's proposed changes to standing charges on energy bills. These fixed daily charges, which have increased significantly since 2019, are perceived as unfair by many billpayers. Ofgem’s proposal involves offering a choice between tariffs with and without standing charges, which has been met with skepticism. Critics argue that the plans do not lower standing charges or address affordability effectively, potentially complicating billing further and putting vulnerable customers at risk of higher charges. Overall, the proposed plan is seen as a shift rather than a solution to the high cost of energy.

Stock Forecasts

EQT

Negative

The ongoing debates about energy tariffs and standing charges could impact energy companies negatively, especially if the regulatory changes do not support their pricing models. Additionally, concerns over consumer debt in the energy sector may hinder growth.

ICLN

Positive

Companies that are more aligned with renewable energy solutions and energy efficiency may see positive growth as consumers seek alternatives to high energy costs. Investments in energy-efficient technologies could benefit from changes in consumer behavior resulting from these concerns.

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