Requirement to offer lower standing charge tariffs
Setting a lower standing charge tariff requirement
Summary
We set out our approach to defining the requirement for energy suppliers to offer a lower standing charge.
Details
We have decided not to go ahead with introducing ‘zero standing charge tariffs’. Instead, we are proposing a tariff with a lower standing charge.
If we amend the Standard licence conditions, energy suppliers would be required to offer at least one tariff with a significantly reduced standing charge to all their customers.
We are proposing that suppliers should offer a tariff with a standing charge that is at least £150 below the price cap standing charge. This is the nil consumption level. We are also considering whether we should go further, for example by requiring a £200 reduction.
This approach would address consumer demand for lower standing charges and ensure energy suppliers can recover their costs efficiently.
Before you give us your views
Read the full details in the Setting a lower standing charge tariff requirement chapter of the consultation (PDF, opens in new window).