Standing charges: domestic retail options - Increasing consumer choice through tariff diversification - Ofgem

Increasing consumer choice through tariff diversification

Summary

This section considers how the range of standing charge and unit rate combinations across tariffs has changed over time and what, if any, interventions could result in consumers having access to a greater variety of tariff offerings.

What we want to do

We want to encourage energy suppliers to make more tariffs available with a range of standing charges.

Details

The response to our call for input made it clear that many consumers would like to see more tariffs with low or no standing charges.

There are some tariffs already available on the market with low or no standing charges. However, the number of customers on low or no standing charge tariffs have remained low over time.

There are no clear regulatory barriers for suppliers to offering low or no standing charge fixed term tariffs.

We welcome and encourage suppliers to make more tariffs available with a range of standing charges.

If energy suppliers do not start to increase the variety of standing charges tariffs, we would think about mandating energy suppliers to offer these tariffs to both gas and electricity consumers.

We welcome stakeholder views on what extra consumer protections would be needed to provide suppliers with greater flexibility and control over their cost recovery.

Before you give us your views

You’ll need to read the details in the Increasing consumer choice through tariff diversification chapter of the discussion paper (PDF, opens in separate tab).

5. Could mandating suppliers to have at least one low or no standing charge tariff available to customers help promote competition in this area of the market?

Yes No

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6. How could we create flexibility in how costs are recovered between the unit rate and standing charge without reducing the protection provided by the cap?

Please use this text box to suggest ways we could create flexibility in cost recovery without reducing protection provided by the cap.

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7. In exploring alternative approaches to price cap compliance, what, if any, safeguards would be needed to protect vulnerable consumers?

Please use this text box to give us your views on the safeguards needed to protect vulnerable customers.

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8. What are the key considerations we should take into account in developing options for smoothing spend for prepayment meter customers?

Please use this text box to suggest key considerations we should take into account in developing options for smoothing spend for prepayment meter customers.

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