Populo Volume 2 Issue 2

standard addition for energy bills. However, the argument for its

abolishment falls under these general categories:

2.1.1

It could be argued that standing charges as a concept

is outdated, and the recouperation of cost for suppliers should be

gained from traditional bills, as stated from the Energy Security

and Net Zero Committee [ESNZ] “Ofgem explained that around

50% is for operational costs” (2023, p. 11), and therefore should be

included in one bill. Its elimination could improve the ease in

comparing energy bill prices for consumers, ensuring one figure for

price comparison “mak[ing] tariffs easier to compare” (Bridgeman,

White, Asher, Redgrove, 2015, p. 7).

2.1.2

The idea that standing charges are based on

geographical location and do not factor in localised incomes to

adjust rates, was presented by ESNZ explaining that they

inadvertently impact vulnerable regions (2023).

2.1.3

Non-users should not have to pay towards a service

they never intend to use; In a letter by Ofgem’s Associate Partner

Neil Barnes, he writes that officially there are at “least 4,500

customers who are considered as vulnerable with zero gas usage”

(2014, p. 7), and argues that the standing tariff system is

detrimental to their livelihoods. In this same letter he praises

companies who offer removal from their grid and states that for

those who do not consume gas and wish to withdraw their

connection, “should not have to pay for the removal of their meter,

should this be appropriate” (Barnes, 2014, p. 1). These non-using

households are typically of lower income, as the Joseph Rowntree

Foundation found that “households on low incomes will be

spending on average 18% of their income after housing costs on

energy bills after [as per the data of 2019-2020 period]” (Anderson,

54

Made with FlippingBook HTML5