Populo Volume 2 Issue 2

2022, par. 3). This is in comparison to “middle-income households

[who are] spending on average 6% of their incomes on energy

bills” (Anderson, 2022, par. 5).

2.1.4

Vulnerable low energy users are penalised by standing

charges, adding hundreds of pounds to annual bills despite any

precautionary efforts to reduce costs. In 2015 Ofgem allowed

British Gas to have a “standing charge rebate [… providing the

household] consume[d] less than 1,500kWh of gas over the

previous 12 months […] and [are] considered financially

vulnerable” (Barnes, 2015, p. 2). Showing a solution only indented

to help those proved, being key, financially vulnerable. However,

an abolishment of the standing tariff may not be inherently a good

thing for a majority of UK households.

2.2 The justification for allowing standing charges in the present-day

rests primarily on the argument its purpose is for:

2.2.1

Maintaining the connection between supply and

demand. Including any faults being fixed with no additional fee to

the local residences, as it has been covered by the standing charge.

These are duties the companies uphold through the guaranteed

income that standing charges provide, their removal would add

financial insecurity for these companies (Bridgeman & al, 2015).

2.2.2

The general cost of this maintenance will not vanish

but become included in the price per unit consumed by their

household. This benefits zero and low users however is detrimental

to low-income high consumers. As “all tariffs would be priced in

terms of one variable unit rate. This rate is likely to be higher than

it is now” (Bridgeman & al, 2015, p. 49). Making affordability of

energy less obtainable for larger families with low income for

example.

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