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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