Energy firm OVO joins new calls to scrap daily standing charges for all vulnerable households

dailyrecord.co.uk:

Energy firm OVO has joined calls for energy standing charges to be abolished for vulnerable households as it confirmed it will not be passing on the latest increase on October 1 when the new price cap comes into effect.

OVO chief executive Raman Bhatia warned that households were facing a prolonged period of high prices compounded by wider cost of living pressures that would leave millions struggling unless urgent action was taken.The energy provider is calling for a social tariff to be in place by next winter, targeted at those customers who are the most financially vulnerable, and for the standing charge to be scrapped this winter for consumers who need support in the meantime.

The standing charge is a fixed amount of around £303 a year that people pay on their energy bill which does not change based on usage.Ofgem's recent announcement that it was lowering the energy price cap by around £150 from October 1 also included details that it was allowing standing charges to rise from 82p a day to 83p.

Ovo said it would not be passing on the increase to customers.The standing charge, which has risen from 74p a year ago, is used to pay for many things, including the upkeep of the electricity and gas grids.