One of the largest providers in Britain urged Tuesday that the energy watchdog should reduce standing costs.
Greg Jackson, CEO of Octopus Energy, said that consumers could not comprehend why standing charges, the portion of a bill they must pay regardless of how much energy is consumed, were so expensive.
For consumers whose standing charges are impacted by the price limit established by the regulator Ofgem, Octopus will reduce them by 4%. Customers want to see standing fees reduced, according to Mr. Jackson. It may be led by an octopus. I’m hoping Ofgem does so.
Standing fees are harmful to users with low energy. The motivation to save energy is diminished if you cut use since you will still be subject to standing costs. And this winter, preserving energy must be the most important thing.
‘We should address this with the same urgency as the vaccine during the pandemic,’ he said, adding that although the government was entitled to assist people with their energy costs, it required a strategy for the future. A wind farm may be built in less than a year, but it may take seven years on average to get planning clearance and grid connections.
A recent consultation by Ofgem focused on reforms that would shift a portion of the standing fee to the price of power per unit.
According to the regulator, the consultation revealed that it will disproportionately affect some of the most disadvantaged people who find it difficult to cut down on their energy consumption.
The main issue at hand, according to Mr. Jackson, is how to resolve it as a country without permanently putting off paying our energy bills.
“I believe it is completely appropriate that the Government has implemented a plan of this magnitude to assist in absorbing what is occurring in the global gas market as a result of the conflict in Ukraine.”
What we need right now is an escape ramp, which can be achieved via improved energy security, market reform, and energy efficiency.
He continued by saying that simply modifying boiler flow temperatures, many homes may reduce their gas costs by 5% to 10% “without sacrificing comfort.”