Thousands of households whose fixed-price energy contracts are about to expire may be in for an unpleasant surprise. Not only will they pay more for their energy consumption when they are switched to standard variable tariffs, they will face daily standing-charge increases of up to 100%, whether or not they turn on their radiators.
Standing charges are a daily fee applied to gas and electricity bills regardless of whether customers have used any energy. The levy pays for network, supply and distribution costs across the sector and, since last year, has been increased to protect customers whose supplier has ceased trading.
