Money saving guru Martin Lewis has described charges which mean people are paying £300 before they’ve actually used any of the product as a ‘moral hazard’. Mr Lewis hit out over the high energy standing daily charges and said he believed they should be reduced.
They mean that people are paying around £300 per year - regardless of the prices of power, or whether that actually use it. He said on Twitter: “The high energy standing (daily) charges are a moral hazard and should be reduced. It is outrageous that people have to pay £300/yr just for the facility of having gas & electricity even if they use none.”
Mr Lewis spoke out as people from tomorrow will have a big reduction in their power bills when the energy price cap changes - meaning an average 17 per cent drop for most. However Mr Lewis pointed out that the standing charge remains the same, with the wholesale electricity prices down 10 per cent, and gas down 25 per cent.
