Fuel poverty can be ended by resetting energy crisis debts
Today’s decision by Ofgem to consult on introducing zero standing charge tariffs under the price cap is a step in the right direction for ending fuel poverty in rural households, says Green Highlands and Islands MSP Ariane Burgess, who has consistently advocated for this change in policy.
A standing charge on energy bills is a fixed daily amount paid for energy whether it is used or not, similar to a line rental, to cover the charge to suppliers for providing gas or electricity to your household. Rural households across Scotland are disproportionately impacted by these tariffs as well as those who are most vulnerable to fuel poverty.
Ms Burgess said:
“Standing charges are a disincentive to everyone working hard to reduce their usage through energy efficiency. There is no reason why energy bills for millions of poorer, low-income households should be more expensive than those of larger and wealthier households but that is often the case, and we see it when people are plunged into fuel poverty as debts rise.
“These proposed changes are a step in the right direction. They aim to reset the debt that has built up in the energy system following the energy crisis and reform the way debt is managed in the long term.
“The government and Ofgem must work together to provide compassionate support for vulnerable customers who have high energy needs while enabling those who use less energy to avoid the moral hazard of an effective poll tax on energy use.
“We also need to think about what can be done for those who simply cannot afford to pay their energy bills even as prices fall. The energy market must be reset so it works for people and planet, not for profit.”