Ofgem has launched a review and consultation on standing charges with a view to their potential replacement.

The standing charge cost in each electricity and gas bill is currently set by the supplier and varies dependent upon location. Some suppliers list it as a separate charge, others offer a tariff that is paid in the first one or two units of energy used.

The charge covers the cost to maintain the energy supply network, take meter readings, and support Government social schemes.

Feedback from consumers, the energy sector and suppliers, consumer groups and charities will be fed into the review and set out in recommendations in a formal consultation due to be published next year.

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