Lower standing charge tariffs set to be available by end of January

More choice on payment methods fro standing charges the aim of industry regulator Ofgem - but plans to remove fixed costs ditched

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Energy suppliers will be made to offer at least one tariff with lower standing charges as soon as January under plans confirmed by the industry regulator, but it ditched proposals to remove the fixed costs entirely for some deals.

Ofgem said it wants to give consumers more choice on how they pay standing charges, with the plans set to allow households to pay the costs as part of their unit rate by lowering the daily fixed amount.

If given the go-ahead, the new tariffs could be available by the end of January.

Standing charges are applied daily, regardless of how much energy the customer uses, and are used to cover the cost of supplying energy to homes and businesses.

They also cover the costs of building new network infrastructure and keeping the power on when energy suppliers go bust.

Campaigners say they are unfair because everybody pays the same rate, meaning they make up a far higher proportion of bills for people using less energy.