Will tariff fuel costs?

FIVE-MINUTE GUIDE TO... THE PROS AND CONS OF LOWER STANDING CHARGES

- By Harvey Jones

TOUGH CHOICES: Energy bills rising

HOUSEHOLDS face another blow next week as the average annual energy bill rises to £1,755 under Ofgem's price cap, adding £38 to the average bill. This will leave millions paying more just as the colder weather sets in.

For pensioners on fixed incomes, that's especially tough. Many spend more time at home, so they cannot cut consumption easily. And even if they do, there's no escape from the standing charge, the daily fee you pay simply for being connected to the network.

Standing charges cover the cost of running cables and pipes to homes, paying for call centres, and funding government energy schemes.

From October, the typical electricity standing charge will be £196 a year for direct debit or prepayment customers, while gas adds another £124.

So that makes up roughly a fifth of the average bill.