Plans for new energy tariffs with no standing charges

Ofgem is proposing a shake-up of energy tariffs that would require suppliers to offer options with no standing charges. This follows widespread calls to eliminate fixed daily charges that all households pay regardless of energy usage. Customers would have the choice between a price-capped tariff that includes the standing charge and one that includes these costs in energy usage charges instead. The proposed overhaul also addresses unpaid bills accumulated during a recent high-price crisis. Some critics argue that vulnerable customers may struggle to make an informed decision on the new tariffs. Additionally, Ofgem is planning a debt repayment plan to address the growing amount owed to suppliers by customers.

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