Industry bosses and experts are calling for the abolishment of standing charges
Industry bosses and experts are calling for standing charges to be reduced, accusing them of being far too high.
Similarly, money-saving expert Martin Lewis labelled the current standing charge of £300 a year a 'moral hazard' and has called for it to be reduced. Standing charges are used to pay for a variety of things such as the upkeep of the electricity and gas grids, but critics say the system is unfair and gives people less control over their energy bills.Writing on Twitter, Mr Lewis said: "The high energy standing charges are a moral hazard and should be reduced.
"The reason Ofgem mandates firms to have high standing charges in the price cap is because they use it to pay for the 'fixed costs' of energy - which it believes should be mostly shared equally. It is especially loaded onto the electricity standing charge as that is 'more universal'."Centrica Boss Chris O'Shea similarly said those who attempt to save the most are being hit the 'hardest' due to the standing charge.
Mr Lewis suggested: "I think a more progressive split would be better, by putting a bigger proportion of the cost on the unit rate. And in past polls I've done on here the huge majority agree.
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