UK Says Cut to Standing Charges Alone Won’t Reduce Energy Bills

UK energy suppliers will be required to offer at least one tariff with a lower standing charge, a flat daily fee added onto consumer bills to connect to the electricity grid.

The government and industry regulator Ofgem are looking at ways to lower bills, and standing charges, which are rising, are one area under scrutiny. The proposed changes in a new report will offer more choice to consumers, according to Ofgem, but won’t by themselves cut bills.

“These tariffs are unlikely to reduce bills on their own,” said Tim Jarvis, director general of markets at Ofgem. “It’s important that everyone ...