It may have passed many consumers by, but there will be some fundamental changes to the energy industry this year. Ofgem, the UK energy watchdog, have carried out a Retail Market Review and have ordered a number of changes in an effort to try and simplify the energy market for consumers. One of the more significant of these changes will be the abolishment of no standing charge tariffs.
For those that aren't aware, gas and electricity tariffs typically charge an ongoing daily fee (also known as a standing charge) and then an additional cost on top of this for each unit of energy used. So this means that even if you go on holiday for two weeks and turn off all your lights and appliances and don't use a drop of gas or electricity in this time, you will still be charged the daily fee.
To counteract this 'no standing charge' tariffs were also available. As the name suggests, these tariffs came without the standing charge, but instead you would pay more per unit of energy you used. These tariffs were often perfect for holiday home owners and those with second homes that stood vacant for portions of the year - if you weren't using any energy, your bill would be zero.
However with the Ofgem changes to get rid of no standing charge tariffs, this will no longer be an option. Now, all homes will be charged the daily fee and will be accruing costs on a bill, regardless of whether energy is being consumed or not. This could result in some holiday home owners facing an increase in their energy bills of up to £346 per year.
Take action. While these no standing charge tariffs will no longer be available, there are still some energy tariffs on the market that have a lower standing charge than others. The best advice for holiday home owners and others similarly affected by this change is to compare the whole energy market and find the cheapest deal for your personal energy usage patterns. You can do this at UK Power and can get started by entering your postcode in the box above. Or if you have any questions and would like our impartial, UK based energy experts to advise which tariff will be most suitable for your individual circumstances, please feel free to give us a call on 0808 252 0251 and we'll be happy to help.
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