The standing cost covers the price of offering and sustaining the wires, pipes and cables that ship energy to your door, together with the power firm’s employees and buildings.

It at present prices the typical family 53p a day for electrical energy and 30p a day for fuel, including £303 a 12 months to payments no matter how a lot power you utilize. The cost is roofed by the power worth cap, which additionally units a ceiling on how a lot suppliers can invoice.

MoneySavingExpert.com founder Martin Lewis has campaigned for standing prices to be lowered, claiming they “unfairly penalise” households on decrease incomes. “Outrageously, most people will pay £300 a year just for the facility of having gas and electricity, even if they don't use any. “

High standing charges also discourage households from cutting back on energy usage as there is only so much you can save from doing so, he added.

Historically, customers on prepayment meters have paid higher standing charges than direct debit customers, which reflects the higher cost of serving them. 

The Government is currently subsidising them through the Energy Price Guarantee but this support is due to expire at the end of March.

Lewis said many prepayment customers find themselves in debt in the summer because the meter has still been ticking over due to the standing charge. “This is a terrible, unnecessary situation for the most vulnerable.”

Last week, power regulator Ofgem known as on bill-payers and suppliers to offer their views on the standing cost, and make proposals for alternatives.

Ofgem’s director for markets Tim Jarvis stated the cost-of-living disaster has stirred up debate however warned that this can be a complicated situation. If the standing cost was reduce or axed then suppliers must cost the next worth for each unit of energy used.

This would penalise susceptible households such because the aged or disabled on low incomes who spend lengthy durations at house and want to remain heat. “There is a difficult balance to be struck,” Jarvis stated.

Standing prices are too excessive and the present method is unfair, stated Peter Smith from gasoline poverty charity National Energy Action. “How can it be right that someone who can’t afford any energy for their home, still pays a daily charge that is the same or more than someone in a mansion? An overhaul is long overdue.”

Many on prepayment meters have reduce power utilization to the purpose the place it may very well be damaging their bodily or psychological well being solely to see standing prices double in recent times, Smith added. He known as on Ofgem to replicate a buyer’s utilization and fee technique when setting the standing cost.

Where you reside additionally has a huge impact on how a lot you pay, as individuals in North Wales and Mersey pay a 3rd extra a 12 months than Londoners, stated Ben Saltmarsh, National Energy Action’s head of Wales. “How can it be fair that areas across Great Britain that are more likely to struggle with their bills, pay so much more? Ofgem's review should have a clear focus on reducing or eliminating these regional variances.”

It is feasible to keep away from paying it, although.

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Utilita Energy says it's one of the only energy suppliers to have no standing charge at all. "This means you won’t pay anything if you don’t use any energy.”

Its Smart Energy tariff has two rates. Your energy gets cheaper when the Saver Rate automatically kicks in after you’ve used 64p a day.

This may suit low users or those whose properties stand empty for a large chunk of the year. Do your sums carefully, though.

Choosing a tariff with no standard charge will not help those with higher gas and electricity usage. Lack of supplier choice and higher unit energy costs could make this option more expensive.

Elsewhere, EDF has announced it will be rolling back “regressive” standing prices for its most susceptible clients this winter as a part of a £40million help package deal.

Its monetary help can be utilized to round 260,000 eligible clients’ accounts as a £30 credit score in December.

Others have little selection however to pay up. Where standing prices are involved, there aren't any straightforward solutions.