Shepton households facing high energy bills due to network supplier charges
Households in Shepton are facing the brunt of the UK's energy crisis, with hundreds of pounds added to their yearly energy bills.
According to a new analysis, these additional charges are a direct result of the standing charges imposed by network suppliers.
Anti-poverty campaigners have highlighted these fees, which vary by almost £100 across different regions, as evidence of Britain's "broken" energy system. With winter approaching, there is growing concern among customers about the escalating costs.
Standing charges are fixed daily fees included in household gas and electricity bills by the network operator, irrespective of energy consumption. These charges are meant to cover the costs of supplying properties with gas and electricity and are collected on behalf of the network companies.
The Warm This Winter Tariff Watch Report, produced by Future Energy Associates, shows a significant regional variation in these charges, with some areas of Great Britain paying considerably more. In Mendip, there are two different network operators, resulting in varied costs across the local authority.
The report reveals that the maximum annual standing charge in Mendip is £326.07, including £108.69 for gas and £217.38 for electricity. The operator SWEB has set a price £74.49 more per year than the cheapest standing charge in Great Britain, offered by London Electricity at £251.58.
This disparity means households covered by SWEB are paying an annual energy bill of £1,916, while those under Southern Electric have a slightly lower standing charge of £293.92.
Simon Francis, coordinator of the End Fuel Poverty Coalition, commented on the impact of these regional variations. "Britain's broken energy system means that some people are being priced out of being able to keep themselves warm," he said. He also expressed concern about the dread facing households as winter approaches.
An Ofgem spokesperson said the standing charge is covered by the energy price cap, and some suppliers do not apply one.
They added: "In the coming weeks we will be launching a call for input into standing charges, and will ask consumer groups, charities, suppliers, and customer representatives for feedback on what they see, so we can find the right balance for customers.
"It remains a complex issue with a recent impact study showed that moving costs from the standing charge to a higher unit rate would result in winners and losers – and could be particularly damaging for the most vulnerable consumers. "This includes those who are unable to reduce their energy usage because of age, disability or reliance on medical equipment."
A Department for Energy Security and Net Zero spokesperson said: "We spent nearly £40 billion to cover around half a typical household's energy bill last winter and additional help is available for the most vulnerable this winter through an increase to the Warm Home Discount, from which we expect over 3 million households to benefit. "We continue to monitor the situation and will keep options under review, including with respect to the most vulnerable households."
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