Martin Lewis Issues Disappointing Update on Zero Standing Charge Energy Tariffs
Consumer finance expert Martin Lewis has provided an update on the proposed zero standing charge energy tariffs, delivering news that will disappoint many households across the country. The update confirms that plans for mandatory zero standing charge tariffs from all energy suppliers have been delayed beyond their original timeline.
Current Standing Charge Costs and Impact on Households
Currently, the standing charge for electricity is set at 54.75p per day, while gas carries a standing charge of 5.93p per day. For dual fuel households, this translates to approximately £18 per month that must be paid regardless of actual energy usage. This fixed cost continues even when households consume no power at all, creating financial pressure for many families.
Ofgem's Consultation and Delayed Implementation
Last year, Ofgem launched a consultation on plans that would make zero standing charge tariffs mandatory for all energy suppliers. The initial aim was to confirm these plans in January, but this deadline has clearly passed without resolution. Martin Lewis highlighted this delay during the latest episode of The Martin Lewis Money Show, expressing frustration with the lack of progress.
"What happened to Ofgem's low or no standing charge tariff it promised?" Lewis asked viewers. "All firms were supposed to offer these by the end of January, and then they said it would be early 2026. And now...tumbleweeds."
Upcoming Ofgem Appearance and Price Cap Announcement
The finance guru revealed that the boss of Ofgem will appear on his show in two weeks, coinciding with the announcement of the new price cap. Lewis described this as "possibly the biggest change we've seen to energy in the last three years," noting that energy prices are likely to decrease for both variable and fixed rate customers.
Lewis emphasized the importance of watching the February 24 episode, stating it's "a must watch" for anyone concerned about energy costs. The appearance of Ofgem's leadership provides an opportunity for direct questioning about the delayed standing charge reforms and other energy pricing matters.
Broader Context of Energy Market Changes
The standing charge issue comes amid broader changes in the energy market, with households continuing to face significant cost of living pressures. The delay in implementing zero standing charge tariffs means consumers must continue paying fixed daily charges that accumulate regardless of their actual energy consumption patterns.
This development highlights the ongoing challenges in reforming energy pricing structures to better serve consumers while maintaining the financial stability of energy networks. Households awaiting relief from standing charges will need to monitor future announcements from Ofgem and energy suppliers for any progress on this important consumer issue.
