Millions of British households are facing a fresh financial blow as major energy suppliers prepare to hike daily standing charges, even as the overall energy price cap falls.
What's Changing This July?
While the Energy Price Cap is set to decrease by approximately 7% starting July 1st, many customers will see their bills remain stubbornly high due to increased fixed daily charges. These standing charges cover the costs of maintaining energy networks and supporting vulnerable customers.
Supplier-Specific Changes Revealed
New analysis reveals how different providers are adjusting their rates:
- British Gas: Increasing electricity standing charges from 60.01p to 64.11p daily
- EDF: Raising electricity charges from 60.12p to 64.28p per day
- Octopus Energy: Customers will see electricity standing charges rise to 64.10p daily
- OVO Energy: Increasing to 63.33p per day for electricity
The Regional Divide
Where you live significantly impacts what you'll pay. Customers in London typically face the lowest standing charges at around 52p daily, while those in Merseyside, North Wales, and parts of Cheshire bear the highest burden at nearly 72p per day.
Why Standing Charges Matter
These fixed daily charges have become increasingly controversial as they continue to rise regardless of energy usage. Consumer advocates argue they disproportionately affect lower-income households and those who have successfully reduced their energy consumption.
An Ofgem spokesperson explained: "We have approved a temporary payment to help prevent energy failures and ensure suppliers can support struggling customers. This means standing charges remain higher than we'd prefer, but we're actively working on long-term solutions."
What This Means for Your Wallet
The typical annual energy bill will drop to £1,568 from July, down from £1,690. However, the increased standing charges mean that households using less energy may see minimal savings, while higher users benefit more from the reduced unit rates.
Energy experts recommend that concerned customers should review their current tariffs and consider whether they might benefit from switching providers or adjusting their payment methods.
