EDF Power clients can save £776 on their vitality invoice per 12 months after a every day cost has been scrapped.

Below new plans by vitality regulator Ofgem, vitality suppliers should supply households “zero standing cost” tariffs alongside current ones.

The transfer comes as a part of efforts to deal with rising family vitality debt and can come alongside new requirements for suppliers to make it simpler for struggling clients to get help.

Below Ofgem’s worth cap, standing fees have elevated 43% since 2018 and from January 2025 will price twin gas households £338 on common per 12 months. The costs disproportionately have an effect on households that use much less vitality because the fastened prices make up a better proportion of their general invoice.

However below Ofgem’s plans, suppliers should supply zero standing cost tariffs which means EDF clients on a two 12 months repair would save a whopping £776 if the fees have been scrapped right this moment.

Standing fees are a hard and fast every day quantity that’s added to your vitality invoice by suppliers, no matter how a lot vitality you utilize.

At present, households on commonplace variable tariffs presently pay a mean of 24.5p per unit with a standing cost of 60.99p per day, whereas for gasoline the common is 6.24p per unit with a standing cost of 31.66p per day.

From January 1, standing fees will drop barely to 60.7p per day for electrical energy and 31.65p per day for gasoline, however some suppliers already supply low or no standing cost tariffs in any respect. However whereas these tariffs are not less than 10% beneath the worth cap they do have a better unit charge, which means they’re extra prone to profit clients who use much less vitality.

Ofgem mentioned tens of hundreds of customers have known as for standing fees to be axed altogether, however those that use numerous vitality – typically for medical and well being causes – would see their payments rise considerably, so it determined it was vital for households to retain a alternative of tariff.

Tim Jarvis, director basic of markets at Ofgem, mentioned: “We all know that many households proceed to battle with payments after the occasions of the vitality disaster, which is why earlier this 12 months, we took steps to contemplate all the problems round affordability and debt – together with the influence of the standing cost.

“Many individuals really feel very strongly that standing fees are unfair and stop them from having the ability to handle their payments successfully.

“We wish to give customers the power to make the selection that’s proper for them with out placing anyone group of customers at a drawback. And by having a zero standing cost tariff, we’d create that alternative for everybody.”

Ofgem additionally set out plans for a “debt assure” to enhance the usual of service provided by suppliers supporting clients in debt, which it mentioned would give households “constant, compassionate and tailor-made help”.

Suppliers is also required to simply accept debt reimbursement gives from respected third events similar to debt recommendation businesses or shopper organisations.

Recommendation service Nationwide Debtline mentioned vitality debt is the second-most frequent debt amongst folks it helps – behind bank cards – with the common quantity owed in vitality arrears growing by 37% previously 12 months to £1,541.

The charity’s director of coverage and advocacy, Peter Smith, mentioned: “There may be important public concern round how excessive standing fees are. All main political events made guarantees of their manifestos to scale back standing fees.

“Households that use prepayment meters are notably impacted by the continuation of excessive standing fees. Whereas a number of choices to higher defend prepayment meter households have been recognized, Ofgem has opted to do nothing, leaving susceptible households in typically dire conditions.”