Consume less energy and pay less: the plan to reduce “unfair” charges

Households that use less electricity and gas will see their energy bills fall thanks to new plans to reduce fixed tariffs.

Energy Secretary Ed Miliband is due to speak to energy regulator Ofgem and ask it to cut fixed charges paid by consumers before they even use energy.

Fixed charges for domestic electricity customers have increased significantly since 2021. For a customer who pays their electricity bills by Direct Debit, they have more than doubled, from £86 per year to £186 per year on average.

This measure would mean that a greater proportion of bills would be made up of the unit cost of electricity, which would increase costs for households that consume more electricity.

Miliband believes the measure will help poorer households,