A row has erupted over rising energy costs after Ofgem announced a new consultation into standing charges, a move critics have called “too little, too late and still far too unfair.”
The charges, which add over £300 a year to typical household bills regardless of usage, have been branded a “poll tax” by consumer campaigner Martin Lewis.
He described the latest announcement from the energy regulator as “disappointing,” saying it failed to offer meaningful relief to struggling families.
The SNP has now called on the UK Government to intervene and significantly reduce standing charges or risk breaking a key election promise.
Labour had pledged to cut energy bills by £300 a year, but the next price cap in October is now expected to be £487 higher than that promise.
Graham Leadbitter MP, the SNP’s energy spokesperson, said Ofgem’s proposals were not enough.
“This latest Ofgem announcement is too little, too late and still far too unfair,” he said.
“Energy standing charges are a poll tax on consumers and people instinctively know how unfair they are and how much they end up costing.”
The standing charge is a fixed daily cost added to electricity and gas bills regardless of how much energy a household uses.
Critics say this unfairly penalises low-use customers, including older people, disabled people, and households living in fuel poverty.
Ofgem’s latest consultation proposes a review of how these charges are applied, but stops short of suggesting they be scrapped or significantly reduced.
Campaigners argue the regulator has once again chosen to “appease suppliers” rather than protect vulnerable consumers.
Mr Leadbitter urged the Labour Government to act.
“If Labour fails to step in and radically reduce standing charges, they’ll be breaking another promise to cut energy bills,” he said.
“Scotland generates more electricity than it uses and exports power to the rest of the UK, yet Scots still pay among the highest energy bills in Europe.”
Recent analysis suggests standing charges in the north of Scotland are some of the highest in the UK, with Highland and Island households particularly affected.
Many rural homes rely on electric heating or off-grid systems, making standing charges even more painful for those least able to absorb the cost.
A separate OECD report this week warned that the UK is set to experience the highest inflation rate of any major economy in 2025, with energy and food bills driving the crisis.
The report estimates inflation will rise to 3.5 per cent by the end of the year, up from 2.5 per cent last year.
Mr Leadbitter said the situation underscored the need for greater control over energy policy.
“Only a fresh start with independence, putting Scotland’s energy in Scotland’s hands can end this unfair system,” he said.
