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admin 17.12.2014

Greedy energy firms have been accused of manipulating new daily charges to entice customers on to expensive deals.This year, Britaina€™s energy giants must simplify their tariffs. Tom Lyon, of price comparison website uSwitch, says: a€?Standing charges are supposed to simplify things for consumers and make it easier for them to compare deals.
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Power supplier E.ON is introducing a flat rate electricity and gas standing charge in a bid to make pricing easier for small businesses. The new move will benefit businesses joining the energy company or existing customers renewing onto a fixed-term contract from tomorrow.

It follows Ofgem’s launch of the new standards of conduct for energy suppliers to treat small businesses fairly.
Standing charges are associated with supplying and serving customers such as metering, distribution and customer service costs.
It made the announcement following the company’s survey which showed less than half (46%) of small businesses “completely understood” their bills and 89% said “clear and open information” on what makes up a bill was crucial to maintaining good relationships with their energy provider.
Earlier this year the supplier committed to a maximum one-year period for backdated bills and last month announced an end to auto-rollover contracts for small businesses. Instead of offering confusing tiers of different rates, they must bring in a standard daily fee to cover their costs for supplying gas and electricity. But research has revealed it will vary from nothing to 51p a day, adding hundreds of pounds a year to bills.

Suppliers have different approaches in recovering these costs which is said to cause confusion among energy customers. Households will also have to pay a separate standing charge for gas and for electricity.Some firms are even levying higher standing charges depending on which tariff you sign up for. The higher initial rate is supposed to cover fixed costs.But this system has been criticised for being too confusing, as the number and cost of units varies wildly from tariff to tariff.
From January 2014, customers will be billed a single standing charge for supplying customers with their power and gas.

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