Martin Lewis explains exactly why standing charge is going up for gas and electricity | Personal Finance | Finance


Tacking various money worries in a cost of living special on ITV’s Good Morning Britain today, Martin spoke to Anne, from Lancashire. She asked: “Why does the standing charge have to increase as well as the gas and electric?”

Martin acknowledged this as a popular question amongst Britons, saying it was the “single biggest question after ‘should I fix?’.”

Britons in many cases are paying over £200 per year in standing charges, the expert added.

Addressing the issue further, he said: “This is not the energy firms. The price cap is not a cap on the total amount you pay.

“It is, in fact, a cap on unit rates and the standing charge.

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Martin added: “What the regulator thought is that not everyone has gas, but almost everyone has electricity.

“It’s a fixed cost, so they’ve put a lot of that cost on the standing charge, because everyone has to pay.

“So, to be fair to the providers, the reason your standing charge is going up so much is because the price cap standing charge has gone up so much.”

A standing charge is added to most people’s gas and electricity bills.

The matter is likely to affect people differently depending on where they live in the UK.

Individuals living in south Western areas of England, north Wales, Merseyside and southern Scotland will face a 100 percent increase in their standing charges.

Those in London face the smallest increase, but they will still see the standing charge rise by 38 percent.

Martin also briefly addressed this, saying: “It varies by region as well, which is a little bit perverse.”

Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip

Good Morning Britain airs weekdays on ITV from 6am.



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