"The proposed change will also reduce the costs associated with void periods and will, therefore, be beneficial for landlords and agents. By not paying the standing charge, landlords could reduce or eliminate these costs completely."
- Jamie Parks - Muuvo
All households currently pay fixed daily charges covering the costs of connecting to a supply, but there have been widespread calls for these fees to be scrapped.
Ofgem is proposing suppliers offer one price-capped tariff that includes the standing charge, and another that loads these costs on energy usage charges instead.
Customers will choose which type of tariff suits them best.
When Ofgem asked for the public's views on standing charges it received a huge response of over 30,000 submissions.
The majority were against standing charges - which are fixed fees, typically totalling more than £300 a year, that are paid irrespective of how much energy households use.
Under Ofgem's price cap, standing charges have risen by 43% since 2019.
Those with low energy usage, such as people who live alone, argued that even if they further reduced how much gas and electricity they used, they saw little difference in their bills. They wanted more control over their outgoings.
Jamie Parks, Founder and Head of Sales at Muuvo said: “The proposed change will also reduce the costs associated with void periods and will, therefore, be beneficial for landlords and agents.
"By not paying the standing charge, landlords could reduce or eliminate these costs completely.
"At Muuvo, our energy partner already offers a bill credit of £15 for landlords during void periods.
"Under the current system, this credit can typically be quickly used up by the daily standing charges, which cost almost £1 per day for a duel fuel property.
"However, without daily standing charges in place, the credit will clearly stretch much further, helping to alleviate void period costs.
"Most void properties use minimal or no electricity, which means they will often fall below the £15 credit threshold. As a result, no bills would be generated, saving landlords money and precious time for the agent.
"This will be of particular benefit to agents managing bill payments for fully managed properties on behalf of the landlord.”
