Overview

• Ofgem CEO Jonathan Brearley announced a summer review to examine linking fixed energy charges to household income to fund net zero infrastructure upgrades.
• The consultation aims to address concerns that low-income households and prepayment meter users are disproportionately burdened by rising standing charges.
• Standing charges, which fund grid maintenance and environmental policies, have doubled since 2021 and are expected to increase further with extensive network upgrades required for a net zero electricity grid by 2030.
• Operational challenges, including the need for data-sharing agreements with HMRC, must be resolved before implementing income-based billing reforms.
• Charities and campaign groups emphasize the urgency of reform to prevent vulnerable households from bearing the brunt of the transition to renewable energy.