Octopus hands lifeline to customers with a cut to the standing charge

All customers on Octopus’s standard variable tariff will automatically receive a 4 percent reduction in standing charges on their energy bills compared to Ofgem’s price cap. In addition, up to 100,000 customers in greatest need will be able to apply for “standing charge holidays” of up to six months to help them manage the cost of living.

Octopus is beginning the battle against standing charges by slashing 4 percent off these charges on people’s energy bills.

It is also introducing standing charge holidays for customers who need it most and claims Britons will no longer be penalised for having a pre-payment meter.

Greg Jackson, CEO and founder of Octopus Energy said: “High standing charges are egregious. This £40million package is the beginning of our battle to bring them down.

“Far too many costs have been loaded onto standing charges – from grid and distribution charges to failed suppliers.”

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Mr Jackson continued: “These charges just make it more difficult for hard-pressed customers to save money through efficiency and Octopus is making a stand to change that.”

This decision will affect millions of Octopus Energy customers and many others will be hoping other energy suppliers follow suit. 

A standing charge is a fixed daily amount that Britons have to pay, no matter how much energy they use.

This charge covers the cost of supplying the property with gas and electricity but it has been causing controversy because it means that people who don’t use any energy this year will still have to pay £273 because of the standing charges according to Money Saving Expert founder Martin Lewis.

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