
Should the UK replace domestic energy billing charges with a fixed allocation of units at a fixed price?
UK domestic energy bills consist of a daily standing charge of around 86p for dual fuel plus unit rates, currently capped by Ofgem at levels that add about £315 a year in fixed costs before any usage. Recent reforms have shifted some policy costs like the Warm Home Discount to unit rates and piloted lower standing charge tariffs, while proposals for rising block tariffs or universal basic energy suggest subsidised rates for initial consumption blocks to aid low users. The idea of a fixed allocation at fixed price would fundamentally alter this by rationing a set volume rather than charging for all usage.
23 Opinions
Energy prices should have only one tariff that’s it everything else should be scrapped. It is deliberately complicated so energy companies can trap you in contracts to buy from them or extract as much money from you as possible. It is also made overly complicated to make transferring difficult and daunting. Energy companies should only have one price no contracts no deals just one price day and night. Competition will make sure that price stays as low as possible. Clarity.
Can we PLEASE stop distorting the market for five minutes?
A cautious No as I don’t know enough about this. Smart meters were promoted deceitfully as they permit power to be rationed & shut down under the false guise of savings & management of one’s consumption. The Grid is seriously failing through lack of investment - a prime example of the right investment choices not being made by Govt - think about this the next time Socialists whine about Water privatisation, Power will be rationed in favor of AI i.e.power cuts. Labour know.
I've said yes but its a Big Conditional Yes, if the price is set reasonably then it can help everyone if its set too high as energy companies would love it to be it could end up being completely unfair on the consumer in which case my answer would change.
No to rationing but the energy charging structure seems unnecessarily difficult to understand. It should be possible to forecast use predictably but it always seems to be a nasty surprise for one reason or another.
And who will decide what amount is given? … seems like the slippery slope to totalitarianism.
A fixed allocation per household is how I’ve read this. “Rationing” energy is a very dangerous road to be going down.
Pay for what you get
A guaranteed baseline allocation at a fixed, affordable price eliminates predatory standing charges and ensures nobody freezes in winter. Provided the quota adjusts for disability medical kit and household size, it protects vulnerable homes while making luxury mega-consumers pay their fair share.
You should pay according to what you use, not be forced to pay for what you don’t