Most households’ energy bills will be reduced as a result of Ofgem’s plans to reduce standing charges.

Part of the cost of sky-high energy bills could be eliminated under proposals from the Ofgem energy regulator to help British households cope with rising living costs.

Ofgem’s plans to reduce standing charges could result in lower energy bills.

Millions of households in the UK have already seen their bills rise after Ofgem raised the April price cap to just under £2,000.

This price cap, which is expected to rise to £2,800 in October, limits how much the average home on a variable rate deal pays for energy each year.

However, Ofgem CEO Jonathan Brearley stated today that the energy regulator is looking into the matter.

A standing charge is something you pay to your energy provider even if you don’t use any electricity or gas, and it’s added to most bills.

Standing charges for electricity are approximately 45p per day per household, and gas standing charges are approximately 27p per day.

Even before you use any energy that adds up to £164.25 for electricity and £98.50 for gas per year.

The price cap is currently changed every six months, in April and October, but Ofgem has proposed changing this to every three months.

This means it will be revisited in January. The price cap was first implemented by Ofgem in 2019, and it is based on a number of factors, including the wholesale cost of power in the previous six months.