Martin Lewis Slams £300 Standing Charge in Ofgem Interview
Martin Lewis Slams £300 Standing Charge in Ofgem Interview

Martin Lewis has criticised the £300 standing charge on energy bills during an interview with Ofgem chief executive Jonathan Brearley on ITV's Good Morning Britain.

The money expert questioned whether it is a "moral hazard" to make households pay £300 a year just for the facility to have gas and electricity, especially for low users who cannot cut back further.

Brearley acknowledged the issue and said Ofgem is opening up questions on operating costs and will look at standing charges, particularly for prepayment meters, but changes will take time.

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The interview followed Ofgem's announcement on May 25 that the energy price cap will fall to £2,074 from July, a reduction of £426 from the previous cap of £2,500, and £1,206 below the £3,280 level set for March-June.

The reduction is slightly less than the forecast 17.5%, but still provides relief from the high costs triggered by Russia's invasion of Ukraine and subsequent sanctions.

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