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What are the new energy tariffs proposed by Ofgem?
Ofgem's proposed tariffs include giving consumers more choice on how they pay standing charges, allowing these costs to be included in the unit rates. This means you could pay a lower fixed daily charge but potentially higher per-unit costs, or vice versa. The goal is to offer more flexible options tailored to different energy usage patterns.
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Will these changes lower my energy bills?
According to Ofgem and industry experts, these new tariffs are unlikely to significantly lower overall energy bills. Instead, they aim to provide more options for consumers to choose a plan that suits their usage, but the total cost may stay similar. Critics warn that vulnerable households might not benefit as much from these changes.
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How will consumers be affected by the new options?
Consumers will have more choices on how they pay for energy, especially regarding standing charges. Some may find plans that better match their energy habits, but others could face higher costs if they choose less suitable options. It's important to compare plans carefully once the new tariffs are available.
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When will these new tariffs be available?
The final decisions on the new tariffs are expected by the end of 2025, with the new options likely to be available from January 2026. This gives consumers and energy providers time to prepare for the changes and understand how they might impact bills.
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Are these tariffs good for vulnerable or low-income households?
There are concerns that the new tariffs may not benefit vulnerable groups as much as hoped. Critics like Citizens Advice warn that some households could face higher costs or less transparent billing. It's important to stay informed and seek advice if you're worried about how these changes might affect you.
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Could these new tariffs lead to higher energy bills for some?
Yes, depending on the plan you choose, some households might see their bills increase. For example, if you opt for a plan with a lower standing charge but higher per-unit costs, your total bill could go up if your energy usage is high. Always compare options carefully before switching.