Standing charges for electricity should be scrapped to protect island households against "unfair" sky-high energy bills, west coast MPs have urged the UK’s energy regulator.
The standing charge - the charge you pay every day regardless of how much electricity you use - is currently under review by Ofgem.
Ofgem is responsible for setting the level of standing charges within the price cap. The price cap limits how much energy suppliers can then charge households.
People in the Highlands and Islands pay "over 50 per cent higher electricity standing charges than charges in London," said Argyll and Bute MP Brendan O’ Hara, "despite having higher bills due to a colder climate and living in an area that generates more wind and hydro power than anywhere else in the UK."
Isles MP Angus MacNeil called on Ofgem to take urgent action to scrap "unfair and regressive" standing charges which "threaten a further fuel crisis this winter".
Mr MacNeil, independent MP for Na h-Eileanan an Iar, said: “Standing charges are unfair and regressive and penalise those on lower incomes or those who are actively reducing their energy use.
“You don’t pay a standing charge to buy petrol, you just pay for what you use as should also be the case for energy bills.
“The UK Government should engage with Ofgem to revise the standing charge model and replace it with a system which would correlate costs to ensure households only pay for energy they use.
“The worst fuel poverty stats in the UK are in the island areas of Scotland. Many people do not have the alternative of gas and are paying for these unfair legacy structures."
Meanwhile, Mr O’Hara and Drew Hendry, SNP MP for Inverness, Nairn, Badenoch and Strathspey, met Ofgem to talk about the Highland Energy Rebate Campaign.
The campaign advocates for a rebate scheme for residents in the Highlands and Islands who contribute significantly to the UK’s renewable energy production.
It targets the imbalance in energy costs, particularly for those in off-grid areas who cannot access cheaper energy alternatives.
Mr O’Hara called on Ofgem to scrap standing charges completely, saying: “Ofgem has an opportunity to right this wrong in their review of standing charges," he said.
"These high standing charges impact households, unfairly penalising people on lower incomes and those looking to use less energy.
“It is vital that we see fair energy pricing implemented as soon as possible.
"The inequity is clear: people living in the Highlands and Islands face disproportionately high bills and fuel poverty despite living in an energy-rich region that produces up to six times the energy it uses through renewable sources.
“There is an urgent need to address this inequality and create an energy market based on fairness.
"Introducing a Highland Energy Rebate alongside scrapping standing charges should be at the very top of the list.”
Ofgem is currently still reviewing standing charges and is yet to release a conclusive report on its findings. The internal review comes after the charge more than doubled over the past two years.
An Ofgem spokesperson said: “We know that standing charges have provoked a huge amount of debate in recent months, with different balances to be struck, which is why we opened a call for input, and more than 30,000 people have responded to share their views.
“We know that with wider cost-of living-pressures, people are concerned about their bills, so we will now use these responses to inform how we approach this complex issue and set out next steps in due course."
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