Octopus Energy chief urges review of standing charges after gas‑bill cuts

Octopus Energy chief executive Greg Jackson told BBC Breakfast that the government's decision to lower gas bills for millions of households should be matched by a rethink of the standing charges that customers continue to pay, regardless of usage.

Standing charges are a fixed daily fee that energy suppliers add to every bill to cover the cost of maintaining the network and handling customer accounts. While they are a standard part of the tariff structure, Jackson argued that they become a disproportionate burden when the variable portion of the bill falls sharply, as it does under the recent gas‑price relief.

The chancellor announced a series of cuts aimed at easing the cost‑of‑living squeeze, reducing the per‑unit price of gas for a large segment of the population. The move, part of a broader package of measures targeting inflationary pressure on households, was welcomed by consumer groups but left the fixed component of energy bills untouched.

Jackson said that for many low‑income families, the standing charge represents a significant share of the total monthly outlay, especially when consumption is low due to energy‑saving measures or seasonal variations. He warned that without adjusting the fixed fee, the intended relief could be diluted, leaving vulnerable customers still facing high bills.

The issue sits within a wider debate over how the energy market should balance supplier costs, network infrastructure investment and consumer protection. Regulators have previously allowed standing charges to vary within set limits, but industry observers note that the current climate of volatile wholesale prices has prompted calls for a more flexible approach.

Octopus Energy indicated it will monitor the impact of the chancellor's announcement and engage with the regulator to explore possible adjustments. The company’s stance adds to growing pressure on policymakers to consider a holistic review of energy pricing, ensuring that reductions in variable rates are not offset by unchanged fixed fees.