Energy boss expects Ofgem to bring down standing charges

Highights

• Ofgem ought to provide support in driving down the standing charges for energy bill payers across the UK, as per Octopus Energy head.
• The energy boss has claimed that many customers cannot comprehend the high standing charges.
• Ofgem is expected to step up and help energy users, especially the low-energy users who are more vulnerable to rising costs.

Energy regulator Ofgem ought to provide support in driving down the standing charges for energy bill payers across the UK said the boss of one of the nation’s biggest suppliers.

Octopus Energy head Greg Jackson has claimed that many customers cannot comprehend the reason behind the standing charges, which are a part of the bill to be paid irrespective of the energy usage, being so high.

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This came after the company said it would go for a 4% reduction in the standing charge for customers who have their bills regulated under Ofgem’s energy price cap. Reportedly, Jackson has claimed that customers expect the standing charges to be reduced and hopes Ofgem would follow Octopus’s footsteps.

With the winter season ahead, UK households will face the challenge of reducing energy. Ahead of a rough winter, energy saving is the most crucial thing to take care of. Standing charges must be paid even with reduced energy consumption, which would take away the incentive to save energy. Thus, Ofgem is expected to step up and help energy users, especially the low-energy users who are more vulnerable to rising costs.

While energy prices soar, UK investors can assess the performance of the following energy stocks based on their YTD (year-to-date) returns.

Energean plc (LON: ENOG)

With a market cap of £2,405.33 million, Energean plc’s shares were witnessing a dip of 1.93% and were trading at GBX 1,325.00 at 11:08 AM (GMT+1). The global operational producer of hydrocarbons’ YTD returns stood at 54.85% as of 26 September. The FTSE 250 company presently offers an annual dividend yield of 2.0%, and its P/E ratio stands at 45.97.

Hunting plc (LON: HTG)

With a market cap of £409.88 million, HTG shares were trading at GBX 242.00, falling by 2.62% on Monday at 11:08 AM (GMT+1). The energy equipment and services firm Hunting plc’s returns on a one-year and YTD basis stood at 15% and 42.73%, respectively, as of 26 September. The energy firm is presently offering an annual dividend yield of 3.3%.

EnQuest plc (LON: ENQ)

Independent organisation concentrated on petroleum production, EnQuest plc’s market cap stood at £501.66 million as of 26 September. ENQ’s returns on a one-year and YTD basis stood at 8.64% and 34.35%, respectively, as of 26 September. The company’s P/E ratio presently stands at 0.85. Its EPS lies in the positive zone, at 0.22. ENQ shares were trading at GBX 25.15, tumbling by 5.45% on Monday at 11:09 AM (GMT+1).