Calls are being made for a radical shake up of how the nation pays its energy bills as it has emerged that Scots are typically paying over 50% more than people in London for electricity standing charges.

Demands are being made to 'end the Scottish surcharge' on energy as Ofgem data seen by the Herald shows that average annual daily electricity charges which cover the cost of connecting to the supply is typically at £238.64 in Scotland across the various methods of payment and meter types compared to just £156.26 in London.

It comes as a new study commissioned by the Warm This Winter group found Scots typically said they needed £70 off a month off their bills to make it affordable to heat their homes to a comfortable level.

Researchers found that some two in three (61%) of Scots are having to cut down on essential spending to afford their energy bills - with campaigners saying in some cases even this won’t be enough to avoid living in cold damp homes.

The study conducted by Opinium for the group asked how much these struggling households would need to be able to afford their energy bills. Around 19% of struggling Scots say that they need over £100 a month. On average, Scottish respondents said they need £70 a month off their bills.

READ MORE: Over 1200 more Scots treated for hypothermia in energy bills crisis

It has led to a wide range of health, poverty, housing and environmental organisations and academics calling on the Chancellor, Jeremy Hunt MP, to help families most in need of support through the introduction of an Emergency Energy Tariff in today's Autumn statement and a help to repay scheme for those in energy debt.

According to data from Ofgem based on a benchmark annual energy consumption, across much of England - the north west, southern and London areas - the average annual charge across payment methods is £186.84.

The Ofgem standing charges across payment and meter types amount to an estimated 66.6p per day in Southern Scotland, 63.6p in Northern Scotland and 43p in London. In north-west England it is and estimate 56.3p and in southern England it is 54.3p.

The Herald: Action must be taken now to ease energy bills pain

That is despite the fact that the standing charge is covered by the energy price cap, which sets a ceiling on how much suppliers can charge for it.

Former justice secretary now East Lothian MP and Alba Party deputy leader Kenny MacAskill who has been tracking the costs has called on ministers to end what he called the "energy poll tax" saying it was a "shameful situation".

He said there needed to be concrete measures to protect vulnerable customers and those in receipt of benefits, who are most at risk from self-disconnection, death from hypothermia and exacerbation of health conditions made worse by cold weather.

“It is totally unjustifiable that the further you are from London and the colder it is, the more you have to pay, even before you have even turned the lights or the heating on," he said.

"It is simply not good enough for the Government to say these are matters for the commercial market. "Ofgem are a creature of statute accountable to ministers and the UK Government must direct them to abolish these unfair standing charges which discriminate against Scotland or at the very least equalise them across Britain.”

Energy customers pay the fixed daily charge covering the costs of connecting to a supply, but there has been concern over increasing fees, customers' inability to reduce what they pay and the fact they are added to the bill regardless of how much energy you use.

There is also frustration on charges varying depending on where customers live even though the amount of energy that they use is irrelevant for this part of the household bill.

Ofgem say that across the UK, a customer who pays for their electricity bills by direct debit, has seen standing charges for domestic electricity more than double from £86 per annum to £186 per annum on average between 2021 and 2023.

They say the reason for the rise is that suppliers are now having to pay other costs, such as dealing with failure of some suppliers.

The Herald:

The standing charge is used to recover the costs required to provide energy company services, including providing and maintaining the wires, pipes and cables that deliver power to a customer’s door, through to the staff and buildings required for the energy business to function.

Industry regulator Ofgem is expected to announce on Thursday that the energy price cap will be increased to 28.94p per unit of electricity and 7.42p per unit of gas from the start of next year.

It means that the typical household’s bill will rise from £1,834 per year to £1,931, according to experts at consultancy Cornwall Insight.

The forecasts show that the typical bill will then fall to £1,853 from the start of April, but not reduce to below today’s level until July next year.

An Emergency Energy Tariff would use the existing Energy Price Guarantee mechanism to fix the unit costs and standing charges for vulnerable groups at a lower level.

Campaigners have suggested that this is fixed at the levels of energy bills in winter 2020/21, which would see eligible households’ monthly energy bills reduced by approximately £87 a month from current levels - a saving of around 46% The Warm This Winter-commissioned polling suggests that three quarters (74%) of the Scottish public who have an opinion would support the Emergency Energy Tariff proposals.

Simon Francis, coordinator of the End Fuel Poverty Coalition, which is part of the campaign to introduce the Tariff, said: "Energy bills will go up on 1 January 2024 at the worst possible time for struggling households.

"If the UK Government thinks that people will be able to get through this winter without more support for their energy bills, then they are living in cloud cuckoo land.

“We need to see the Chancellor introduce an Emergency Energy Tariff for vulnerable households and a Help To Repay scheme for those in energy debt.

"Even in winter 2024/25, energy bills will be 79% higher than winter 2020/21. Record prices are here to stay and the UK Government needs to take action to help people stay warm this winter and every winter through increased support for insulation and renewables.

“Failure to avert this cold homes crisis will lead to pressure on the NHS, a mental health catastrophe and additional winter deaths caused by living in cold damp homes.”

Ofgem has said that if the standing charge facility was scrapped, suppliers would still have to cover their "reasonable costs" in other ways, which would mean charging a higher price for every unit of power used.

They say the charge can vary from region to region because of the differing costs in supplying energy to a particular area.

They say their analysis shows that whilst moving to a charge that reflects how much customers use would benefit low-income households overall, there could be a significant number of customers made worse off. Energy UK, the trade association for the energy industry said that there is a cap for standing charges but there are regional variations reflecting the different cost of transporting energy in different parts of GB.

Daniel Portis, deputy director at Energy UK said: “With many customers set to pay as much - or even more - than last winter for their energy, we continue to urge the government to step in with targeted support for those who will need it most this winter - as well as deliver on its promised consultation on enduring support, like a social tariff.”

UK ministers said Ofgem was launching a call for input on standing charges and how they are applied.

They said the energy regulator is asking charities, consumer groups, businesses, bill-payers and suppliers for their views on the standing charge, and for proposals on alternatives.

They say that while prices are falling, they have "made sure" the Energy Price Guarantee remains in place to protect people until April next year.

And they say they increased the Warm Home Discount to £150 during 2022-23, and reformed the scheme’s eligibility criteria to prioritise households who are most likely to struggle to heat their homes.

A Department for Energy Security and Net Zero spokesperson said: “We recognise the cost-of-living challenges families are facing and we spent £40 billion paying around half a typical household’s energy bill last winter.

“We’re continuing to support the most vulnerable, with three million households expected to benefit from the £150 Warm Home Discount, £900 for those on means-tested benefits, and an extra £150 for disabled people.

“We continue to keep all options under review for those most in need.”

A spokesperson for Ofgem said: “We know standing charges have provoked a huge amount of debate in recent months and with wider cost of living pressures meaning customers will continue to struggle with bills, now is the right time to look at this again.

“The regional difference in standing charges is one of the issues we are examining in the call for input we launched and we would encourage consumer groups, charities, industry and consumers to share their views with us.

“However, it remains a complex issue with a difficult balance to be struck. Having an upfront set fee works for some it doesn’t work for others. Equally spreading the costs differently might help some but our previous analysis has found it can also penalise some really vulnerable households.”