Why should rich people pay more for their energy bills?

The point of a government energy regulator is supposed to be to make sure that the market is working to achieve proper competition. Their other job is surely to keep an eye on the billing practices of energy companies – to make sure, for example, that they are not hoodwinking people into signing up for their services on the basis of incorrect information. But, as has become common with quango arms-length government agencies, Ofgem appears to be trying to broaden its remit.

Ofgem has decided to make a foray into the issue of redistributive taxation. The body has proposed that the standing charges imposed on gas and electricity bills should be varied according to means, with high-income households paying higher standing charges and low-income ones being granted a discount.

As chief executive Jonathan Brearley puts it, Ofgem wants to ‘raise the question of whether there is a more progressive way to pay’.