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<p>Setting energy tariffs is a commercial matter for individual suppliers. There are
fixed costs in the supply of gas and electricity, such as meter costs and providing
an emergency service, so any tariff with a zero standing charge would need to levy
the fixed cost via a higher unit rate. This could benefit some low consumption households
but could also make higher consumption households worse off, such as those with children
or people who need to use more energy due to ill health. The price cap on default
and prepayment meter tariffs ensures that all households pay a fair price for gas
and electricity.</p>
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