Electricity: Domestic Pricing

Earl of Clancarty Excerpts

Tuesday 21st April 2026 Lords Chamber

[Lord Whitehead (Lab)]

Of course, the Government have addressed those costs, particularly in the recent move to take elements of the levies away from levy arrangements and into the general Exchequer. That is part of the £150 off energy bills that the Government have recently reported. The noble Lord is absolutely right about the effect of levies on prices, but I hope he will also accept that that is exactly what the Government are doing at the moment: bringing prices down for the consumer by transferring how those levies work for the future.

[The Earl of Clancarty (CB)]

My Lords, it is good news that the Government have enabled standing charges to be reduced, but should standing charges not be got rid of completely? They are basically daylight robbery.

[Lord Whitehead (Lab)]

The noble Earl treads a fine distinction between the possible daylight robbery of standing charges and the fact that some charges need to be levied collectively because of the various fixed costs that the system has, which have to be contributed to in order to deliver the service to individual consumers. How you charge those standing charges is a matter of considerable debate and something that the Government are looking at. Whether, for example, you charge them as an overall fixed sum or as a sum per household, depending on its energy bills, is a matter of considerable debate at the moment. The idea that standing charges should relate more exactly to what standing charges should be for in the first place is a point well made.