Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment he has made of the level of increases to daily standing charges in energy usage; what comparative assessment he has made of the impact of those increases on (a) low income and (b) other households; and whether he plans to take steps to encourage energy companies to return to previous levels.

The setting of the standing charge is a commercial matter for individual suppliers. The standing charge reflects the on-going costs that fall on a supplier to provide and maintain a live supply to a customer’s premises. One component of these costs relates to transmission and distribution costs, which have recently increased due to the Supplier of Last Resort (SoLR) levy. The majority of the levy consists of purchasing wholesale energy, at current high prices, to serve transferring customers. Standing charges are capped under the price cap and ensure millions of households pay a fair price for their energy.