Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential impact of changes in the level of standing charges on (a) low income and (b) other vulnerable households.

How suppliers choose to set the standing charge and unit rate is a commercial decision. However, the energy price cap sets a limit on unit rates and standing charges, ensuring that millions of households pay a fair price for their energy.

In August 2022, Ofgem reviewed the components of the standing charge to see if they could be reduced. Ofgem concluded that, if the methodology for the standing charge were to change, there are numerous high consuming, vulnerable users, such as disabled users, who would pay more. Therefore, retaining the current methodology protects vulnerable users with greater energy needs.