Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether her Department has had discussions with energy suppliers on taking steps to reduce the daily standing charges for gas and electricity in (a) North Wales and (b) Merseyside to at least the national average.

The regulation of standing charges is a matter for Ofgem. The cost of distributing electricity varies regionally, mirroring differences in distribution expenses across the country. These disparities stem from maintaining and upgrading distribution networks in specific areas and the number of consumers sharing these costs. Consequently, less densely populated and remote regions incur higher operational expenses.

Ofgem launched a call for input on standing charges, which closed in January 2024, looking at how they are applied to energy bills and what alternatives could be considered. I am supportive of Ofgem’s decision to gather information and evidence on the current standing charge model. Ofgem are currently assessing the responses received and will publish a decision in due course here: www.ofgem.gov.uk/publications/launch-review-standing-charges-energy-bills.