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 impact of changes in energy suppliers standing charges on the use of energy in low-income households.

How suppliers choose to set the standing charge and unit rate is a commercial decision. However, the default tariff cap, set by Ofgem, puts a limit on the unit rates and standing charges that suppliers can charge for their default tariffs.

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.