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 standing charges issued by energy suppliers on low and middle-income households.

Although standing charges are a commercial matter for suppliers and are regulated by Ofgem under the price cap, the Government knows that too much of the burden of the bill is placed on them. Ofgem’s recently published update regarding reforming standing charges outlines 3 broad options it will take forward:

• Consulting on introducing a zero standing charge price cap tariff in the new year;
• Consulting on lowering standing charges by around £10 through a review of operating costs;
• Reviewing whether regional standing charge price differences should remain or not as part of a review of how system costs are recovered.

Ofgem’s review of standing charges considered the distributional impacts of potential changes to standing charges, and it can be found here:

https://www.ofgem.gov.uk/publications/standing-charges-update-our-review.

The changes Ofgem are seeking to introduce are aimed at giving consumers, including those who may be struggling with their bills, more control over their energy costs. Consumers will be able to choose the right tariff to suit their consumption pattern.