Energy: Standing Charges

(asked on 21st March 2024) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps her Department is taking to reduce the daily standing charges for gas and electricity in Ofgem's (a) Yorkshire and (b) Northern regions.


Answered by
Amanda Solloway Portrait
Amanda Solloway
Government Whip, Lord Commissioner of HM Treasury
This question was answered on 2nd April 2024

DESNZ Ministers and officials regularly discuss with Ofgem issues relating to the energy retail market.

Standing charges are a commercial matter for suppliers, although Ofgem regulates standing charges as they do with other elements of billing. This includes setting a cap on standing charges as part of the overall default tariff cap.

The variance in standing charge is mainly due to regional differences in energy distribution costs. These costs reflect the expenses of maintaining and upgrading the distribution network in a specific area, and the number of consumers those costs are spread across. On 30 March, my Rt hon Friend the Secretary of State and I wrote to the Chief Executive of Ofgem, highlighting the importance of keeping standing charges as low as possible.

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