Electricity: Standing Charges

(asked on 13th October 2023) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what discussions she has had with Ofgem on the criteria used to decide the the regional rates and standing charges for electricity.


Answered by
Amanda Solloway Portrait
Amanda Solloway
Government Whip, Lord Commissioner of HM Treasury
This question was answered on 18th October 2023

Ofgem have explained that electricity network charges vary by region to reflect the costs of running the network in that area and the number of consumers that those costs are spread over. Ofgem, as the independent energy regulator, is responsible for overseeing the allocation of network charges to network users, and the standing charge which includes some of the distribution costs. Ofgem has previously reviewed the regional differences in network charges, and it concluded that the current cost-reflective approach has advantages and supports an efficient system where overall network costs are minimised for consumers.

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