Energy: Standing Charges

(asked on 17th April 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 with OFGEM to reduce daily standing charges for gas and electricity in Suffolk.


Answered by
Amanda Solloway Portrait
Amanda Solloway
This question was answered on 23rd April 2024

In November, Ofgem announced a review into standing charges, exploring how it is applied to energy bills and potential alternatives. The review had now closed and Ofgem is currently analysing the input it has received. Ofgem will publish its response in due course.

The variance in standing charge is mainly due to regional differences in energy distribution costs. These costs reflect the expenses of maintaining a live supply in a specific area, and the number of consumers those costs are spread across.

On 30 March, I wrote to Ofgem, highlighting the importance of keeping standing charges as low as possible.

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