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, if she will hold discussions with Ofgem on ensuring that energy consumers who are not in debt are not financially disadvantaged by energy companies minimising exposure to bad debt through higher standing charges.


Answered by
Amanda Solloway Portrait
Amanda Solloway
Government Whip, Lord Commissioner of HM Treasury
This question was answered on 24th April 2024

Minsters and Officials have regular meetings with Ofgem to discuss a wide range of issues, including standing charges.

Ofgem recently sought views on standing charges and is currently analysing the responses. Further information is available at https://www.ofgem.gov.uk/publications/standing-charges-call-input .

It is not uncommon in consumer markets for companies to recover costs, such as customer debt, from their wider customer base. Otherwise, it could risk the company being inadequately funded for the services they provide, including help and support to vulnerable customers. Without adequate funding, it could also risk suppliers going insolvent, giving rise to potentially significant additional costs of a supplier of last resort or special administration regime.

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