Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what guidance her Department issues to companies that have difficulties paying the standing charges on their commercial energy tariffs.

The standing charge is matter for Ofgem. Ofgem launched a call for input in November 2023 looking at how standing charges are applied to energy bills and what alternatives could be considered. Ofgem is analysing the responses and will publish its response shortly.

Contract negotiations are a matter for businesses and their energy supplier. If a company is concerned about their ability to pay their energy bills, the Government suggests contacting their supplier as soon as possible. It may be possible to negotiate a new contract, including whether a contract without standing charges is available, or to agree a payment plan to help the company to better manage its energy payments.