Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what recent assessment he has made of the potential impact of rising standing charges on (a) independent pubs and (b) other low-consumption hospitality venues; and what steps he is taking to ensure that fixed network costs do not disproportionately affect small businesses with seasonal and variable energy use.

The Government recognises that standing charges can be a significant concern for some businesses, including those in the hospitality sector. Network charges are designed to be cost-reflective, meaning they reflect the costs imposed on the network by different users.

Ofgem is conducting a holistic review of how energy system costs, including network costs, should be paid for in the future, as part of its Cost Allocation and Recovery Review (CARR). The most recent update as to progress with this review can be found here: Energy system cost allocation and recovery review - Ofgem - Citizen Space.

Alongside this, Ofgem’s work on the non-domestic market has highlighted the need to improve pricing transparency, and the Government has acted to strengthen protections for business consumers—such as measures to improve how businesses are supported in the market, including through action on third‑party intermediaries—so businesses can better understand what they are being charged and access better value contracts.