Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of why households in the Merseyside and Northern Wales electricity region face the highest standing charge under the energy price cap; and what steps she is taking to ensure that regional differences in standing charges do not disproportionately disadvantage households in areas that contribute to the UK's energy generation.

Regional variations in electricity standing charges arise from differences in distribution costs, including the costs of maintaining and upgrading local networks and the number of consumers across whom those costs are spread.

The Government recognises concerns about regional disparities, including in North Wales and Merseyside, and that too much of the burden of energy bills is placed on standing charges.

The Government is working closely with Ofgem through its Cost Allocation and Recovery Review, which is considering how fixed system costs, including network costs commonly recovered through standing charges, should be allocated across consumers. This includes whether costs could be recovered in fairer and more progressive ways and consideration of regional differences. The Government will continue to work with Ofgem to ensure future charging arrangements are fair and do not disproportionately disadvantage consumers.