Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, if her Department will explore basing electricity standing charges paid by the farming sector upon an annualised average instead of peak demand to prevent (a) occasional and (b) seasonal high demand from disproportionately impacting bills and the cost of food production.

The Government recognises the importance of fair energy costs for farming and other businesses. Ofgem’s Cost Allocation and Recovery Review is considering how fixed energy-system costs, including those commonly recovered through standing charges, could be allocated across consumers, including businesses, in fairer and more efficient ways. The Government is working constructively with Ofgem to ensure that the longer-term recovery of energy-system costs is fair. Ofgem intends to consult on a direction of travel by the end of 2026.