Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, with reference to recommendation 12 of the First Report of the Energy Security and Net Zero Committee of Session 2022-23 on Preparing for the winter, HC 1720, published on 23 September 2023, whether he plans to implement the proposed changes to standing energy charges.

We know that too much of the burden of the bill is placed on standing charges. We are committed to lowering the cost of standing charges and have worked constructively with the regulator, Ofgem, on this issue.

On 20 February, Ofgem launched a consultation ‘Introducing a zero standing charge energy price cap variant’ - https://www.ofgem.gov.uk/consultation/introducing-zero-standing-charge-energy-price-cap-variant.

The consultation seeks views on the introduction of an option - within the price cap – for a tariff that does not have a standing charge, providing households with more choice over how they pay for their energy.

It also explores different ways a zero standing charge tariff could work, with options on a single unit rate, as well as block tariff options where the unit rates go up or down once a certain amount of energy is consumed.

The consultation closed on 20 March and we stand ready to continue work with Ofgem on this matter.