Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy that all energy suppliers must offer a no standing charge tariff to residential customers.

The setting of tariffs is a commercial decision for energy suppliers. Since 2016, suppliers have been able to offer a greater range of tariffs to accommodate different customer needs, including tariffs with a low or even zero standing charge.

The payment of a standing charge reflects the fixed costs of providing and maintaining supply, regardless of energy usage, including meter rental, meter readings, accounting and billing and maintenance of the energy network. Tariffs with a low or zero standing charge attract a much higher unit rate to ensure these fixed supply costs are met.