Electricity: Standing Charges

(asked on 4th October 2024) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether his Department has had discussions with Ofgem on reducing electricity standing charges.


Answered by
Miatta Fahnbulleh Portrait
Miatta Fahnbulleh
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 14th October 2024

Although standing charges are a commercial matter for suppliers, and are regulated by Ofgem, we know that too much of the burden of the bill is placed on them. The Government has worked constructively with the regulator on the issue of standing charges, and we are committed to lowering the cost of them.

Ofgem’s recently published discussion paper sets out the options for how standing charges could be reduced, including by moving some supplier operational costs off standing charges onto the unit rate, increasing the variety of tariffs available for consumer in the market, and in the longer term, reviewing how system costs are allocated. Ofgem's publication can be found here: https://www.ofgem.gov.uk/call-for-input/standing-charges-domestic-retail-options.

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