Energy: Standing Charges

(asked on 17th November 2025) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential impact of lower standing charge tariffs on households in the Scottish Highlands.


Answered by
Martin McCluskey Portrait
Martin McCluskey
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 25th November 2025

The Government knows that, for many consumers, too much of the burden of the energy bill is placed on standing charges. We are committed to lowering the cost of standing charges and are working constructively with Ofgem on this issue.

Ofgem have been working to ensure that domestic consumers, in the Scottish Highlands and across Great Britain, can choose tariffs with lower standing charges. You can read about this here:
Requirement to offer lower standing charge tariffs | Ofgem

Ofgem have also been reviewing how ‘fixed’ costs, which tend to be funded through standing charges, should be recovered in the future energy system. Through the Cost Allocation and Recovery Review (CARR), Ofgem will consider how options for allocating and recovering costs in a fairer and more efficient way. This includes considering whether ‘fixed’ costs should vary across regions or whether they should be standard across Great Britain.

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