Electricity: Standing Charges
The question
To ask the Secretary of State for Energy Security and Net Zero, whether he has had recent discussions with Ofgem on disparities in electricity standing charges between regions.
Answered by Miatta Fahnbulleh
Standing charges cover the costs energy suppliers take on to provide consumers with electricity, which vary by location. Ofgem’s recently published discussion paper sets out the options for how standing charges could be reduced, including by moving 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.
My team and I are in regular contact with Ofgem to discuss a wide range of issues.
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