Electricity: Standing Charges
The question
To ask the Secretary of State for Energy Security and Net Zero, what his Department’s policy is on reducing electricity standing charges.
Answered by Miatta Fahnbulleh
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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