Energy: Standing Charges
The question
To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to (a) abolish and (b) reform the standing charge.
Answered by Miatta Fahnbulleh
The Government knows that, for many consumers, too much of the burden of the bill is placed on standing charges. We are committed to lowering the cost of standing charges and have worked constructively with the regulator, Ofgem, on this issue.
Firstly, Ofgem have been working to ensure that domestic consumers can choose tariffs with low or no standing charges Ofgem took a further step towards this goal this week, announcing proposals to require suppliers to offer their customers low or no standing charge tariffs from early 2026.
Secondly, Ofgem have been reviewing how ‘fixed’ costs, which tend to be funded through standing charges, should be recovered in the future energy system. This includes whether those fixed costs could be recovered in more progressive ways, and we are working closely with the regulator on this.
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