Energy: Standing Charges
The question
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
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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