Small Businesses: Energy
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the impact of standing charges on the total energy costs of small businesses.
Answered by Chris McDonald
The Government recognises that standing charges can be a significant concern for some businesses.
Ofgem is conducting a holistic review of how energy system costs, including network costs, should be paid for in the future, as part of its Cost Allocation and Recovery Review (CARR). The most recent update as to progress with this review can be found here: Energy system cost allocation and recovery review - Ofgem - Citizen Space.
Alongside this, Ofgem’s work on the non-domestic market has highlighted the need to improve pricing transparency, and the Government has acted to strengthen protections for business consumers—such as measures to improve how businesses are supported in the market, including through action on third‑party intermediaries—so businesses can better understand what they are being charged and access better value contracts.
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