Electricity: Prices
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of regional variations in household electricity costs.
Answered by Department for Energy Security and Net Zero
The Government recognises that electricity costs vary by region. Electricity suppliers typically set their prices based on network charge differences, leading to regional variations in tariffs. The independent industry regulator Ofgem sets different price cap limits across regions to reflect differences in network costs for maintaining infrastructure.
The Government is committed to ensuring bills are fair and affordable, while maintaining a secure and resilient energy system. Ofgem are also reviewing how ‘fixed’ costs, which tend to be funded through standing charges, should be recovered in the future energy system. Ofgem plan to consult further this year.
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