Energy: Standing Charges

Department for Energy Security and Net Zero written question – answered at on 23 April 2024.

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Photo of Therese Coffey Therese Coffey Conservative, Suffolk Coastal

To ask the Secretary of State for Energy Security and Net Zero, what steps her Department is taking with OFGEM to reduce daily standing charges for gas and electricity in Suffolk.

Photo of Amanda Solloway Amanda Solloway Government Whip, Lord Commissioner of HM Treasury, Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

In November, Ofgem announced a review into standing charges, exploring how it is applied to energy bills and potential alternatives. The review had now closed and Ofgem is currently analysing the input it has received. Ofgem will publish its response in due course.

The variance in standing charge is mainly due to regional differences in energy distribution costs. These costs reflect the expenses of maintaining a live supply in a specific area, and the number of consumers those costs are spread across.

On 30 March, I wrote to Ofgem, highlighting the importance of keeping standing charges as low as possible.

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