PARLIAMENTARY WRITTEN QUESTION
Energy: Standing Charges (12 April 2024)

Ofgem launched a call for input on standing charges looking at how it is applied to energy bills and what alternatives could be considered. Ofgem is currently analysing the responses and 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 and upgrading the distribution network in a specific area, and the number of consumers those costs are spread across.

On 30 March, my Rt hon Friend the Secretary of State and I wrote to the Chief Executive of Ofgem, highlighting the importance of keeping standing charges as low as possible.