PARLIAMENTARY WRITTEN QUESTION
Renewable Energy: Standing Charges (28 October 2024)

To ask the Secretary of State for Energy Security and Net Zero, if he will make an assessment of the potential merits of reviewing levels of standing charges paid by consumers who mainly use energy generated by their own solar panels and wind turbines.

Asked by:
Sarah Hall (Labour)

Standing charges cover the costs energy suppliers take on to provide consumers with electricity, which vary by location, and although these levies are a commercial matter for suppliers, and are regulated by Ofgem, we know that too much of the burden of the bill is placed on them.

The Government has worked constructively with the regulator on the issue of standing charges, and we are committed to lowering the cost of them. Ofgem’s recently published discussion paper sets out the options for how standing charges could be reduced, including by moving some supplier operational costs off standing charges onto the unit rate, increasing the variety of tariffs available for consumer in the market, and in the longer term, reviewing how system costs are allocated. Ofgem's publication can be found here: https://www.ofgem.gov.uk/call-for-input/standing-charges-domestic-retail-options.

We will continue to support Ofgem in this work and ensure that standing charges are reduced.

Answered by:
Miatta Fahnbulleh (Labour)
4 November 2024