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Written question asked by Mick Whitley (Labour) on Monday, 18 March 2024, in the House of Commons. It was due for an answer on Monday, 25 March 2024 (named day). It was answered by Amanda Solloway (Conservative) on Monday, 25 March 2024 on behalf of the Department for Energy Security and Net Zero.

Energy: Standing Charges

Question

To ask the Secretary of State for Energy Security and Net Zero, whether her Department has had discussions with energy suppliers on taking steps to reduce the daily standing charges for gas and electricity in (a) North Wales and (b) Merseyside to at least the national average.

Answer

The regulation of standing charges is a matter for Ofgem. The cost of distributing electricity varies regionally, mirroring differences in distribution expenses across the country. These disparities stem from maintaining and upgrading distribution networks in specific areas and the number of consumers sharing these costs. Consequently, less densely populated and remote regions incur higher operational expenses.

Ofgem launched a call for input on standing charges, which closed in January 2024, looking at how they are applied to energy bills and what alternatives could be considered. I am supportive of Ofgem’s decision to gather information and evidence on the current standing charge model. Ofgem are currently assessing the responses received and will publish a decision in due course here: www.ofgem.gov.uk/publications/launch-review-standing-charges-energy-bills.

Secondary information

Type
Written question
Reference
19183
Session
2023-24
Subjects
Energy Merseyside Standing charges North Wales
Link
View this Written question on www.parliament.uk