Skip to main content

Written question asked by Baroness Altmann (Conservative) on Monday, 30 January 2023, in the House of Lords. It was due for an answer on Monday, 13 February 2023. It was answered by Lord Callanan (Conservative) on Wednesday, 8 February 2023 on behalf of the Department for Business, Energy and Industrial Strategy.


Energy: Standing Charges

Question

To ask His Majesty's Government what assessment they have made of the impact of increasing the retail customer energy standing charge; and what proportion of the increase in the standing charge is due to the need to compensate the customers of failed energy firms.

Answer

The maximum standing charge is limited by the Ofgem price cap. Ofgem reviewed the components of the standing charge in the Summer of 2022 and concluded that maintaining the existing methodology would protect consumers with the greatest energy needs.

Standing charges vary by region, billing method and energy type and range from approximately £99 to £205. In figures published by Ofgem in November 2022, Supplier of Last Resort costs (for those customers whose provider ceases trading) accounts for £61 in the average customer’s energy bill.


Secondary information

Type
Written question
Reference
HL5172
Session
2022-23
Subjects
Compensation Companies Energy Insolvency Standing charges
Link
View this Written question on www.parliament.uk