Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, if she will have discussions with Ofgem on ensuring that energy consumers who are not in debt are not financially disadvantaged as a result of energy companies minimising exposure to their commercial risk of bad debt through higher standing charges.

The setting of standing charges is a commercial matter for individual suppliers, within the context of Ofgem regulating aspects of standing charges. This includes setting a cap as part of the overall default tariff cap, thus ensuring millions of households pay a fair price for their energy.

Ofgem launched a call for input on standing charges, looking into how they are applied to energy bills and what alternatives could be considered, which closed in January 2024. I am supportive of Ofgem’s decision to gather evidence on the current standing charge model and will seek updates in due course. Moreover, my Rt Hon Friend the Secretary of State and I wrote a joint letter to Ofgem in March highlighting the Government’s expectation that standing charges should be kept as low as possible.