Asked by: Taiwo Owatemi (Labour - Coventry North West)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps her Department is taking to reduce daily standing charges for gas and electricity in (a) Coventry and (b) the Midlands.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
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.
Asked by: Taiwo Owatemi (Labour - Coventry North West)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to compel energy providers to maintain cheaper tariffs, including night rates in the next year.
Answered by Graham Stuart
The setting of tariffs is a commercial matter for individual energy suppliers. The Government’s Energy Price Guarantee [EPG] limits the unit price households pay on gas and electricity, including those on tariffs with separate rate for day and night, bringing a typical household’s energy bill in Great Britain down to the equivalent of around £2,500 a year and a saving of £900 this winter.
From April 2023, a typical household’s energy bill is expected to be up to £3,000 a year.