Energy: Prices

(asked on 17th February 2023) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, if he will bring forward proposals to decouple the pricing of the standing charge from energy prices.


Answered by
Graham Stuart Portrait
Graham Stuart
Minister of State (Department for Energy Security and Net Zero)
This question was answered on 24th February 2023

The setting of energy tariffs, including the standing charge is a commercial matter for individual energy suppliers. The standing charge is decoupled from energy unit price. It is a flat daily rate that reflects the costs energy suppliers incur to provide a live gas or electricity supply, regardless of a consumer’s usage, and includes, amongst other things, transmission and distribution costs. Under the Energy Price Guarantee, average standing charges for customers on default tariffs remain capped in line with the levels set by Ofgem.

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