Electricity: Standing Charges

(asked on 14th June 2023) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential merits of introducing a single rate for electricity standing charges levied on households across the UK.


Answered by
Amanda Solloway Portrait
Amanda Solloway
Government Whip, Lord Commissioner of HM Treasury
This question was answered on 23rd June 2023

The standing charge includes some electricity distribution costs, which vary regionally to reflect the different costs of maintaining and upgrading the distribution network in different regions. Ofgem, as the independent energy regulator overseeing network charges, has previously reviewed regional differences in network charges. Its report found that there are advantages in charges that broadly reflect the costs that different users place on the system. In particular, this cost-reflective approach to network charging supports an efficient system where overall network costs are minimised for consumers across Great Britain.

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