Electricity and Natural Gas: Standing Charges

(asked on 18th October 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 recent discussions she has had with Ofgem on the adequacy of regulation for (a) electricity and (b) gas standing charges.


Answered by
Amanda Solloway Portrait
Amanda Solloway
Government Whip, Lord Commissioner of HM Treasury
This question was answered on 24th October 2023

DESNZ Ministers regularly meet with Ofgem to discuss issues relating to the energy retail market.

The setting of the standing charge is a commercial matter for suppliers. It reflects the ongoing costs that suppliers incur to provide a live supply of energy to individual properties, regardless of how much energy is consumed.

The standing charge includes transmission and distribution costs and the Supplier of Last Resort levy.

The allocation of these costs is regulated by Ofgem.

The energy price cap also set by Ofgem limits what suppliers can charge for the standing charge to consumers on default tariffs.

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