Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 27 April to Question 155863, on Energy: Standing Charges, what recent assessment he has made of the role of Ofgem in relation to the way in which suppliers set the standing charge and unit rate in those cases where the price cap is not triggered; and what recent discussions he has had with (a) energy suppliers and (b) Ofgem about the apportionment of energy bills between standing charges and unit rates.

For tariffs that are caught by the price cap, and for tariffs which are not caught by the cap, suppliers can decide how they structure their standing charges. Ofgem requires energy suppliers to separate out the standing charge from the energy unit rate so consumers can see what the different charges amount to.

The Government has regular discussions with energy suppliers and Ofgem on a range of issues, including standing charges.

Ofgem is currently consulting on a review of part of the standing charge in relation to the Supplier of Last Resort (SoLR) costs: https://www.ofgem.gov.uk/publications/open-letter-review-how-costs-supplier-failure-are-recovered.