Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the impact of recent increases in electricity standing charges for business customers in Cumbria on businesses; and what steps he is taking to ensure charges are proportionate.

Levels of standing charges in the non-domestic market are a commercial decision for suppliers, who typically set their prices based on network charge differences, leading to regional variations in electricity standing charges.

Nonetheless, the Government understands that for too many consumers, too much of the burden of the bill is placed on standing charges and is committed to lowering the cost of standing charges. Ofgem have recently launched a Cost Allocation Recovery Review to review how ‘fixed’ costs should be recovered in the future energy system. This includes whether costs could be recovered from consumers, including businesses in more progressive and fairer ways.