Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, if his Department will make an assessment of the potential impact of capacity charges on (a) small and (b) medium sized enterprises.

By law, energy network charging arrangements are a matter for Ofgem as the independent regulator. Ofgem has identified the need for significant investment in new electricity network capacity to transform Great Britain’s electricity networks to enable clean power and economic growth.

As part of its work to determine the next set of price controls for the electricity transmission and gas transmission and distribution sectors on 4 December, Ofgem conducted analysis of the overall economic impact, which includes an assessment of the direct effects on network charges for both domestic and non-domestic customers. The full impact assessment can be found here: RIIO-3 Final Determinations – Impact Assessment

The Government and Ofgem are committed to ensuring that energy costs are recovered fairly, including considering the ongoing role of standing charges.