Domestic Energy Bills Transparency 2025-04-29
2025-04-29
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Dr Evans questioned the transparency regarding standing charges in energy bills, noting that many consumers feel let down by a broken energy system.
When it comes to bills, the public understand what unit costs are, but not what standing charges are. When I raised this with the previous Government and Ofcom, they said that it was a complex matter, but what I am asking for is transparency, so that people understand how the charge is made up, and can then make a judgment on what it looks like. Will the Government commit to asking Ofgem to ensure that that information is included in the billing, so that we can see the breakdown of costs—how much is going on human resources and how much is going on the actual infrastructure and wires—so we know exactly what is going on in the energy market?
We support transparency. Ofgem publishes the breakdown of all costs within bills, but there is more that we need to do to ensure that consumers understand what is going on. Critically for us, we know that consumers are very frustrated about the standing charges, which is why we are committed to lowering them. As I have said, a consultation is under way around what we do with standing charges, which includes introducing a zero-standing-charge tariff. Within that, we will be considering options to increase transparency.
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Assessment & feedback
Did not commit explicitly to Ofgem ensuring the breakdown of costs in billing as requested by Dr Evans
Response accuracy