Energy Standing Charges 2024-02-27
2024-02-27
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The setting of tariffs, including standing charges, in the non-domestic market is a commercial matter for suppliers. The Secretary of State and Minister have met with suppliers and Ofgem to urge them to support businesses.
Whether she has had discussions with energy providers on reducing energy standing charges for charities and businesses.
The setting of tariffs, including standing charges, in the non-domestic market is a commercial matter for suppliers. The Secretary of State and I have met suppliers and Ofgem multiple times over the past year to urge them to support businesses and keep bills down, and Ofgem has recently called for input and views on standing charges.
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Assessment & feedback
Did not specify whether they discussed reducing standing charges with providers specifically.
Response accuracy
Q2
Partial Answer
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Context
East Durham Trust in the constituency has been in dispute with its supplier, TotalEnergies, after an increase of over 4,000% in standing charges. The issue was resolved through complaints to various authorities.
Can the Minister explain why energy companies and distributors do not seek to address customer issues sooner, and does she agree that we have a failing regulator and an energy system that seeks to maximise profits?
I am pleased to hear from the hon. Gentleman that the situation has been resolved, and I suggest that exactly the right recourse is to contact the relevant parties. We are now launching the ability of the ombudsman to help small businesses as well, which reassures me that such cases will be seen to more quickly and resolved sooner.
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Assessment & feedback
Did not address why companies delay addressing issues or whether Ofgem is failing.
Response accuracy
Q3
Partial Answer
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Context
Electricity standing charges are increasing significantly, impacting the incentive to reduce usage.
What assessment has the Minister made of the savings that would be made in terms of both carbon emissions and the need for vast pieces of new energy infrastructure if the standing charges were rolled into unit prices?
Standing charges, as I mentioned, are a matter for Ofgem. However, Ofgem has listened to public sentiment, and it has recently launched a call for input on standing charges. My understanding is that to date, it has had over 40,000 responses. The call for input closed on 19 January, and Ofgem's paper aims to ensure a greater understanding of how standing charges are applied to energy bills and what alternatives should be considered.
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Assessment & feedback
Did not provide an assessment on the savings related to carbon emissions and infrastructure needs.
Response accuracy