Commons Sense

House of Commons · Ministers' Questions

Energy Standing Charges

Tuesday 27 February 2024 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Ministerial discussions with energy suppliers and Ofgem have taken place to urge support for businesses and to keep energy bills down.
  • The Minister stated that the Ombudsman's ability to assist small businesses will be launched to address customer issues.
  • Ofgem has launched a call for input on standing charges, which has received over 40,000 responses as of January 19, 2024.

Topics (select to filter)

Questions & Answers

Q1 Grahame Morris Lab Easington
Energy
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.

Question

Whether she has had discussions with energy providers on reducing energy standing charges for charities and businesses.

Answer from Amanda Solloway

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.

Partly answered

Not addressed: Did not specify whether they discussed reducing standing charges with providers specifically.

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Q2 Grahame Morris Lab Easington
Energy
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.

Question

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?

Answer from Amanda Solloway

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.

Partly answered

Not addressed: Did not address why companies delay addressing issues or whether Ofgem is failing.

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Q3 Dave Doogan SNP Angus and Perthshire Glens
Energy
Context

Electricity standing charges are increasing significantly, impacting the incentive to reduce usage.

Question

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?

Answer from Amanda Solloway

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.

Partly answered

Not addressed: Did not provide an assessment on the savings related to carbon emissions and infrastructure needs.

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