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1731117

registered interest
date	04/10/2024
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, whether his Department has had discussions with Ofgem on reducing electricity standing charges.
tabling member constituency	Bridgwater
tabling member printed	Sir Ashley Fox
uin	6875
answer	answer is ministerial correction date of answer 14/10/2024 answer text <p>Although standing charges are a commercial matter for suppliers, and are regulated by Ofgem, we know that too much of the burden of the bill is placed on them. The Government has worked constructively with the regulator on the issue of standing charges, and we are committed to lowering the cost of them.</p><p> </p><p>Ofgem’s recently published discussion paper sets out the options for how standing charges could be reduced, including by moving some supplier operational costs off standing charges onto the unit rate, increasing the variety of tariffs available for consumer in the market, and in the longer term, reviewing how system costs are allocated. Ofgem's publication can be found here: <a href="https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ofgem.gov.uk%2Fcall-for-input%2Fstanding-charges-domestic-retail-options&amp;data=05%7C02%7CParliamentary.PQ%40energysecurity.gov.uk%7Ca1024a8cd4554766aa6d08dcec50c7f8%7Ccbac700502c143ebb497e6492d1b2dd8%7C0%7C0%7C638645078903031939%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&amp;sdata=t2%2F4w51JwrO8BgX545RQsqDId3OquzRX6edWcuSRwHE%3D&amp;reserved=0" target="_blank">https://www.ofgem.gov.uk/call-for-input/standing-charges-domestic-retail-options</a>.</p> answering member constituency Peckham answering member printed Miatta Fahnbulleh question first answered 14/10/2024 13:07:52 answering member 5099
tabling member	5101

1731118

registered interest
date	04/10/2024
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, what his Department’s policy is on reducing electricity standing charges.
tabling member constituency	Bridgwater
tabling member printed	Sir Ashley Fox
uin	6876
answer	answer is ministerial correction date of answer 14/10/2024 answer text <p>Although standing charges are a commercial matter for suppliers, and are regulated by Ofgem, we know that too much of the burden of the bill is placed on them. The Government has worked constructively with the regulator on the issue of standing charges, and we are committed to lowering the cost of them.</p><p> </p><p>Ofgem’s recently published discussion paper sets out the options for how standing charges could be reduced, including by moving some supplier operational costs off standing charges onto the unit rate, increasing the variety of tariffs available for consumer in the market, and in the longer term, reviewing how system costs are allocated. Ofgem's publication can be found here: <a href="https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ofgem.gov.uk%2Fcall-for-input%2Fstanding-charges-domestic-retail-options&amp;data=05%7C02%7CParliamentary.PQ%40energysecurity.gov.uk%7Ccc5887f90b504d4d4d2f08dcec50ad15%7Ccbac700502c143ebb497e6492d1b2dd8%7C0%7C0%7C638645078449614795%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&amp;sdata=IWdRJbG7lRsd7lpCJ1WjBBaByKeRaKcvOQcAdtvLehY%3D&amp;reserved=0" target="_blank">https://www.ofgem.gov.uk/call-for-input/standing-charges-domestic-retail-options</a>.</p> answering member constituency Peckham answering member printed Miatta Fahnbulleh question first answered 14/10/2024 13:06:29 answering member 5099
tabling member	5101

1728679

registered interest
date	10/09/2024
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, whether he has had recent discussions with Ofgem on disparities in electricity standing charges between regions.
tabling member constituency	Inverness, Skye and West Ross-shire
tabling member printed	Angus MacDonald
uin	5221
answer	answer is ministerial correction date of answer 18/09/2024 answer text <p>Standing charges cover the costs energy suppliers take on to provide consumers with electricity, which vary by location. Ofgem’s recently published discussion paper sets out the options for how standing charges could be reduced, including by moving supplier operational costs off standing charges onto the unit rate, increasing the variety of tariffs available for consumer in the market, and in the longer term, reviewing how system costs are allocated.</p><p>My team and I are in regular contact with Ofgem to discuss a wide range of issues.</p> answering member constituency Peckham answering member printed Miatta Fahnbulleh question first answered 18/09/2024 13:16:41 answering member 5099
tabling member	5362

1698143

registered interest
date	22/03/2024
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, what recent discussions she has had with Ofgem on discrepancies in the cost of electricity standing charges across the country.
tabling member constituency	Rother Valley
tabling member printed	Alexander Stafford
uin	20118
answer	answer is ministerial correction date of answer 03/04/2024 answer text <p>DESNZ Ministers and officials regularly discuss with Ofgem issues relating to the energy retail market.</p><p> </p><p>Standing charges are a commercial matter for suppliers, although Ofgem regulates standing charges as they do with other elements of billing. This includes setting a cap on standing charges as part of the overall default tariff cap.</p><p> </p><p>The variance in standing charge is mainly due to regional differences in energy distribution costs. These costs reflect the expenses of maintaining and upgrading the distribution network in a specific area, and the number of consumers those costs are spread across.</p><p> </p><p>On 30 March, my Rt hon Friend the Secretary of State and I wrote to the Chief Executive of Ofgem, highlighting the importance of keeping standing charges as low as possible.</p> answering member constituency Derby North answering member printed Amanda Solloway grouped question UIN 20121 question first answered 03/04/2024 11:51:54 answering member 4372 label Biography information for Amanda Solloway
tabling member	4866 label Biography information for Alexander Stafford

1667592

registered interest
date	07/11/2023
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, with reference to the Answer of 23 October 2023 to Question 203412 on Electricity: Standing Charges, whether costs are calculated according to the location of where energy is (a) produced and (b) landed.
tabling member constituency	East Lothian
tabling member printed	Kenny MacAskill
uin	503
answer	answer is ministerial correction date of answer 13/11/2023 answer text <p>The way in which network charges are set, including questions about how network charges reflect where energy is produced and landed, is a matter for Ofgem, as the independent regulator.</p> answering member constituency Derby North answering member printed Amanda Solloway question first answered 13/11/2023 11:13:20 answering member 4372 label Biography information for Amanda Solloway
tabling member	4772 label Biography information for Kenny MacAskill

1666091

registered interest
date	19/10/2023
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 18 October 2023 to Question 201507 on Electricity: Standing Charges, what benefit OFGEM allocates to areas where energy is (a) produced and (b) landed.
tabling member constituency	East Lothian
tabling member printed	Kenny MacAskill
uin	203605
answer	answer is ministerial correction date of answer 26/10/2023 answer text <p>The way in which network charges are set, including questions about how network charges reflect where energy is produced and landed, is a matter for Ofgem, as the independent regulator.</p> answering member constituency Derby North answering member printed Amanda Solloway question first answered 26/10/2023 06:09:49 answering member 4372 label Biography information for Amanda Solloway
tabling member	4772 label Biography information for Kenny MacAskill

1665915

registered interest
date	18/10/2023
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 18 October 2023 to Question 201507 on Electricity: Standing Charges, whether grid connections in one regional area where the energy is transmitted to another are included in the costs of the (a) transmitting and (b) receiving area.
tabling member constituency	East Lothian
tabling member printed	Kenny MacAskill
uin	203412
answer	answer is ministerial correction date of answer 23/10/2023 answer text <p>Charging arrangements vary between transmission and distribution networks.</p><p> </p><p>Transmission networks enable the bulk transfer of electricity across the country from sources of generation to local electricity distribution networks, with most costs charged on a national basis.</p><p> </p><p>Transmission charges also feature a locational price signal, reflecting the costs that different users impose on the transmission network by connecting in different locations.</p><p> </p><p>Local distribution networks convey electricity within a region. Distribution charges vary by Distribution Network Operator region, reflecting the different costs of running each local distribution network in a specific region and the number of consumers those costs are spread across.</p> answering member constituency Derby North answering member printed Amanda Solloway question first answered 23/10/2023 16:22:03 answering member 4372 label Biography information for Amanda Solloway
tabling member	4772 label Biography information for Kenny MacAskill

1665916

registered interest
date	18/10/2023
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 18 October 2023 to Question 201507 on Electricity: Standing Charges, how OFGEM differentiate the costs of distribution to another region from the costs to consumers within a region.
tabling member constituency	East Lothian
tabling member printed	Kenny MacAskill
uin	203413
answer	answer is ministerial correction date of answer 23/10/2023 answer text <p>There are different costs for the high-voltage transmission network (between regions) and local low-voltage distribution networks.</p><p> </p><p>The only cost within the standing charge that varies by region relates to a component of the Distribution Network Operator (DNO) costs, reflecting the different costs of each local network and the number of consumers connected to it.</p><p> </p><p>Outside the standing charge, transmission network costs feature a price signal (price per unit) which reflects the costs of connection between different regions.</p><p> </p><p>Scotland is a net exporter of electricity, so consumers incur lower transmission charges than most of their counterparts in England and Wales.</p> answering member constituency Derby North answering member printed Amanda Solloway question first answered 23/10/2023 16:20:58 answering member 4372 label Biography information for Amanda Solloway
tabling member	4772 label Biography information for Kenny MacAskill

1663653

registered interest
date	13/10/2023
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, what discussions she has had with Ofgem on the criteria used to decide the the regional rates and standing charges for electricity.
tabling member constituency	East Lothian
tabling member printed	Kenny MacAskill
uin	201507
answer	answer is ministerial correction date of answer 18/10/2023 answer text <p>Ofgem have explained that electricity network charges vary by region to reflect the costs of running the network in that area and the number of consumers that those costs are spread over. Ofgem, as the independent energy regulator, is responsible for overseeing the allocation of network charges to network users, and the standing charge which includes some of the distribution costs. Ofgem has previously reviewed the regional differences in network charges, and it concluded that the current cost-reflective approach has advantages and supports an efficient system where overall network costs are minimised for consumers.</p> answering member constituency Derby North answering member printed Amanda Solloway question first answered 18/10/2023 08:10:13 answering member 4372 label Biography information for Amanda Solloway
tabling member	4772 label Biography information for Kenny MacAskill

1644817

registered interest
date	14/06/2023
answering body	Department for Energy Security and Net Zero
answering dept id	215
answering dept short name	Energy Security and Net Zero
answering dept sort name	Energy Security and Net Zero
hansard heading	Electricity: Standing Charges
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential merits of introducing a single rate for electricity standing charges levied on households across the UK.
tabling member constituency	Ceredigion
tabling member printed	Ben Lake
uin	189721
answer	answer is ministerial correction date of answer 23/06/2023 answer text <p>The standing charge includes some electricity distribution costs, which vary regionally to reflect the different costs of maintaining and upgrading the distribution network in different regions. Ofgem, as the independent energy regulator overseeing network charges, has previously reviewed regional differences in network charges. Its report found that there are advantages in charges that broadly reflect the costs that different users place on the system. In particular, this cost-reflective approach to network charging supports an efficient system where overall network costs are minimised for consumers across Great Britain.</p> answering member constituency Derby North answering member printed Amanda Solloway question first answered 23/06/2023 12:45:13 answering member 4372 label Biography information for Amanda Solloway
tabling member	4630 label Biography information for Ben Lake