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<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>
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