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Energy Supply: Prices

Question for Department for Business, Energy and Industrial Strategy

UIN 56797, tabled on 15 October 2021

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy that all energy suppliers must offer a no standing charge tariff to residential customers.

This answer is the replacement for a previous holding answer.

Answered on

22 October 2021

The setting of tariffs is a commercial decision for energy suppliers. Since 2016, suppliers have been able to offer a greater range of tariffs to accommodate different customer needs, including tariffs with a low or even zero standing charge.

The payment of a standing charge reflects the fixed costs of providing and maintaining supply, regardless of energy usage, including meter rental, meter readings, accounting and billing and maintenance of the energy network. Tariffs with a low or zero standing charge attract a much higher unit rate to ensure these fixed supply costs are met.

Named day
Named day questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.