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Make your thoughts heard in energy standing charges review

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Monday, 20 November, 2023
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Ynys Môn MP Virginia Crosbie is urging residents, charities, and businesses to take part in a consultation on gas and electricity standing charges. 


Regulator Ofgem is looking for views on the charges - that have doubled over the last two years - and how to change the system.


Customers pay a fixed daily charge to energy companies to cover the costs of connecting to a supply, maintenance and if suppliers fail. 


However, there has been concern they have risen substantially and how they are impeding the ability of customers to reduce their bills, especially if they have paid for energy saving measures like insulation.


An average household pays 53p a day for electricity and 30p a day for gas. This adds around £300 to the total bill each year.


“I would urge everyone on the island who is concerned about the rise in standing charges to get involved in the consultation to make their views known on what should change,” said Virginia.


“The problem I see with these rising charges is that households or businesses that spend money on insulation or new windows, for example, to save money on their energy bill are not benefiting because they must pay the standing charge regardless.


“This does run the risk of people not investing in energy saving measures because it is not worth it and this would impede the country’s net zero drive."


The MP explained: “It may be fairer for people to only pay for energy used. 


“I do expect a higher unit cost for gas and electricity to cover what the standing charge did pay for and I am sure Ofgem would like to hear what people would think of this approach.”


She added there would need to be safeguards for anyone who needed to use more energy for medical reasons, if standing charges were scrapped.


Views can be submitted by email to [email protected] until 19th January.

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Virginia Crosbie Former Conservative Member of Parliament for Ynys Môn

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