Standing Charges : Domestic Retail Options – Call For Input

Consultation Response

Credits — Gordon Morgan

Overview

A response to Ofgem’s call for input into reform of electricity standing charges.

Common Weal Energy Working Group are pleased to respond to Ofgem’s consultation on Standing Charges.

We are concerned that the actual daily standing charge by suppliers varies according to customers location across the country. We would like to see DUoS charges standardised across the UK so that Scottish consumers are not discriminated against. We are happy that Ofgem recognise this as an anomaly, however, are disappointed it is not being prioritised in this standing charges review. However, if the standing charge reduction was around £119 per year (approximately £0.32 per day) it could be addressed and DUoS charges standardised across the country.

The anomaly is all the more stark as the cost of upgrading the Transmission Grid is applied evenly through TNUoS charges across all consumers in GB. We would note that this major network upgrade, reputed set to cost £70Bn, is mainly needed to supply electricity generated in Scotland to much of England. We also must stress that making the transition to Net Zero cannot all be directly paid by consumers of electricity. Government Tax and Borrowing for Investment must pay a part. We would argue that much of the cost of upgrading the Transmission Grid should be paid for from National Debt thus lowering the largest element of electricity standing charges and indeed lowering overall consumer electricity costs.