ADA responds to Ofgem’s Standing charges – call for input


ADA responds to Ofgem’s Standing charges – call for input

 

Consultation Standing charges – call for input
By Ofgem
Closed 19 January 2024
Summary The standing charge is a cost that is included in each electricity and gas bill. It is a cost set by the supplier. Each supplier will charge energy users this cost each day, even if they do not use any energy on that day. The amount paid depends upon the supplier and the location within England, Scotland or Wales.

The charge covers the cost to maintain the energy supply network, take meter readings, and support government social schemes, for example helping people that cannot afford energy, and environmental schemes.

ADA’s response focuses on the impacts upon internal drainage boards (IDBs) who are local public authorities that work to reduce the risk of flooding and carefully manage water levels across lowland England. The many IDBs that operate hundreds of pumping stations to reduce the risk of flooding have seen very large increases in their standing charges for electricity supply to these sites since the implementation of Ofgem’s Targeted Charging Review. These increasing costs have put substantial pressures upon the finances of IDBs, and by extension the local agricultural land managers and local authorities that fund them.

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