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Effect of standing charges for energy on vulnerable consumers

EDM (Early Day Motion) 1152: tabled on 31 March 2022

Tabled in the 2021-22 session.

This motion has been signed by 15 Members. It has not yet had any amendments submitted.

Motion text

That this House acknowledges the increase in the energy price cap, which will see household energy costs rising exponentially from 1 April; notes the standing charges applied daily to consumers is also rising, by at least 80 per cent in most cases; understands that this charge is applied regardless of the amount of power used, meaning that consumers have no control over this aspect of their increasing energy bills; believes that much of the increase in standing charges is as a result of the failure of 30 energy suppliers in 2020, with the cost of guaranteeing customers’ balances being added to the bills of all households; condemns the negligent policymaking and bad practice within the industry which has resulted in many energy suppliers going out of business; recognises that these increases will impact the poorest and most vulnerable the most, with prepayment customers facing the biggest increases; further notes the discriminatory regional variations in standing charges, with consumers in Scotland paying among the highest charges despite being an exporter of energy to the rest of the UK; and urges the UK Government to either cap or scrap these charges to ensure the poorest customers are not paying the most for the mistakes made in regulating the energy market.