Hendry raises Highlands standing charges with Ofgem
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The strath's MP Drew Hendry teamed up with Brendan O'Hara, MP for Argyll and Bute, earlier today to meet with energy regulator Ofgem for talks about the Highland Energy Rebate Campaign.
The meet followed his leading a debate on the issue in Parliament earlier this month.
At the meeting, he raised the high standing charges that people in the Highlands and Islands face.
Mr Hendry highlighted the fact that his constituents pay over 50% higher electricity standing charges than charges in London, despite having higher bills due to a colder climate and living in an area that generates more wind and hydro power than anywhere else in the UK.
The standing charge - the charge paid every day regardless of how much energy is used - is currently under review by Ofgem.
Energy regulator Ofgem is an independent government body who are responsible for setting the level of standing charges within the price cap. The price cap limits how much energy suppliers can then charge households.
Mr Hendry launched the Highland Energy Rebate campaign in January as part of his ongoing work to tackle unfair energy pricing. The proposal advocates for a rebate scheme for Highland residents who contribute significantly to the UK's renewable energy production. It targets the imbalance in energy costs, particularly for those in off-grid areas who cannot access cheaper energy alternatives.
Mr Hendry has welcomed the review into standing charges and is calling on the regulator to scrap standing charges completely: “Ofgem has an opportunity to right this wrong in their review of standing charges.
"I met with them today to ensure they understand how these high standing charges impact households, unfairly penalising people on lower incomes and those looking to use less energy.”
“It is vital that we see fair energy pricing implemented as soon as possible. The inequity is clear: people living in the Highlands and Islands face disproportionately high bills and fuel poverty despite living in an energy-rich region that produces up to six times the energy it uses through renewable sources.
“It was an important step to take this issue directly to Ofgem, but there is an urgent need to address this inequality and create an energy market based on fairness. Introducing a Highland Energy Rebate alongside scrapping standing charges should be at the very top of the list.”
Ofgem is currently still reviewing standing charges and is yet to release a conclusive report on their findings. The internal review comes after the charge more than doubled over the past two years.
The Highland Energy Rebate campaign, which has gained widespread support from other stakeholders across the Highlands and Islands region, is ongoing.
More info on the campaign here
