North Wales MS and Chair of the Senedd Cross-Party Group (CPG) on Fuel Poverty and Energy Efficiency, Mark Isherwood, is concerned that households in North Wales are still paying the highest Standing Charges in the UK for energy and has raised the matter in the Senedd with the Cabinet Secretary for Social Justice.
He said the matter was discussed at last week’s meeting of the CPG, when he noted that North Wales was an energy producer and exporter, and asked Ofgem, the energy regulator for Great Britain, whether they are factoring into their work on regional variation how regions with the highest Standing Charges, which are also net energy producers, can benefit from that in their bills.
He asked the Cabinet Secretary what consideration she has given to Ofgem’s response that “at the moment, you get no regional benefit on wholesale, but you get a regional cost on the network”.
He said:
“As we discussed at last week's meeting of the Cross-Party Group on Fuel Poverty and Energy Efficiency, North Wales and Merseyside households still pay the highest Standing Charges in the UK for energy, no matter how much they use.
“After you had to leave the meeting, Ofgem told us that this is due in part to the density of the network, and in part to the design features of North Wales, and that this regional variation was something they were looking at.
“After noting that North Wales was an energy producer and exporter, I asked Ofgem whether they're factoring into this how regions with the highest Standing Charges, which are also net energy producers, can benefit from that in their bills.
“In your discussions with Ofgem, what consideration will you therefore give to their response that, ‘at the moment, you get no regional benefit on wholesale but you get a regional cost on the network? I think’ they said, 'you know we would look to try and bring those two decisions into line with each other’?”
Responding, the Cabinet Secretary thanked Mr Isherwood for the role he plays as Chair of the Cross-Party Group, and “for the engagement you have with those organisations who have all the evidence, who are working at the front line”.
She added:
“I think it is very useful that you had that discussion, you had the Deputy Director there from Ofgem, and you had experts around the table—those on the front line. So, I will take this back, in terms of the questions and the issues that you raised and you explored with them, in terms of regional variation and regional cost on the network. I'm grateful for that.”