Ofgem Urged to Crack Down on Small Firms’ Skyrocketing Standing Fees

Small Businesses Are Feeling the Heat—And the Standing Charge Surge

Imagine running a shop or a craft studio and every day you see a daily fee climbing faster than your quarterly profits. That’s the reality many small firms are facing with the standing charges imposed by Ofgem.

Why Is This a Big Deal?

The cost per day has jumped from under 71p in July 2021 to nearly 970p in September 2023—over 13 times higher.
Rural businesses are hit hardest, widening the gap between countryside and city.
They’re paying more for the same network they know can’t be shared with their larger counterparts.
And they’re missing the protection safeguard that households enjoy.

What Small Businesses Actually Pay For

These charges are meant to cover:

Network upkeep
Operating costs
Social initiatives like the Warm Home Discount

But for most small firms, the math is the same as: “I’ve got a bill, I don’t know what it’s for, and it hurts.”

Why the Owners Are Outraged

They feel like they’re caught between two stools: business‑size corporate power and consumer‑level protection. The structure leaves them vulnerable to a “soft‑target” for price hikes.

FSB’s Letter: A Call for Fairness

The Federation of Small Businesses (FSB) wrote to Ofgem’s chief executive, Jonathan Brearley, demanding a review:

“We need a thorough verdict on these charges—clarity, fairness, and a real understanding of who’s receiving what.”

FSB’s Policy Chair Tina McKenzie stresses the need for transparency.
Highlights that many firms haven’t seen a drop in bills—just a shift to higher tariffs.
Emphasizes that the “standing charge must be paid day in, day out,” meaning even if energy use drops, the costs stay.

What Has Been Done So Far?

Ofgem opened a Call for Input on standing charges.
FSB has replied, voicing concerns and urging that the regulator act.
Energy Ministers Claire Coutinho and Amanda Solloway echoed the call with a letter stressing fairness for all consumers.

The Bottom Line

Small businesses fought the energy crisis, many fell apart, and now they’re stuck with unmanageable tariffs. The standing charge is a daily reminder that they’re not getting a fair slice of the pie. FSB is pressing Ofgem to:

Review and clarify the purpose behind standing charges.
Ensure that small firms are not being “fleeced.”
Provide the same consumer-level protection to business customers.

It’s a battle for fairness, transparency, and a chance for small businesses to breathe again—with a dash of humor we hope keeps the conversation light and keeps the issue alive.