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<p>The standing charge includes some electricity distribution costs, which vary regionally to reflect the different costs of maintaining and upgrading the distribution network in different regions. Ofgem, as the independent energy regulator overseeing network charges, has previously reviewed regional differences in network charges. Its report found that there are advantages in charges that broadly reflect the costs that different users place on the system. In particular, this cost-reflective approach to network charging supports an efficient system where overall network costs are minimised for consumers across Great Britain.</p> |