Prime Minister Andy Burnham has instructed ministers to devise a plan to eliminate standing charges from gas bills, which are fixed daily fees covering connection and infrastructure costs. The proposal aims to reduce bills for low-income households, with research from Nesta suggesting it could cut around £27 annually for a typical customer. However, industry body Energy UK noted that the impact on bills depends on how these charges are redistributed, potentially increasing costs for heavy gas users.
Burnham linked the plan to broader energy policy, stating that approving the Jackdaw gas field would enable greater investment in renewables, helping to lower household energy costs by decoupling electricity prices from gas prices. While Ofgem has been consulting on standing charges and running pilot schemes, no definitive approach has been established. Concerns remain about protecting vulnerable customers, as Citizens Advice warned that changes could penalise those with high energy use but low incomes.
Read the full story: BBC UK News.
Source: BBC UK News. Aggregated summary, not independent reporting.