Politics · United Kingdom · 2 hrs ago

UK ministers to examine removing standing charges from gas bills

UK ministers to examine removing standing charges from gas bills

Prime Minister Andy Burnham asked ministers to examine removing gas standing charges from household bills in the UK.

He asked Chancellor John Healey and Energy Secretary Miatta Fahnbulleh to report back to MPs as soon as possible.

Standing charges are fixed daily fees, paid regardless of how much gas a household uses.

They cover the cost of delivering energy and maintaining the network, rather than the gas itself.

The proposal comes as households face pressure from rising energy bills: the price cap rose 4% on October 1, and a forecast predicts a further rise in January.

Removing the charges could ease some household costs, but the ministers have been asked to assess whether it is possible; no decision to scrap them has been announced.

Burnham also said the government’s approval of the Jackdaw gas field would help fund renewable energy and efforts to reduce the link between gas and electricity prices.

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What people are saying

Andy BurnhamPrime Minister
I have asked the Chancellor and the Energy Secretary (Miatta Fahnbulleh) to look at whether we can remove standing charges from gas bills and to report back to this House at the earliest opportunity.
via Evening Standard
Kemi BadenochConservative leader
What we have lost is the confidence to make tough decisions
via Evening Standard
Tim JarvisOfgem chief executive
It’s going to be a difficult winter.
via Evening Standard