Government to examine scrapping gas bill standing charges

Summarised from 2 outlets · Updated 22 Oct, 08:02 · Archive

The UK Government will examine whether standing charges can be removed from gas bills to help reduce household energy costs. Prime Minister Andy Burnham announced the review during Prime Minister's Questions, asking Chancellor John Healey and Energy Secretary Miatta Fahnbulleh to investigate the proposal and report back to MPs as soon as possible.

The announcement comes as households face the prospect of increased energy bills from January, following a four per cent rise in Ofgem's price cap at the beginning of October. Burnham said the move would allow the Government to do more to help people with bills.

Standing charges are fixed daily fees added to gas bills regardless of how much energy a household uses. The charges cover costs associated with supplying energy to homes, including maintaining networks and infrastructure upgrades. Customers typically pay separate standing charges for gas and electricity, with amounts varying depending on supplier, tariff, payment method and location.

How it is being reported

• Gas standing charges could be scrapped under new plans to cut energy billsThe Prime Minister has ordered a review of the fixed daily charges as households face another potential rise in energy costs this winter.Daily Record · 22 Oct, 07:47
• UK Government to 'look at' removing standing charges on gas billsTHE UK Government will look at scrapping standing charges on energy bills, it has emergedThe National · 21 Oct, 12:09

In this story: UK Government · Andy Burnham · John Healey · Miatta Fahnbulleh · Kemi Badenoch · Ofgem

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