Andy Burnham plans major change to energy bills to help people save more

Gas standing charges could be scrapped under new proposal

The charges apply regardless of whether a customer uses any gas. For households paying by Direct Debit, the average fee is currently 29.68p a day for gas and 54.83p for electricity.

Over 12 months, that adds up to around £108 for gas and £200 for electricity.

Burnham raised the proposal during Prime Minister’s Questions, telling MPs he had asked the Chancellor, John Healey, and Energy Secretary, Miatta Fahnbulleh, to examine whether gas standing charges could be scrapped.

“I can tell the House today that I have asked the Chancellor (John Healey) 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,” he said.

These daily fees are separate from the cost of the energy used in a home. 

Ofgem says they help cover the cost of maintaining the network that supplies gas and electricity, including the pipes, wires and cables involved, as well as the staff and buildings needed to keep energy companies running.

Millions could see energy bills jump by 16% in January

The debate over standing charges comes as households face further pressure from rising energy prices. 

Ofgem’s price cap increased by 4% on 1 October, bringing the typical annual bill for customers paying by Direct Debit to £1,723, up from £1,663 for the previous period.

Bills could rise again early next year. Cornwall Insight estimates that the annual price cap may reach £1,999 in January, which would add £276 to the typical yearly bill, which is a 16% increase.

Burnham also used the Commons session to defend the Government’s decision to approve the Jackdaw gas field in Scotland. 

Environmental campaigners have criticised the move, but he argued that the project would help keep the UK supplied with energy.

“This decision does strengthen our energy security. It will release gas into British homes and British industries starting in the next few weeks, and it does support us in a difficult time,” he said.