Burnham proposes scrapping gas standing charges
Households could potentially stop paying gas charges that accrue even when the heating is off, Andy Burnham has revealed, reports BritPanorama.
The Prime Minister announced to MPs that he is seeking to eliminate gas standing charges, which are daily fees customers incur in addition to actual gas consumption.
Burnham has directed the Chancellor and the Energy Secretary to explore the feasibility of removing this charge. However, he has not provided a timeline for when any changes might be implemented.
This development coincided with a heated exchange during Prime Minister’s Questions with Tory leader Kemi Badenoch regarding Labour’s endorsement of the Jackdaw gas field. Badenoch expressed support for the move but criticized Labour’s appointment of a former activist as Energy Secretary, implying that the party has contradicted its own stance.
“So many jobs lost. So much time and money wasted,” Badenoch remarked. “Britain cannot be a serious player on the world stage if the government dithers for two and a half years over approving a single license.”
In response, Burnham attributed the delay to the previous Conservative government’s mishandling of the approval process. He stated, “The resources that come in now from this decision will allow us to invest in renewables, bring forward clean energy, and in this Parliament, substantially de-link gas and electricity prices, so that we can bring bills down.”
He emphasized that the revenue generated would also facilitate additional support for households facing rising costs. “I can tell the House today that I have asked the Chancellor and the Energy Secretary 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.
Currently, gas bills include a charge for the amount of gas used and a daily standing charge, which remains in effect even if no gas is consumed, helping to cover fixed supply costs. The Government anticipates that the Jackdaw gas field, recently approved, could begin supplying gas to UK homes and businesses by the end of the month.
Furthermore, the Chancellor has announced the establishment of an energy wealth fund, aimed at investing North Sea oil and gas tax revenues into renewable and low-carbon energy initiatives.
Standing charges, which are applied to both gas and electricity bills, are fixed daily fees that customers must pay regardless of energy usage, contributing to infrastructure and network maintenance costs.
As the government navigates these energy policy changes, the implications for consumers and the broader energy market remain to be seen, highlighting both immediate concerns and future strategic planning.
Burnham’s proposal prioritises consumer relief while simultaneously framing a vision for future sustainability, a balancing act that will inevitably attract scrutiny from various stakeholders.
