Burnham proposes plan to cut standing charges from gas bills

Source: BBC ·

Burnham proposes plan to cut standing charges from gas bills

The prime minister provided little detail, and there are questions over shifting the fees onto unit costs.

From the source

Prime Minister Andy Burnham has asked ministers to develop a plan to remove standing charges from gas bills. These are fixed daily fees that cover the costs of connecting to a supply. They vary by region and households must still pay them even when energy is not being used. Industry body Energy UK said whether the proposed changes would make a difference to bills would depend on how or where the charges were reallocated on the bill. But an influential research foundation argued it would be a progressive move that would help those on low-incomes and knock £27 off a typical annual bill. During Prime Minister's Questions, Burnham said the "pragmatic decision" on giving the green light to the Jackdaw gas field in the North Sea would allow the government to increase investment in renewables and "do more to help people with bills". He said he had asked the Chancellor John Healey and Energy Secretary Miatta Fahnbulleh "to look at whether we can remove standing charges from gas bills and to…

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