John Healey to end standing charges on gas bills for 23m homes
Source: The Guardian ·
As budget looms, chancellor says he will ask Ofgem to remove ‘unfair and outdated’ fixed daily fee in 2027 or soon afterBusiness live – latest updatesJohn Healey is abolishing standing charges on gas bills for 23m homes to end an “unfair and outdated” practice, saving households an average of £45 a year.Ahead of his first budget statement in the Commons later on Wednesday, the chancellor said he…
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John Healey is abolishing standing charges on gas bills for 23m homes in a move he says will end an “unfair and outdated” practice and save two-thirds of households an average of £45 a year. Ahead of his first budget statement in the Commons later on Wednesday, the chancellor said he would ask Ofgem, the energy regulator for Great Britain, to remove these charges – which are £108 a year for the typical household – next year or as soon as possible after. A standing charge is a fixed daily fee added on top of a household gas bill, regardless of usage. A household could use no gas at all but still must pay the standing charge. The Treasury said the move could save 60% of account-holding households an average of £45 off their annual bill. Andy Burnham said: “Abolishing gas standing charges is about basic fairness and giving people more control over their bills. I am determined to reform our broken energy market, so it better serves the public interest.” The prime minister has talked of…