UK to abolish gas standing charges affecting 23 million homes
Chancellor John Healey says he will ask the energy regulator to remove fixed daily fees from gas bills by 2027.
At a glance
- Standing charges affect 23 million homes across Great Britain
- Typical household currently pays £108 per year in fixed daily fees
- Average saving estimated at £45 per year for two-thirds of households
- Ofgem will be asked to implement the change by 2027 or sooner
Chancellor John Healey announced plans to abolish standing charges on gas bills for 23 million homes, describing the fixed daily fees as unfair and outdated. He said he would ask Ofgem, Great Britain's energy regulator, to remove the charges by 2027 or as soon as possible after.
The typical household currently pays £108 per year in standing charges. Energy Secretary Miatta Fahnbulleh said the move would save households an average of £45 annually and give families greater control over their energy spending.
Why it matters
Standing charges are a fixed daily cost added to gas bills regardless of consumption, making it difficult for households to control spending and leaving them vulnerable to price shocks.
Original reporting
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