Government Considers Scrapping Gas Bill Standing Charges
Prime Minister pushes for immediate relief while defending Jackdaw gas field approval amid renewable energy investment plans.
Carla Rooney
Prime Minister Andy Burnham has asked for an examination into removing standing charges from gas bills.
Households currently pay an average gas standing charge of 29.68p per day. This totals approximately £108 annually for those on Direct Debit, Ofgem reports. Ministers will now consider removing these charges.
The proposed changes offer relief for households grappling with energy costs. Exact savings depend on how suppliers adjust pricing structures.
Separately, the government’s strategy includes the recent approval of the Jackdaw gas field. This decision intends to invest in renewables, accelerate clean energy initiatives, and de-link gas and electricity prices.
Andy Burnham stated the previous Tory government "messed up" the approval process for Jackdaw, causing delays. Burnham claims resources from the Jackdaw decision will allow investment in renewables and bring forward clean energy.
He further claims this will substantially de-link gas and electricity prices within this Parliament. This will ultimately bring bills down. "That’s why there was the delay, because they didn’t do the process properly," Burnham said. "And we’ve made a pragmatic decision, Mr Speaker, that will allow us to do two things. Firstly, build a bridge to a renewable future because 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."
The Prime Minister also linked the Jackdaw decision to broader relief efforts. "It will also allow us, Mr Speaker, to do more to help people with bills. I can tell the House today that I have asked the Chancellor 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."
However, Kemi Badenoch claims Labour has been dithering for two-and-a-half years on the Jackdaw approval. Badenoch also claims Labour should repeal its ban on all new oil and gas licenses.
We have the resources, the expertise and the people. What we have lost is the confidence to make tough decisions.
She asserts the UK possesses the necessary resources, expertise, and people for oil and gas. "We have the resources, the expertise and the people. What we have lost is the confidence to make tough decisions," Badenoch stated.
The government also announced a new £2 billion energy wealth fund. This fund will support renewable and low-carbon energy projects.