Burnham asks ministers to review gas standing charges

Prime Minister Andy Burnham has asked Chancellor John Healey and Energy Secretary Miatta Fahnbulleh to examine whether gas standing charges can be removed, a proposal that could alter how households are billed but has not yet been adopted as policy. Burnham said in Parliament that the ministers should consider the change and report back at the earliest opportunity. No timetable was given for their findings, and the government has not announced a decision to abolish the charges. Standing charges are fixed daily fees on gas bills, paid regardless of how much gas a customer uses. Ofgem figures cited in the reports put the average charge for customers paying by direct debit at 29.68 pence a day, or about £108 a year. Rates vary by region and payment method, including for prepayment customers and people who pay when billed. That average is not a guaranteed saving. Standing charges help cover network maintenance and other costs, and removing them would not eliminate those expenses. Suppliers could seek to recover some costs through higher unit rates, so the effect on a household’s total bill would depend on how any replacement system is designed and how suppliers adjust prices. The...