- Cost of living crisis and energy policy under Andy Burnham
- The Green Party and Ellie Chowns urged Andy Burnham to cut energy bills following the Ofgem price cap increase.
Andy Burnham asks ministers to review gas standing charges
What happened
Andy Burnham has asked Chancellor John Healey and Energy Secretary Miatta Fahnbulleh to develop a plan to remove standing charges from gas bills. Standing charges are fixed daily fees that households must pay regardless of whether energy is being used. The suggestion was made as regulator Ofgem continues its consultations on these charges. Research firm Nesta proposed moving these charges to the unit rate, meaning customers would pay only for gas they consume.
From bbc.co.uk
Why it matters
The proposal addresses household support issues amid pressure on the Prime Minister regarding energy costs. While Energy UK noted that the impact depends on how the charges are reallocated, the move could benefit low-income customers and those who use little gas. However, heavy users might end up paying more under a unit rate structure.
The Green Party and Ellie Chowns previously urged Andy Burnham to cut energy bills following the Ofgem price cap increase.
From bbc.co.uk
Who's involved
- Andy BurnhamBritish politician who asked ministers to review gas charges
- John HealeyChancellor of the Exchequer asked to review gas charge reform
- OfgemRegulator currently running consultations on standing charges
- Miatta FahnbullehEnergy Secretary asked to look at gas charge reform
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- EnglandSpeculative
Consumers might see changes in their energy costs depending on how standing charges are reallocated.
- Octopus EnergySpeculative
Energy companies could see changes in their revenue models if the billing structure is altered.
- uSwitchSpeculative
Price comparison services could see shifts in how they present energy costs to customers.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- How could the proposed shift away from standing charges affect uSwitch?Price comparison services may need to adapt to new energy cost structurePossible
- New gas billing rules may change Shell's operational costsShell's operational costs may be affected by changes to gas billing rulesPossible
- Octopus Energy may face changes to revenue models from standing charge reformOctopus Energy may face changes to revenue models from standing charge reform.Possible
Keep exploring
The entities involved
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Andy Burnham
British politician (born 1970)
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John Healey
British politician (born 1960)
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Ofgem
United Kingdom government non-ministerial department