UK Government Asks Ofgem to Remove Gas Standing Charges in Great Britain
- Reports
- 2
- Developments
- 2
- Repetition
- 0%
New informationRepeats or wire copies
What happened
The government has asked Ofgem to remove fixed daily gas charges across Great Britain in 2027 or as soon as possible afterward. These charges, which average £108 a year for a typical household, would shift to the price per unit of gas. The government estimates that around 60% of account-holding households could save an average of £45 a year. Separately, eligible households in England are due £100 energy payments starting in January 2027.
From labourlist.org, econotimes.com
Why it matters
The shift from fixed daily fees to per-unit pricing changes the fundamental billing structure for gas suppliers. This regulatory change is intended to reduce household energy costs for a large segment of consumers. The government's Budget also included other fiscal measures, such as raising the Bank Corporation Tax Surcharge.
From labourlist.org, econotimes.com
Who's involved
- OfgemThe formal regulator responsible for managing energy price caps and asked to remove gas standing charges.
- governmentThe governing system that requested Ofgem implement the gas charge changes and introduced the energy payments.
- Office for Budget ResponsibilityThe advisory body that provides independent fiscal estimates and forecasts regarding the economic situation in England.
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.
- National GasSpeculative
National Gas could see changes in billing structure as costs shift from fixed daily fees to unit prices.
- National Energy System OperatorSpeculative
National Energy System Operator may adjust operational costs as gas pricing models shift.
How it developed
Newest first. Tap a step to see who reported it.Labour government requested Ofgem implement gas charge changes.1 source
Ofgem manages energy price caps and is asked to remove gas standing charges in Great Britain.1 source
Keep exploring
The entities involved
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England
country in north-west Europe, part of the United Kingdom
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Ofgem
United Kingdom government non-ministerial department
Nothing else this week.
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Office for Budget Responsibility
an advisory non-departmental public body
Related events
- Middle East supply disruptions are driving up UK energy costs, prompting Ofgem to note risks regarding National Gas intervention.
- Belgium is providing gas supply to Britain via pipelines, a deal documented by Ofgem.
- John Healey announced a fare cap across England, funded by savings within the Department for Energy Security and Net Zero. Andy Burnham commented on the policy.
- Global supply issues, driven by the Middle East conflict and Hormuz Strait blockade, are pressuring UK energy prices and affecting national inflation warnings.