Standing charges removed
The government has announced that household gas standing charges will be removed across approximately 23 million homes. Chancellor John Healey has asked Ofgem to deliver the removal of these fixed daily fees in 2027 or as soon as possible thereafter. The fixed costs will instead be recovered through the unit rate.
Expected savings and impact
HM Treasury calculations indicate that shifting these costs to the unit rate could save 60% of account-holding households an average of £45 off their annual bill. For households that do not see an automatic saving, the change aims to remove the fixed daily cost regardless of usage. The government stated it will set out targeted mitigation for a small number of households in due course.