Prime Minister proposes removing gas standing charges

Prime Minister Andy Burnham asked ministers to develop a plan to remove standing charges from gas bills. He said the decision to approve the Jackdaw gas field would allow more investment in renewables and help people with bills.

Standing charges are fixed daily fees that cover connection costs. The average gas standing charge is 29.7p per day. Energy UK said the effect would depend on how the charges are reallocated. Nesta suggested moving the costs to the unit rate could benefit low‑usage customers but may increase costs for heavy users.

The Guardian column said Jackdaw approval is a step toward a mature North Sea policy. It is seen as a response to questions about where gas comes from. The field is 150 miles east of Aberdeen and will produce in time for winter. The column noted that more North Sea gas would not lower consumer prices significantly.

Burnham also said investing in renewables would break the link between gas and electricity prices. Electricity prices are largely set by gas prices. The government aims to increase investment in renewables to help people with bills. The approval of Jackdaw is part of that strategy.