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Burnham Orders Review of Gas Standing Charges

By Drooid · Oct 21, 2026, 10:09 PM UTC · How we work

Summary

Burnham Calls Review

Prime Minister Andy Burnham asked Chancellor John Healey and Secretary Miatta Fahnbulleh to review removing gas standing charges.
Standing charges currently cost households about £108 (£140) per year.
Nesta estimated that removing the charge could lower a typical bill by £27 annually.
Energy UK warned that reallocating the £2.4 billion charge could change overall bills.
Energy Security Minister Michael Shanks said the gas network must remain fairly funded despite charge changes.

Summary

Badenoch Demands Licence Repeal

Conservative leader Kemi Badenoch accused Labour of dithering for two-and-a-half years over the Jackdaw gas field approval.
Prime Minister Andy Burnham argued the Jackdaw decision will generate resources to invest in energy projects.
Burnham said the plan will help delink gas and electricity prices, supporting a renewable future.
Badenoch urged Labour to repeal its ban on issuing new oil and gas licences.

History

Historical Context

The 1986 Gas Act, a key Thatcher privatization, turned the state-run British Gas Corporation into British Gas plc (valued at £9 billion) and created the independent regulator OFGAS. In 1990 the new market added a household standing charge, later shown to generate £1.5 billion a year – about 30 % of gas revenue – and it underpinned the early-1990s “Dash for Gas” shift to North Sea gas.

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Burnham Calls Review

Prime Minister Andy Burnham asked Chancellor John Healey and Secretary Miatta Fahnbulleh to review removing gas standing charges.
Standing charges currently cost households about £108 (£140) per year.
Nesta estimated that removing the charge could lower a typical bill by £27 annually.
Energy UK warned that reallocating the £2.4 billion charge could change overall bills.
Energy Security Minister Michael Shanks said the gas network must remain fairly funded despite charge changes.

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