Gas Standing Charge
In short
Chancellor John Healey has announced that gas standing charges will be scrapped for approximately 23 million homes, with the change expected to take effect in 2027.
In plain words
A standing charge is a fixed daily fee you pay to your energy supplier regardless of how much gas you use. The government is removing this fee to lower energy costs for households.
A simple example
If you pay 50p every day just to be connected to the gas network, you will no longer have to pay that amount once the new rules start.
Why it matters
This move aims to reform the energy market and reduce bills, with some experts predicting annual savings of around £108 for certain households.
Easy to mix up
Do not confuse this with the unit rate, which is the price you pay for the actual amount of gas you consume.