Ahead of the budget, the UK chancellor announced removal of the standing charge
on millions of gas households. Analyst Faisal Islam said the plan scraps the
fixed element that currently averages £108/yr on annual bills; energy firms say
the standing charge is the most-complained-about feature and its removal should
strengthen energy-efficiency incentives and support a shift to electrification.
The Treasury estimates 60% of households will save about £45/yr on average, with
low-usage households benefiting most and high-usage households (eg, larger
homes) facing higher bills because the recovered cost will be added to the
per-unit gas price.
