Energy expert reacts to proposed scrapping of the gas standing charge and explains what it could mean for customers

Today (28 October), ahead of the Budget, the Treasury has announced plans to scrap the gas standing charge on energy bills for millions of households across the UK.

A standing charge is the daily fixed cost customers pay to remain connected to the gas network, regardless of how much energy they use. Under the current energy price cap, the average household pays around £108 per year in gas standing charges, regardless of consumption.

While there is currently no confirmed implementation date, the move could be good news for many consumers at a time when global energy prices remain volatile.

Gareth Kloet, energy expert at Go.Compare Energy, explains what the proposal could mean for households and who is likely to benefit most: "The proposed removal of the gas standing charge will be welcomed by millions of households. The Treasury estimates that around 60% of gas customers could benefit, with average savings of around £45 a year for those homes.

"It's important to remember that these costs aren't disappearing altogether. Instead, the fixed costs currently covered by the gas standing charge will be moved into the unit rate. This means households that use less gas are likely to pay less overall, while those with higher gas consumption could end up paying more.

"For many customers, the change could mean having greater control over their energy bills, as more of what they pay would be linked directly to how much gas they use. It also gives households a bigger financial incentive to reduce their consumption where possible.

"The timing of any changes will also be important. If the new system is introduced during winter, when gas use is typically at its highest, some households may not immediately notice the full benefit because their overall usage will be higher.

"The move could also benefit people who own a second home for personal use, as they currently pay standing charges even during periods when very little gas is being used.

"More broadly, the proposal aligns with the Government's longer-term ambition to reduce reliance on gas and encourage greater use of electricity.

"That said, there are still a number of unanswered questions. We don't yet know how long the changes will remain in place, whether they will be temporary or permanent, or what the implications could be for customers on fixed-rate tariffs.”

Gareth adds:

"Ultimately, one of the best things you can do to keep your energy costs down is regularly review your tariff and check whether switching could save you money. Even small differences between deals can add up to meaningful savings over time."

And for more information on how to switch energy providers, Go.Compare has put together a guide which you can find here.  

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