Healey to ask regulators to scrap fixed gas charge — Cyprus Mail

In the United Kingdom, Finance Minister John Healey said he would ask regulators to scrap the fixed daily charge for connecting homes to the gas supply. The initiative is part of his first budget, the full text of which was due to be published later on Wednesday, Cyprus Mail reports.

How gas bills will change

The fixed charge is collected regardless of whether a household consumes gas. It covers the costs of connecting a home to the gas supply. According to the UK Treasury, for a typical household this charge averages £108 per year.

Healey plans to ask regulators to abolish this payment in 2027 or as soon as possible thereafter. The Treasury said that the costs currently covered by the fixed charge would be moved into the price of gas consumed. According to the department’s estimate, around 60% of households in whose name bills are issued will be able to save an average of £45 per year.

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Energy costs

The minister called fixed gas charges unfair and outdated. According to him, scrapping them should provide millions of households with some relief amid the high cost of living.

Earlier this month, the government reduced value-added tax in electricity bills. The regulated energy price cap for UK households rose by 4% in October, while some forecasts projected an increase of about 20% in January—to more than £2,000 per year for the average bill, which includes electricity. The fixed electricity charge under the current price cap is around £200 per year.