Burnham proposes plan to cut standing charges from gas bills
The prime minister provided little detail, and there are questions over shifting the fees onto unit costs.
Burnham suggests plan to remove standing charges from gas bills
Prime Minister Andy Burnham has asked ministers to draw up a plan to abolish standing charges on gas bills.
These are fixed daily fees that pay for the cost of being connected to a supply. They differ by region, and households have to pay them even when they are not using energy.
Industry group Energy UK said any impact on bills from the proposed changes would depend on how, and where, the charges were shifted on the bill.
However, an influential research foundation said it would be a progressive step that would assist low-income households and reduce a typical annual bill by £27.
At Prime Minister's Questions, Burnham said the "pragmatic decision" to approve the Jackdaw gas field in the North Sea would let the government boost investment in renewables and "do more to help people with bills".
He said he had asked the Chancellor John Healey and Energy Secretary Miatta Fahnbulleh "to look at whether we can remove standing charges from gas bills and to report back to this house at the earliest opportunity".
No explanation has been provided for how removing standing charges would work in practice.
It would likely help customers who use little gas, while heavier users could end up paying more.
For almost two years, regulator Ofgem has held a series of consultations on standing charges, drawing a huge public response that included strong opposition from low-energy users who cannot do anything to reduce standing charges.
Ofgem is running a pilot scheme on low standing charge tariffs, but has not yet reached any firm conclusions, indicating there are no simple answers.
Average standing charges are 54.8p a day for electricity and 29.7p a day for gas.
When asked why electricity standing charges would not also be scrapped, the PM's official spokesman said VAT had already been cut on electricity bills.
Standing charges pay for costs such as moving energy to homes through pipes and wires, as well as maintaining that infrastructure.
They also help fund schemes that support low-income households.
People who are vulnerable, do not have a high income, but use a lot of energy, could be disadvantaged.
But Madeleine Gabriel, director of sustainable future at Nesta, said: "Abolishing the gas standing charge and moving those costs onto the unit rate would help those worst hit by rising energy prices."
Pressure is still on the chancellor to provide more fundamental, targeted energy support this winter in his Budget next week, with energy prices expected to rise by 16% to a four-year high in January.
Alongside standing charges, Burnham said investment in renewables would also bring household bills down "substantially" by breaking the link between gas and electricity prices "in this parliament".
UK electricity prices are mainly determined by gas prices, and this is often given as a reason why electricity prices in the UK are higher than in many other countries.