The average UK household paid £1,738 for electricity and gas in 2024, that’s £145 a month, or roughly 6% of median disposable income. For a 3-bed semi in Manchester, the figure is closer to £1,800. Andy Burnham, the Mayor of Greater Manchester, wants to change that.
As The Independent reports, Burnham is pushing for a regional energy company that would bypass the big suppliers and offer lower rates. His argument: northern households pay more for energy than those in London, yet earn less. The gap is real, Ofgem data shows northern regions pay about £80 more a year in standing charges alone.
What Burnham is proposing, and why it matters for your bill
Burnham’s model is a publicly owned regional energy supplier, similar to the London Energy Company but with a twist: it would buy wholesale power directly and sell it at cost, cutting out the big six’s margins. The plan also includes a local heat network and support for solar on social housing. For a typical household, the saving could be £120–£150 a year on standing charges, the fixed daily fee that funds network upkeep. But the catch is scale. A regional supplier in Greater Manchester would need about 500,000 customers to be viable, according to industry estimates. That’s ambitious for a city region with 2.8 million people, many already locked into fixed tariffs.
What it costs a typical 3-bed semi, and the EPC angle
Let’s be concrete. A 3-bed semi in Oldham using 12,000 kWh of gas and 3,000 kWh of electricity pays about £1,750 a year on a standard variable tariff. Burnham’s plan could shave off roughly £130, not life-changing, but meaningful. Yet the bigger issue is the EPC rating. Most homes in the north-west are EPC D or below. Lower bills don’t fix draughts, single glazing, or a 25-year-old boiler. The Energy Saving Trust estimates that insulating a loft and cavity walls saves £300 a year combined. That dwarfs any supplier saving. So while Burnham’s plan tackles the symptom (high bills), it doesn’t cure the cause (leaky homes). Homeowners should treat any bill cut as a bonus, not a strategy.
Who qualifies, and who doesn’t
Burnham’s proposal is for Greater Manchester residents only, at least initially. If it works, other metro mayors might copy it, but that’s years away. For now, the plan excludes rural homeowners, those in the south-east, and anyone outside a combined authority area. The bigger question is funding. Burnham hasn’t said how the public-owned supplier would be capitalised. If it’s via council tax or central government grants, every household pays, even those who don’t benefit. Ofgem’s current price cap already includes a £28 annual levy for social programmes. A regional supplier could add another layer.
What to do now, before any plan arrives
Until Burnham’s supplier goes live, likely 2026 at the earliest, the best move is the same as always. Check your EPC rating on gov.uk. If it’s D or below, apply for the Great British Insulation Scheme, which covers loft and cavity wall work at no cost for eligible households. For heat pumps, the Boiler Upgrade Scheme offers £7,500 off installation. The bill cut from a regional supplier is a future hope. The insulation saving is real today. Apply before the schemes close in March 2026.
Frequently Asked Questions
Not directly. The proposal is for Greater Manchester only. Other metro mayors may adopt similar models, but there’s no timeline. For now, homeowners elsewhere should focus on insulation and heat pump grants to cut bills.
It doesn’t. Lower bills from a cheaper supplier won’t improve your home’s energy efficiency. An EPC upgrade requires physical measures, insulation, glazing, heating system. Treat any bill saving as extra cash to fund those improvements.
