Andy Burnham wants to cut your energy bills. The Greater Manchester mayor’s three-point plan, regional pricing, heat network reform, and public ownership of distribution, landed this week with a promise to shave hundreds off household costs. For the 18 million English households outside London and the South East, the first point alone matters: regional standing charges currently cost northern homes up to £120 more per year than those in the capital, according to Ofgem data cited by the mayor’s office.
As reported by The i Paper, Burnham’s proposals are not yet government policy, but they tap a growing frustration among homeowners who see their bills rising while network profits climb. Ofgem reported distribution network operators made £3.1bn in profit in 2023, much of it from fixed charges households cannot avoid.
Who qualifies, and who doesn’t
The regional pricing proposal targets standing charges, the fixed daily fee covering network maintenance, metering, and social programmes. A typical 3-bed semi in Manchester currently pays about 55p per day in standing charges for electricity, versus 42p in London. Burnham wants to equalise these costs across England, which would save northern households roughly £47 a year on electricity alone, plus similar reductions on gas standing charges.
But the catch is that standing charges also fund the Warm Home Discount and renewable subsidies. If those costs are redistributed, southern households would see their standing charges rise, potentially by £30–£40 a year. Burnham’s team argues this is fairer given higher average incomes in the South East, but the Treasury has not commented.
What it costs a typical 3-bed semi
For a homeowner in Bolton or Bradford, the combined effect of all three proposals could reduce annual energy bills by £150–£200, Burnham’s office estimates. That figure assumes regional pricing saves £100, heat network regulation cuts communal heating bills by 15% (worth about £50 for the 500,000 UK households on district heating), and public ownership of distribution trims network charges by 5% over five years.
Energy Saving Trust modelling suggests heat network regulation alone could save a typical flat-dweller £80–£120 a year, as many existing networks charge rates above the price cap. The government’s Heat Networks Market Framework, due in 2025, would enforce price transparency and require operators to meet efficiency standards, but Burnham wants it faster and stronger.
What this misses, and what you can do now
The proposals do not address the biggest household cost: wholesale energy prices, which make up 45% of a typical bill. Nor do they touch insulation or heat pump grants, which the Energy Security Secretary confirmed last month will run until 2028 under the Boiler Upgrade Scheme. A homeowner who switches to a heat pump today can get £7,500 off installation, cutting annual heating costs by £200–£400 compared to a gas boiler.
Burnham’s plan is a political intervention, not a policy programme. But it signals a shift in the conversation: regional inequality in energy costs is no longer a niche grievance. For homeowners, the immediate action remains the same, check your EPC, apply for available grants, and fix your tariff before October’s price cap rise. The mayor’s ideas may take years to land. Your boiler upgrade can happen this autumn.
Frequently Asked Questions
Not directly, the regional pricing proposal would likely increase standing charges in London and the South East to equalise costs nationally. However, heat network regulation and public ownership changes could benefit all households by reducing network profits and improving efficiency.
None are government policy yet. Regional pricing would require Ofgem rule changes and likely a new Energy Act, which could take 2–4 years. Heat network regulation is already in parliamentary process, with new rules expected in 2025. Public ownership of distribution would need primary legislation and is not currently on the government's agenda.
