Standing charge cap proposal: what it could mean for UK energy bills
Learn how a proposed cap on electricity and gas standing charges could affect your total bill, who may benefit most, and the practical steps you can take today to reduce costs by comparing whole-of-market tariffs with EnergyPlus.
- Understand standing charges vs unit rates (and why both matter)
- See where savings may come from under a cap proposal
- Compare UK home energy deals in minutes (whole-of-market)
- Get personalised options based on your postcode and usage
EnergyPlus is a whole-of-market comparison service for UK homes. We’ll show available options and help you choose—no obligation to switch.
Check your savings with a whole-of-market comparison
A standing charge cap is only a proposal—and even if implemented, your overall bill will still depend on the unit rate you pay for each kWh of gas and electricity, plus your standing charge. The most reliable way to reduce costs is to compare your options and choose a tariff that fits your home’s usage.
Use the form to get tailored results. We’ll use your postcode to show available home energy tariffs and highlight where you may save—especially if you’re on a standard variable tariff or your fixed deal has ended.
Tip: If you don’t have your exact kWh usage, you can still start with postcode details and refine later using your latest bill or smart meter data.
What you’ll see in your results
- Tariffs available at your address (subject to eligibility and supplier availability)
- Estimated monthly and annual costs based on the details you provide
- Clear comparison of standing charge and unit rates
- Options to fix your price (where available) or remain flexible
Prefer to understand the proposal first? Jump to what a standing charge cap could change.
Note: Energy prices and tariff availability can change. Standing charge levels and unit rates vary by region and meter type, and may be different for prepayment meters. Always check the full tariff information before switching.
What is a standing charge on your energy bill?
A standing charge is a daily fixed amount you pay to your energy supplier for being connected to the gas and/or electricity network. You pay it regardless of how much energy you use (even if your usage is zero), and it’s usually shown on bills in pence per day (p/day).
Standing charge (fixed)
Covers things like metering, billing, and network costs. Charged per day, per fuel.
Unit rate (usage)
The price per kWh you use. This is where higher usage can quickly increase your bill.
Your total bill
Usually: (unit rate × kWh used) + (standing charge × days) + VAT.
If your home uses relatively little energy (for example, a small flat or someone who’s away often), the standing charge can form a bigger share of your total costs—so changes to standing charges may matter more.
Standing charge cap proposal in the UK: what it could change
A standing charge cap proposal is the idea of putting a limit on how high the daily fixed charge can be for households. The aim is typically to improve fairness, particularly for people who use less energy or who feel their bills are “high before they’ve even turned anything on”.
However, there’s an important trade-off: if suppliers and networks recover less through standing charges, the cost may be recovered elsewhere (for example, via unit rates). That means a cap could help some homes more than others depending on usage.
Key points to know before planning savings
- Nothing changes your bill until policy changes are implemented. Your best savings usually come from the tariff you choose today.
- Standing charges are regional and can differ by meter type (including prepayment), so “average” figures may not match your bill.
- A lower standing charge doesn’t automatically mean a cheaper deal—a higher unit rate can outweigh it.
- Whole-of-market comparison helps you see both standing charge and unit rate together, based on your usage.
If a cap lowers standing charges
Low-usage households could see more noticeable reductions in the fixed portion of their bills—especially in regions with higher standing charges.
If costs shift into unit rates
Higher-usage households may see less benefit overall if unit rates rise, because kWh costs scale with usage.
For personalised savings, compare based on your actual (or estimated) usage. Use the form to see tariffs available at your postcode.
Who could save most from a standing charge cap?
If standing charges were reduced through a cap, savings are likely to be largest for households where the fixed daily charge is a bigger share of the total bill. These groups often include:
Low energy users
Smaller homes, single occupants, and people away from home often see a higher proportion of their bill coming from standing charges.
Electricity-only homes
If you don’t have gas, the electricity standing charge may feel more significant—especially if your electric usage is modest.
Homes in higher-standing-charge regions
Standing charges can vary by region. A cap could narrow differences, depending on how it’s designed.
Important: Even if standing charges fall, it’s possible unit rates rise to compensate. Always judge value on your estimated annual cost, not a single line item.
Standing charge cap savings: worked examples (illustrative)
The examples below show how a reduction in standing charges could affect annual costs. They are illustrative only (not quotes) because real standing charges and unit rates vary by region, meter type and tariff.
| Household type | Fuel | Standing charge (before) | Standing charge (after) | Illustrative annual saving | What to watch |
|---|---|---|---|---|---|
| Low-usage flat | Electricity | 60p/day | 40p/day | ~£73/year | If unit rates rise, savings may reduce. |
| Average dual fuel home | Gas + Electricity | (50p + 60p)/day | (40p + 50p)/day | ~£73/year | Check annual cost across both fuels. |
| High-usage family home | Gas + Electricity | (50p + 60p)/day | (40p + 50p)/day | ~£73/year | Higher usage means unit rate changes matter more. |
Quick takeaway: A 20p/day reduction is around £73 per fuel per year (20p × 365). If both gas and electricity standing charges fell by 20p/day, that’s roughly £146/year—before any changes to unit rates.
Want a more accurate view? Compare using your postcode and household details to see the estimated annual cost of each tariff in your area.
How to reduce energy bills now (regardless of a cap)
Policy changes can take time. If your goal is to cut costs this month and over the next year, focus on what you can control: your tariff, your meter set-up, and how your home uses energy.
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Compare your tariff based on annual cost
Look at both the standing charge and the unit rate. A tariff with a low standing charge can still be expensive if the unit rate is higher. -
Check if you’re out of contract
Many households drift onto a standard variable tariff after a fixed deal ends. Comparing options can highlight better-value tariffs. -
Confirm your payment method and meter type
In some cases, changing how you pay (or addressing a meter issue) can affect the tariffs available. -
Reduce avoidable usage without sacrificing comfort
Simple wins: draught-proofing, lowering flow temperature (where suitable), using thermostatic radiator valves, and running appliances efficiently. -
Re-check your options when prices change
Energy markets move. If new fixed deals appear, a fresh comparison may reveal savings.
Common mistake: focusing on standing charge only
If you use a lot of energy (larger homes, electric heating, home working), the unit rate often drives most of your annual cost.
Better approach: compare total annual cost
A whole-of-market comparison helps you judge value across both standing charge and unit rate, based on your usage and region.
FAQs: standing charge cap proposal and savings
Would a standing charge cap reduce my bill automatically?
Only if and when implemented, and depending on how the cap is designed. Even then, suppliers may adjust unit rates. Your total cost is what matters.
Can suppliers increase unit rates if standing charges are capped?
Potentially, yes. If less is recovered through standing charges, some costs may move into unit rates. That’s why comparing estimated annual cost is key.
Do standing charges differ by where I live?
Yes. Standing charges vary across Great Britain by region and can also vary by meter type. Entering your postcode helps ensure comparisons are relevant.
Is it worth switching if I’m worried about standing charges?
Often, yes—especially if you’re out of contract. Switching is typically about lowering the total annual cost, not just the standing charge line item.
Does this apply to business energy?
This page is focused on home energy only. If you’re looking for business energy, pricing structures can differ.
What do I need to compare accurately?
A postcode is the best start. For greater accuracy, use your annual kWh usage from a recent bill (or your smart meter/app). If you don’t have it, you can still compare and refine later.
If you’re ready to see options available in your area, go to Compare & save.
Why households use EnergyPlus
When energy pricing is changing—and headlines focus on standing charges—it helps to compare with clarity. EnergyPlus focuses on the numbers that actually drive your bill.
Whole-of-market view
Compare a broad range of home tariffs, so you can judge value beyond a single supplier.
Standing charge + unit rate shown clearly
We highlight the components that matter, so you can avoid deals that look cheap but cost more overall.
Practical guidance
Understand the trade-offs and choose a tariff that suits your household’s usage patterns.
What people say
Social proof helps you feel confident when taking the next step. Here are examples of feedback themes customers commonly report when comparing home energy tariffs.
“Clear comparison of standing charge and unit rates—helped me understand what I’d actually pay over the year.”
“Easy to start with just my postcode, then refine once I found my kWh usage.”
“Helpful guidance—no pressure. I felt confident choosing the tariff that matched our usage.”
Testimonials shown are representative statements for on-page trust-building and may not reflect every customer experience.
Don’t wait for policy changes to start saving
A standing charge cap may or may not reduce your bill in the future. Comparing tariffs based on your postcode and usage can reveal savings you can act on now.
- Whole-of-market comparison for UK homes
- See standing charge and unit rate side-by-side
- Personalised estimates based on your details
It takes a few minutes to get started. You’re in control—switch only if you find a tariff you’re happy with.
Ready when you are
Jump back to the form to check tariffs for your postcode and see estimated annual costs.
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