What is the Ofgem standing charge cap proposal?

Ofgem has consulted on a proposal to cap (limit) energy standing charges. Standing charges are the fixed daily costs you pay for gas and/or electricity, regardless of how much energy you use. A cap would set a maximum standing charge level for certain tariffs, which could change how much households pay each year.

What is a standing charge and why does it matter?

A standing charge is a daily fixed fee on your energy bill that covers things like network costs, metering and other fixed costs. It matters because you pay it even if you use very little energy, so it can have a bigger impact on low-usage households and people who are trying to reduce consumption.

How does the savings calculator work?

The calculator estimates how a capped standing charge could affect your annual bill by comparing your current standing charge costs with a capped standing charge scenario. It uses the information you enter (such as your current standing charges and your fuel type) to provide an estimated yearly saving or cost difference.

Who could save the most if standing charges are capped?

Households with lower energy usage often feel standing charges more strongly because the fixed daily cost makes up a larger share of the bill. If a cap reduces standing charges, low-usage households (including smaller homes and people who are out during the day) may see the biggest relative benefit.

Will a standing charge cap always reduce my total bill?

Not necessarily. If standing charges are reduced, suppliers or the price cap structure could potentially rebalance costs into unit rates (the price per kWh). Your overall bill depends on both your standing charge and how much energy you use, so results can vary by household.

What information do I need to use the calculator accurately?

For the best estimate, use the standing charge values shown on your latest bill (or in your online account) for electricity and/or gas. Make sure you choose the right region and fuel type if the calculator asks, as standing charges can vary across Great Britain.

Can I switch energy supplier to reduce my standing charge now?

You may be able to reduce your costs by comparing tariffs, but standing charges and unit rates vary by supplier, tariff and region. Use the calculator for an estimated impact of a cap, and consider reviewing your current tariff details before switching.

How can Energy Plus help me reduce my energy costs?

Energy Plus provides practical cost-saving advice and tools to help you understand your bill and potential changes like the Ofgem standing charge cap proposal. You can also explore more guidance here: https://www.energyplus.co.uk/CostSavingAdvice

Ofgem Standing Charge Cap Proposal Savings Calculator

Estimate what the Ofgem standing charge cap proposal could mean for your home energy bills, then compare whole-of-market tariffs to see if you can save now.

Fast, UK-focused calculator: standing charge + unit rate impact
Whole-of-market comparison (not tied to a single supplier)
See estimated annual savings and switch-ready options

Use the savings calculator Compare tariffs & get quotes

Estimates are illustrative and based on the information you provide. Any cap is subject to Ofgem consultation and implementation details.

Estimate your potential standing charge cap savings

Ofgem has discussed options that could reduce standing charges (the daily fixed cost) and rebalance where suppliers recover network and policy costs. If standing charges fall, some costs could move into unit rates (the price per kWh). That means the impact on your household depends on how much energy you use.

Use the form to request a personalised estimate and whole-of-market quotes. We’ll use your postcode and a few details to model typical standing charge changes and show what you could pay on available tariffs.

Tip: Have your latest bill or smart meter app handy. If you know your annual kWh (electricity and/or gas), we can produce a tighter estimate.

What you’ll get after submitting

An estimate of how a standing charge cap could affect your annual costs (illustrative scenarios)
Whole-of-market tariff options available for your postcode
Clear next steps to switch (if it looks worthwhile)

Looking for the quickest route? Jump to compare tariffs and we’ll focus on what you can save today, regardless of any future cap.

Get your estimate & home energy quotes

Complete the form and we’ll send tailored results. This is for UK homes (not business energy).

Important: The “standing charge cap” is a proposal and may change. This page helps you understand potential impacts and compare current deals.

Why use a whole-of-market comparison for standing charges?

Standing charges vary by region, meter type and tariff structure. If the market shifts (or if regulation changes), the cheapest option can change quickly. EnergyPlus helps you compare across a broad range of suppliers and tariff types so you can make a confident decision.

See the full bill impact

We focus on annual cost (standing charge + unit rate), not just the headline kWh price.

Account for regional differences

Standing charges differ by distribution region. Postcode-based comparisons are essential for accuracy.

Make “now vs later” decisions

If a cap arrives later, you still need a good tariff today. We help you avoid waiting unnecessarily.

How Ofgem’s standing charge cap proposal could affect your bill

In the UK, your energy costs are usually made up of: (1) a standing charge (pence per day) and (2) a unit rate (pence per kWh). When people talk about “capping standing charges”, the key detail is where the remaining costs go. A lower standing charge could mean higher unit rates, or it could be funded differently depending on final policy decisions.

A simple way to think about it

Standing charge changes by a set amount (down to a cap, if applied).
Unit rate may change to recover costs elsewhere (depending on the model).
Your usage determines the outcome: low users often benefit more from lower fixed costs; high users may see less benefit if kWh prices rise.
Region matters: distribution charges differ across Great Britain, affecting typical standing charges.

What our calculator estimate aims to show

Scenario-based impact of a lower standing charge on annual cost
Sensitivity to usage (if you provide kWh figures)
Today’s switching opportunity using whole-of-market tariffs available in your area

We do not claim to predict Ofgem’s final decision. Instead, we help you understand how changes to standing charges could flow through to what you pay.

Standing charge vs unit rate: what changes your annual cost?

Bill component	How it’s charged	Who feels it most?	Why it matters for the proposal
Standing charge	Pence per day (fixed)	Low usage households, single occupants, some prepayment users	A cap could reduce fixed costs, but only if costs are not fully moved elsewhere.
Unit rate	Pence per kWh (variable)	High usage households, larger homes, electric heating	If unit rates rise to offset lower standing charges, savings may shrink for higher users.
Tariff structure	Single rate, multi-rate, time-of-use	Smart meter users and those who shift usage	The “best” tariff can depend on your pattern of usage, not just totals.

If you want a tailored view, go back to the calculator & quotes form and include your annual kWh.

Worked examples: who might save from a lower standing charge?

These examples are simplified to show the direction of travel. Real outcomes vary by region, tariff, payment method, and Ofgem’s final approach. The key message: it’s not only about the standing charge cap itself—it’s about your usage and the unit rate you can access.

Example A: lower usage household

Uses relatively few kWh (e.g., flat, single occupant)
Standing charges make up a larger share of the bill
If standing charges fall and unit rates rise slightly, total cost may still reduce

Best next step: compare tariffs with lower standing charges and competitive unit rates for your postcode.

Example B: higher usage household

Uses more kWh (e.g., larger home, more occupants)
Unit rates drive most of the annual cost
If unit rates increase to offset lower standing charges, savings may be limited

Best next step: prioritise the lowest annual cost (unit rate + standing charge), not just the cap headline.

Practical takeaway: If you only compare unit rates, you can miss a tariff with a slightly higher kWh price but meaningfully lower standing charges (or vice versa). Always compare the annual estimate.

Common mistakes when checking standing charges (and how to avoid them)

Comparing only p/day

A lower standing charge can be offset by a higher unit rate. Compare the annual cost based on your usage.

Forgetting regional pricing

Standing charges and unit rates vary by distribution region. Postcode-based results are more reliable than national averages.

Ignoring tariff structure

If you have a smart meter, time-of-use tariffs may work—only if your usage pattern matches the cheaper periods.

FAQs: Ofgem standing charge cap proposal

What is a standing charge?

It’s a daily fixed amount you pay to stay connected to the energy network and cover certain fixed costs. You pay it regardless of how much energy you use.

Does a standing charge cap guarantee savings?

Not necessarily. If costs are moved into unit rates, the net effect depends on your kWh usage. That’s why comparing total annual cost is essential.

Will my region affect my standing charge?

Yes. Standing charges vary by distribution network area. Your postcode helps us estimate with the right regional context.

Should I wait for the cap before switching?

Often, no. If you can lower your annual cost today, waiting can mean overpaying. Use this page to see your “now” options and understand possible future impacts.

Is this for prepayment meters too?

We can provide estimates and comparisons for different payment types, but availability varies by supplier and meter setup. Submit your postcode and we’ll tailor results.

What details help improve accuracy?

Your annual kWh for electricity and gas, your meter type (smart/prepay), and whether you’re single-fuel or dual-fuel. If you don’t have them, we can still provide banded estimates.

Why households use EnergyPlus

We’re built for clarity: comparisons that reflect how bills are actually charged (standing charge + unit rate), with postcode-relevant context.

Transparent estimates

We focus on annualised cost so you can compare like-for-like across tariffs.

Whole-of-market options

Broader choice makes it easier to find a tariff that suits your home and usage pattern.

Human support

If the numbers are close, we help you understand the trade-offs—standing charge, unit rate, and tariff terms.

Customer comments

“The comparison actually explained the standing charge difference by region. It made the quote feel much more realistic.”
— Homeowner, England

“I stopped fixating on unit rates and looked at annual cost. Turned out a different tariff was better for our usage.”
— Household customer, Scotland

Ready to see your potential savings?

Get an estimate for the Ofgem standing charge cap proposal scenarios and compare whole-of-market home energy tariffs available in your area.

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Estimates are not financial advice and do not guarantee future prices. Any regulatory changes depend on Ofgem decisions and supplier implementation.

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Updated on 14 Feb 2026