Ofgem standing charge cap proposal: who would save?
Understand how a proposed cap on standing charges could affect your energy bills, who benefits most, and what you can do now to cut costs with whole-of-market home energy comparisons.
- See who’s likely to save most (low-use homes, single occupants, prepay customers)
- Learn the trade-offs: standing charge down vs unit rates up
- Compare tariffs today and switch if you can save
EnergyPlus.co.uk is a whole-of-market comparison service for UK homes. Switching depends on availability, eligibility and your current tariff terms.
Compare home energy prices while Ofgem’s proposal is debated
A standing charge cap (if introduced) may change how much of your bill is a fixed daily cost vs a usage-based cost. But you don’t need to wait: you can still reduce bills now by comparing tariffs across the market and switching if a better deal is available for your postcode and meter type.
Good to know: A cap on standing charges wouldn’t automatically mean everyone pays less overall. Many proposals reduce the daily standing charge but increase the unit rate (p/kWh) to keep supplier revenue broadly similar.
This comparison form helps you:
- Check electricity and/or gas tariffs for your home, whole-of-market
- See whether a low-standing-charge tariff suits your usage
- Get a clear view of estimated annual costs (not just headline rates)
Get your personalised quote
What is Ofgem’s standing charge cap proposal?
In Great Britain, most domestic electricity and gas tariffs include a standing charge (a fixed daily fee) and a unit rate (what you pay per kWh used). Ofgem has explored options that would cap or reduce standing charges, responding to concerns that high fixed charges can be unfair for households that use less energy or who struggle to keep up with bills.
Any proposal in this area typically aims to change the balance between fixed and variable costs. That means a cap on standing charges is often paired with one or more of the following:
- Higher unit rates to recover costs elsewhere
- Different caps by region (because network costs vary across Great Britain)
- Protections for vulnerable households and payment-method differences (e.g., prepayment)
Important: This page explains how a standing charge cap could affect typical households. It isn’t financial advice, and final outcomes depend on Ofgem decisions, supplier pricing and your exact tariff.
Who would save if standing charges are capped?
In general, a lower standing charge helps lower-usage households the most, because a larger share of their bill is currently fixed. But the real answer depends on whether unit rates rise, and by how much. These are the groups that often stand to gain in a standing-charge-cap scenario.
Low energy users
If you’re in a small flat, out of the house often, or simply use little gas/electricity, the standing charge can represent a big chunk of your costs. Reducing it may cut bills noticeably.
Single occupants
One-person households often have lower consumption than families. If unit rates don’t rise too sharply, a standing charge cap could be more favourable for you.
Prepayment meter customers
Prepay customers have historically faced higher costs. Some policy options aim to reduce fixed charges, which may offer a fairer baseline—though price structures can vary.
Homes with electric heating that manage usage
If you’re careful with electricity use (e.g., storage heaters used well, or smart controls), a lower daily charge can make overall costs easier to manage—depending on unit rates.
Second homes / very low occupancy
Properties used infrequently may benefit from reduced fixed costs. But check tariff terms and whether your supplier offers suitable options for minimal usage.
Customers prioritising bill predictability
Lower standing charges reduce the “bill floor” you pay even when you use little or no energy—useful if you’re budgeting tightly month-to-month.
Likely losers: Higher-usage households may pay more overall if unit rates rise enough to offset the standing charge reduction—especially larger families or homes with high electricity consumption.
The trade-off: lower standing charge vs higher unit rates
Standing charges cover costs that don’t depend on how much energy you use (for example, maintaining networks, metering and certain policy costs). If a cap reduces standing charges, suppliers and the system may recover those costs elsewhere—often by increasing unit rates.
Why it matters when you compare tariffs
When prices move between standing charge and unit rate, the “best” tariff depends more on your usage profile. The right way to compare isn’t looking at one number—it’s looking at estimated annual cost for your home.
Tip: If you don’t know your kWh, you can still compare. Your supplier bills typically show annual usage, and comparison quotes can estimate based on home type. If you submit the form above, we’ll help you find a tariff aligned to your meter and postcode.
What to do now (before any standing charge cap changes)
Policy changes can take time. If you want to reduce bills now, focus on what you can control: your tariff structure, your payment method, and your usage.
- Check your current standing charge and unit rate (electricity and gas are separate). Look at your latest bill or your online account.
- Work out whether you’re low, medium or high usage. If standing charges feel like a large share of your bill, you’re more likely to benefit from lower-standing-charge options.
- Compare whole-of-market tariffs for your postcode. Different suppliers price fixed vs usage differently. Your best option may already be available today.
- Review exit fees and switching windows. Some fixed deals have early termination fees, while others are flexible.
- Reduce kWh where it’s realistic. If future pricing shifts more cost into unit rates, efficiency improvements (draught-proofing, controls, LED lighting) can become even more valuable.
Regional differences: why your postcode matters
Standing charges and unit rates can vary across Great Britain because network and distribution costs aren’t the same everywhere. That means the impact of a standing charge cap (and the best current tariffs) can differ between regions.
What changes by region?
- Electricity distribution and transmission charges
- Local network investment and operating costs
- Supplier pricing approaches in different areas
What stays the same?
- Your usage pattern still drives which tariff structure suits you
- Any cap would still be implemented through regulated rules
- You can compare and switch (subject to tariff terms)
Best next step: Use your postcode in the comparison form so results reflect your region and meter type.
Common mistakes when judging standing charges
Only comparing the standing charge
A cheaper daily charge can be offset by a higher unit rate. Always compare estimated annual cost based on your usage.
Assuming a cap means automatic savings
Policy proposals can redistribute costs. Some households may pay more if unit rates increase significantly.
Not accounting for meter type
Smart meters, Economy 7-style setups, and prepayment options can affect tariff availability and how rates apply.
FAQs: Ofgem standing charge cap and savings
What is a standing charge on my energy bill?
A standing charge is a fixed daily fee you pay for energy supply, regardless of how much you use. It helps cover costs like networks, metering and other system charges.
If standing charges are capped, will my bill definitely go down?
Not necessarily. If the standing charge falls but the unit rate rises, low users may save while higher users may pay more. The net effect depends on your kWh usage and the final pricing structure.
Who benefits most from a standing charge cap?
Typically, households with low energy usage: single occupants, small homes, and properties with minimal consumption. Some proposals may also improve fairness for prepayment customers.
Could higher unit rates penalise electric heating?
It can, depending on how much of the bill shifts into the unit rate. If your home uses a lot of electricity (including electric heating), the unit rate becomes more important—so comparing tariffs and improving efficiency matters.
Is this about domestic energy only?
Yes. This page is focused on UK home energy bills (not business energy).
What’s the quickest way to see if I can save right now?
Run a whole-of-market comparison for your postcode and meter type. Use the form in Compare tariffs to get personalised results.
Why homeowners use EnergyPlus.co.uk
Whole-of-market approach
We focus on outcomes that matter: estimated annual cost based on your details, not just a headline rate.
Postcode-accurate comparisons
Regional pricing differences mean your postcode is essential for accurate results and eligibility.
Clear, UK-focused guidance
We explain how tariff structures work so you can choose what fits your household—especially when policy changes are being discussed.
What customers say
“I didn’t realise the standing charge was such a big part of my bill. The comparison helped me find a tariff that suited my low usage.”
“Quick to submit and the follow-up made it easier to understand my options. I was comparing the wrong numbers before.”
Want to know if you’d save on a lower standing charge?
The best way to find out is to compare tariffs using your postcode and household details. We’ll help you see options that may suit low, medium or high usage—so you can make a confident choice.
- Whole-of-market home energy comparison
- Electricity and gas options in one place
- Clear focus on estimated annual cost
No scripts on this page. Your details are sent securely via the form submission.
Quick checklist
- Have a recent bill nearby (optional)
- Know your postcode
- If you can, note whether you’re credit or prepay
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