What is Ofgem’s standing charge cap proposal?

Ofgem has proposed changes that could limit (cap) the daily standing charge you pay on your energy bill. The standing charge is the fixed amount you pay each day to cover things like network costs and metering, regardless of how much energy you use. This page’s calculator helps you estimate how a cap could affect your annual costs.

What is the standing charge and why does it matter?

The standing charge is a fixed daily fee added to your electricity and/or gas bill. It matters because you pay it even if your usage is low (for example, in a small home or during warmer months). A lower standing charge can increase savings for lower-use households, while changes may be balanced by unit rate adjustments depending on the tariff structure.

How does the Ofgem standing charge cap savings calculator work?

The calculator estimates your potential savings by comparing your current standing charge costs against a scenario where the standing charge is capped. Enter the details requested (such as your current standing charge and usage where applicable) to see an indicative annual impact. Results are estimates and are designed to help you understand possible outcomes rather than provide a guaranteed bill total.

Do I need my bill to use the calculator?

Having a recent bill helps because it shows your current standing charge (pence per day) and unit rates. If you don’t have a bill to hand, you can still use the calculator with your best estimate, then rerun it later with accurate figures for a more reliable result.

Could my unit rate go up if the standing charge is capped?

Potentially, yes. In some proposals, reducing the standing charge could be offset by higher unit rates (pence per kWh) to recover costs. That’s why your savings depend on how much energy you use—lower users may benefit more, while higher users might see smaller savings or a different outcome.

Who is most likely to benefit from a standing charge cap?

Households with lower energy usage—such as smaller properties, single-occupancy homes, and some low-income households—often feel the standing charge more sharply because it’s a fixed cost. A cap can reduce the proportion of the bill that is unavoidable, which may improve affordability for low-use customers.

Is the calculator result guaranteed or an official Ofgem quote?

No. The calculator provides an estimate based on the information you enter and the cap scenario being modelled. Your actual bill will depend on your supplier, tariff, regional charges, payment method, and any final regulatory decisions.

What should I do after calculating my potential savings?

Use your results to decide whether it’s worth reviewing your current tariff and comparing alternatives. If you want to take action, you can explore options from energy suppliers and tariffs on Energy Plus to see whether switching could reduce your costs now, regardless of future policy changes.

Does the standing charge cap apply to both gas and electricity?

Standing charges exist for both gas and electricity, but any cap proposal may apply differently depending on the fuel type and the final policy design. If the calculator offers separate inputs for gas and electricity, enter both for a complete picture of your household’s potential impact.

Where can I learn more about suppliers and switching?

You can browse energy supplier information and guidance on switching here: https://www.energyplus.co.uk/Suppliers/.

Ofgem standing charge cap proposal: savings calculator (UK)

Estimate how much you could save if Ofgem’s standing charge cap proposal is introduced—then compare whole-of-market deals that may reduce your costs today.

Quick calculator: enter your current standing charges and usage for an instant estimate
UK-specific guidance: payment method, meter type, region and tariff structure
Clear caveats: this is an estimate and depends on the final rules suppliers apply

Use the savings calculator Get a whole-of-market quote

Estimates use the inputs you provide and assume unit rates stay the same. Ofgem proposals can change and suppliers may reprice tariffs.

Fast answer: what a standing charge cap could mean for your bill

A standing charge is the daily fixed cost you pay for being connected to the gas and/or electricity network—shown on your bill as pence per day. If Ofgem introduces a cap (or a change to how standing charges are set), your costs could shift—especially if you use little energy.

You may benefit most if…

You have low usage (small flat, frequently away, or very efficient home)
You’re all-electric and pay two standing charges (or more) across meters
You’re on a tariff with above-average standing charges for your region

But watch for trade-offs

Suppliers could adjust unit rates if rules change (your per-kWh cost matters)
Prepayment, smart meters and regions can have different charges
Fixed tariffs may have exit fees—switching has to be worth it

Best next step

Use the calculator to estimate a cap’s impact, then compare deals now—because the best value depends on both standing charge and unit rate.

Go to the calculator

Important: Ofgem has consulted on options around standing charges in recent years. Until a final decision and implementation date are confirmed, any savings are estimates. Suppliers can also change pricing structures.

Standing charge cap savings calculator (estimate)

This calculator estimates the bill difference if your standing charges were capped at a lower level. It does not assume unit rates change (we explain why in the methodology).

Tip: You can find your standing charge on your bill (often shown in p/day) or in your online account tariff details.

1) Enter your current charges

How to use your result (and when switching still helps)

Even if a cap is introduced, your total cost depends on both:

Standing charges (daily fixed cost)
Unit rates (p/kWh for electricity and gas)

A simple rule of thumb

Low usage households: Standing charges often make up a larger share of the bill, so a lower standing charge can matter more—if unit rates are competitive.
High usage households: Unit rates usually dominate. A small standing charge change may be outweighed by a higher p/kWh price.

If you’re on a fixed tariff: check your contract end date and any exit fees. Switching early can cost more than you save.

What you’ll need for the most accurate comparison

Your postcode (regional network costs affect standing charges)
Your tariff type (single-rate vs Economy 7, smart/standard)
Payment method (Direct Debit vs prepayment)
Approximate annual usage in kWh (from your bill, if available)

Two realistic examples (with numbers)

These scenarios show standing charge-only changes (unit rates assumed unchanged). They’re illustrative—not a prediction of final policy or supplier pricing.

Scenario A: electricity-only flat (low usage)

Current electricity standing charge: 62p/day
Test cap: 45p/day
Difference: 17p/day

Estimated saving: 0.17 × 365 = £62.05/year

If unit rates rose by even a small amount, the net saving could reduce—especially if your usage is higher than expected.

Scenario B: dual fuel house (typical use)

Current electricity standing charge: 58p/day ? cap 50p/day (save 8p/day)
Current gas standing charge: 33p/day ? cap 25p/day (save 8p/day)
Total standing charge difference: 16p/day

Estimated saving: 0.16 × 365 = £58.40/year

For higher-usage homes, a small unit rate change can be more important than standing charges—compare the full tariff.

Compare impacts: standing charge cap vs switching tariff

A cap (if introduced) would change one part of your cost. Switching tariff can change both standing charge and unit rates. Use this table to decide what to focus on first.

Option	What could change	Who it tends to suit	Main caveats
Standing charge cap (proposal)	Daily standing charges could reduce up to the cap level.	Low usage, electricity-only homes, people paying relatively high standing charges.	Not confirmed; suppliers may adjust unit rates; timings and eligibility can vary by meter/payment type.
Switching tariff	Standing charges and unit rates can both change depending on tariff.	Most households—especially medium/high usage where unit rates dominate.	Exit fees on fixes; credit checks sometimes apply; prepayment and Economy 7 choices are more limited.
Do nothing (stay put)	No change unless your supplier varies prices under your contract terms.	People near the end of a fixed deal who plan to compare soon anyway.	You may miss better value tariffs; standard variable tariffs can change with market conditions.

Decision checklist: likely worth focusing on the cap if…

Your current standing charge looks high for your region/payment type
Your annual kWh usage is low (standing charge is a big share of your bill)
You can’t easily switch yet due to exit fees or a landlord-managed supply

Decision checklist: likely worth comparing tariffs now if…

You’re on a standard variable tariff and want price certainty
Your usage is moderate/high (unit rate differences add up)
You have Economy 7 or a smart meter and can access better-fit tariffs
Your fix is ending soon (you can line up a switch)

Good to know: Standing charges vary by region because they include network costs, policy costs and other components. Two households on the same supplier can see different standing charges if they’re in different parts of Great Britain.

Costs, exclusions and common pitfalls (UK-specific)

Standing charge changes sound simple, but real bills depend on tariff rules and household circumstances. Here are the most common “gotchas” we see.

1) Unit rates can move

If standing charges are constrained, suppliers may rebalance prices (e.g. higher p/kWh). Your net outcome depends on your kWh use.

2) Meter type matters

Economy 7/multi-rate tariffs have day/night unit rates. A standing charge change alone may not reflect your true costs.

3) Payment method differences

Direct Debit, prepayment and pay-on-receipt tariffs can have different charges and availability. Switching options may be narrower on prepayment.

Exit fees and contract terms

Fixed tariffs may charge exit fees if you leave before the end date.
Some fixes waive exit fees in the last 49 days (supplier terms vary).
Always check the tariff information label and your online account.

Tenants and managed supplies

If you pay the supplier directly, you can usually switch.
If energy is included in rent or you’re in a managed building supply, you may not control the tariff.
For heat networks, standing charges work differently (not covered here).

Not included in this estimate: changes to VAT, government support schemes, supplier goodwill credits, debt repayments on prepayment meters, or any future changes to how standing charges are recovered.

FAQs

What is a standing charge in the UK?

It’s a daily fixed charge (p/day) that covers things like keeping your home connected, maintaining the network, and some policy costs. You pay it even if you use no gas/electricity.

If Ofgem caps standing charges, will my bill definitely go down?

Not definitely. A cap could lower standing charges, but suppliers may also change unit rates or introduce different tariff structures. Your net bill depends on your usage and tariff terms.

Does the standing charge differ by region?

Yes. Standing charges vary across Great Britain because distribution network costs and other components differ by region. That’s why your postcode matters when comparing.

Is there a different standing charge for prepayment meters?

Often, yes. Charges can differ by payment method (Direct Debit vs prepayment vs pay-on-receipt). Deal availability can also be more limited on prepayment, so comparing matters.

How do I find my current standing charge?

Check your latest bill, statement, or your supplier’s tariff page in your online account. It’s typically listed near the unit rate and shown as p/day for gas and electricity.

I have Economy 7—does a cap affect me differently?

The standing charge component is still daily, but Economy 7 bills are heavily influenced by how much energy you use at night vs daytime. Compare the full tariff (day rate, night rate, standing charge).

Can I switch energy supplier if I rent?

Usually yes if you’re the bill payer and have your own meter. If energy is included in rent or supplied via a managed building arrangement, you may not have a choice—check your tenancy agreement or landlord/agent.

Will switching affect my credit score?

Most domestic switches don’t involve a hard credit search, but some suppliers may run checks depending on tariff and payment method. If you’re concerned, consider tariffs designed for your payment preferences.

Trust, methodology and sources

Page accountability

Written by: EnergyPlus Editorial Team
Reviewed by: Energy Specialist
Last updated: March 2026

How we assess standing charge cap “savings”

We calculate standing charge change only: (current p/day - cap p/day) × 365 for electricity and gas, where above zero.
We do not assume unit rates change in the calculation because the final policy design and supplier pricing response are uncertain.
We present scenarios to show why unit rates can outweigh standing charge changes for higher-usage households.
Regional and payment differences: we prompt for postcode and payment method because standing charges can vary across Great Britain and by payment type.

Limitations: This page does not provide financial advice. Your bill depends on your supplier, tariff terms, meter configuration (including multi-rate), and any future regulatory decisions. Always check tariff details before switching.

Sources (UK)

Ofgem (UK energy regulator) — price cap, standing charge and consumer information
Citizens Advice: energy — switching, bills and complaints guidance
GOV.UK — consumer rights and support schemes (where applicable)

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Updated on 19 Mar 2026