Ofgem standing charge shake-up 2025: find the cheapest tariffs
Compare whole-of-market UK home energy deals and see how the 2025 standing charge changes could affect your bills. Get a personalised list of tariffs in minutes.
- Check tariffs with lower standing charges, lower unit rates, or both
- See fixed vs variable options based on your usage and postcode
- Switch with confidence: clear costs, exit fees and tariff terms
Free comparison for UK households. We’ll show prices and key terms side-by-side. Availability varies by region and meter type.
Compare cheapest UK tariffs after the standing charge shake-up
Ofgem’s standing charge proposals for 2025 have put the spotlight on a simple question: what’s the cheapest tariff for my home when the daily fee changes? The reality is that “cheapest” depends on your usage, meter type, region and whether you prefer a fixed deal or a flexible variable tariff.
EnergyPlus compares whole-of-market home energy tariffs available for your postcode. We’ll show the costs that matter:
- Standing charge (p/day) — what you pay even if you use no energy
- Unit rate (p/kWh) — what you pay for energy you use
- Estimated annual cost — based on your usage and tariff rules
- Key terms — exit fees, fixed end dates, and payment methods
Tip: If you’re a low-usage household (e.g. small flat, single occupancy), changes to standing charges can shift which deal is best. If you’re high-usage, unit rate often matters more than a few pence per day.
Why the 2025 standing charge changes matter when you’re hunting the cheapest tariff
Your bills are two-part
Every tariff combines a daily standing charge and a unit rate. A “cheap” daily fee can be offset by a higher unit rate (and vice versa).
Low users can be hit hardest
If you use less energy, the standing charge makes up a larger share of your annual cost. Any shift in standing charges can change the best deal for small households.
Regional prices vary
Standing charges and unit rates differ across GB regions and networks. The cheapest tariff in one area may not be cheapest in another.
Important: We can’t promise a single “cheapest tariff for everyone”. Instead, we compare deals available at your postcode and rank them using your usage figures, so you can choose on total estimated cost and terms.
What is the Ofgem standing charge “shake-up” in 2025?
Standing charges are the fixed daily fees on energy bills. Ofgem has consulted on reforms to how these charges are set and recovered, with the aim of addressing fairness concerns and how costs are shared between customers. Because decisions and timings can change, the best action is practical: compare current live tariffs and understand how standing charge vs unit rate affects your household.
What could change
- How certain network and policy costs are split between standing charge and unit rate
- Different standing charge levels by payment method and meter type (where applicable)
- Greater visibility and scrutiny of daily charges
What usually doesn’t change
- You still pay a mix of standing charge and unit rate
- Prices still vary by region and supplier
- The cheapest tariff is still personal to your usage
If your priority is saving money, focus on total estimated annual cost and the tariff terms, not just one headline number.
How to find the cheapest tariff when standing charges change
-
Start with your usage
Use your annual kWh from a recent bill. If you’re unsure, use a best estimate and re-check once you see results. -
Compare on total cost (not just the daily fee)
A lower standing charge can look attractive but may come with a higher unit rate that costs more overall. -
Choose fixed vs variable based on your risk preference
Fixed tariffs provide price certainty for a set term. Variable tariffs can track market movements and typically have more flexibility. -
Check tariff terms before you switch
Look for exit fees, end dates, and whether discounts depend on paying by Direct Debit. -
Re-check if you change your heating or lifestyle
Moving to a heat pump, EV charging, or working from home can change your usage enough to make a different tariff cheaper.
Quick check: If you want a fast way to sanity-check a deal, multiply the daily standing charge by 365 and add (unit rate × your annual kWh). This helps you compare like-for-like across tariffs.
Ready to see your options? Use the comparison form to view live tariffs for your postcode.
Standing charge vs unit rate: what actually makes a tariff “cheap”
Below is a simple way to think about costs. Actual prices vary by region, supplier, payment method and meter type, but the trade-off is consistent.
| Household profile | What matters more | What to look for | Common pitfall |
|---|---|---|---|
| Low usage (small flat, out a lot) | Standing charge can dominate | Lower daily fee, but still check unit rate | Chasing lowest unit rate while paying high daily charge |
| Typical usage (most households) | A balance of both | Best total annual cost + fair terms | Comparing tariffs without matching payment method/meter type |
| High usage (large home, electric heating, EV) | Unit rate often dominates | Competitive p/kWh; consider fixed deals if budgeting | Overpaying overall because the “low standing charge” headline hides a high unit rate |
| Prepayment customers | Depends on available tariffs | Compare specifically for PAYG; check for smart PAYG options | Assuming Direct Debit tariffs apply to prepayment meters |
Fixed tariff: when it can be cheapest
Fixed deals can be strong value when suppliers price competitively against expected future movements. They’re also useful if you want stable bills. Always check exit fees and the fixed end date.
Variable tariff: when it can be cheapest
Variable tariffs can be cheapest when market prices fall or when you want flexibility (often no exit fees). Your rates may change, so keep an eye on your comparison results.
Regional considerations: why your postcode affects standing charges
Energy costs in Great Britain can vary by region because electricity distribution network areas differ. That means two homes on the same tariff name can still see different standing charges and unit rates based on location.
Standing charge varies by region
A national headline (e.g. “standing charge reduced”) may not reflect your local price. Always check the actual p/day for your postcode.
Meter type changes what’s available
Single-rate, Economy 7 and smart meters can access different tariffs. Some “cheapest” deals are only available for certain meters.
Payment method impacts pricing
Monthly Direct Debit often unlocks lower pricing, but it’s not universal. Compare using your real payment method for an accurate cheapest list.
Best practice: Enter your postcode and usage, then filter tariffs by fixed/variable and term length. That’s the quickest way to identify the cheapest options that you can actually switch to.
Common mistakes when comparing “low standing charge” tariffs
Comparing electricity-only figures on a dual-fuel home
Your cheapest option could change if you switch gas and electricity together. Compare dual fuel if you have both meters.
Ignoring exit fees and end dates
A cheap fixed tariff may become expensive if you need to leave early. Check fees and whether the tariff auto-rolls to a higher variable rate.
Using the wrong payment method
Direct Debit vs prepayment vs cash/cheque can materially change the prices you’re offered. Always compare like-for-like.
Focusing on one number
The cheapest tariff is the one with the lowest total cost for your expected usage—after standing charge, unit rate and terms are taken into account.
FAQs: Ofgem standing charges and cheapest tariffs
What is a standing charge on my energy bill?
A standing charge is a fixed daily amount (pence per day) you pay to cover costs such as maintaining the energy networks and other fixed costs. You pay it regardless of how much energy you use.
Will a lower standing charge always mean a cheaper tariff?
Not necessarily. Some tariffs lower the standing charge but increase the unit rate. The cheapest tariff for you depends on your annual kWh usage and the tariff’s terms.
How do I find the cheapest tariff for my postcode in 2025?
Use a whole-of-market comparison with your postcode, meter type and payment method, then rank by estimated annual cost using your usage. That’s exactly what the EnergyPlus comparison form is designed for.
Do standing charges differ for prepayment meters?
They can. Prices vary by supplier, region and payment method. Compare using “Prepayment (PAYG)” to see tariffs and pricing that match your setup.
Is it worth fixing my tariff if standing charges are changing?
Fixing can be worthwhile if the total cost is competitive and you want certainty. If you value flexibility or expect prices to fall, a variable tariff may suit you better. Always review exit fees and the fixed term.
What information do I need to compare accurately?
- Postcode
- Whether you have gas, electricity or both
- Payment method (Direct Debit, prepayment, cash/cheque)
- Annual usage (kWh) from your bill or best estimate
What households say about comparing with EnergyPlus
“The results made it obvious that a slightly higher standing charge was still cheaper overall for our usage. Switching was straightforward.”
“I’m on low usage, so the standing charge matters. EnergyPlus helped me find a better deal for my flat without guesswork.”
“Clear breakdown of unit rates, standing charges and exit fees. It saved me time compared with checking each supplier.”
Trust signals: Whole-of-market comparison approach • Clear tariff terms • Postcode-accurate pricing where available • Household-focused (not business energy)
See your cheapest tariffs for 2025 — based on your home
Standing charges are only part of the picture. Compare whole-of-market options using your postcode, payment method and usage to find the deal that’s cheapest for you.
Estimates are indicative and based on your inputs. Tariff availability, standing charges and unit rates vary by region, meter type and supplier.
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