Ofgem standing charge cap proposal 2026 calculator (UK)
Estimate how a potential 2026 cap on standing charges could affect your household bills, then compare whole-of-market tariffs with EnergyPlus to find a better deal for your home.
- Quick estimate: your current standing charges vs a capped scenario
- See the impact for electric, gas, or both (dual fuel)
- Compare tariffs and switch online in minutes (home energy only)
Estimates only. Ofgem proposals can change and are not a confirmed price cap. We’ll show the maths and help you compare whole-of-market home energy tariffs.
Standing charge cap proposal 2026: estimate your household impact
Ofgem has previously consulted on ways to reform standing charges (the daily fixed amount on your bill). If a cap is introduced in 2026, your costs could shift between the daily standing charge and the unit rate (pence per kWh). This page helps you estimate what a standing charge cap could mean for your home and then compare whole-of-market tariffs.
What you’ll need (optional):
- Your current electricity and/or gas standing charge (p/day) and unit rate (p/kWh) from a recent bill or app
- Rough annual usage (kWh) if you know it (or we can still compare tariffs without it)
- Your postcode to see available home energy tariffs
If you don’t have your rates handy, you can still use the form to compare. We’ll help you find tariffs that fit your household.
A simple calculator (manual estimate)
Use the formula below with your own numbers. This gives a quick scenario showing how much your annual standing charge component might change if a cap were introduced.
Annual standing charge today
Standing charge (p/day) × 365 ÷ 100 = £/year
Example: 60p/day ? 60 × 365 ÷ 100 = £219.00/year
Annual standing charge with cap
Capped standing charge (p/day) × 365 ÷ 100 = £/year
Difference (saving/cost) = Today - Capped scenario
Important: if standing charges are capped, suppliers may adjust unit rates to recover costs. So the real-world bill impact depends on your usage. In How the estimate works we show how to think about this properly for low, medium and high users.
Compare whole-of-market home energy tariffs
Fill in your details and we’ll show available tariffs for your postcode. This is the fastest way to see potential savings whether or not a standing charge cap happens.
Prefer to gather your numbers first?
Look for these items on your bill or online account:
- Electricity standing charge (p/day) and unit rate (p/kWh)
- Gas standing charge (p/day) and unit rate (p/kWh)
- Your tariff name (fixed/variable) and end date (if fixed)
Why compare energy tariffs if standing charges might change in 2026?
Even with a potential Ofgem standing charge cap proposal in 2026, your household bill is still driven by the tariff you’re on today: unit rates, standing charges, discounts, and how long your prices are fixed for. Comparing now can help you avoid overpaying while policy consultations continue.
See tariffs that fit your usage
If standing charges fall but unit rates rise, low users may benefit while higher users may not. Comparing tariffs helps you choose pricing that matches how your home uses energy.
Lock in certainty (if suitable)
If you value predictable bills, a fixed tariff may suit you. If flexibility matters, variable options can still be compared clearly—so you can decide with confidence.
Whole-of-market comparison
EnergyPlus searches across the market where available, so you can weigh up tariffs on standing charge, unit rate, term length and exit fees—not just headline claims.
How the 2026 standing charge cap estimate works
A standing charge is charged per day, regardless of how much energy your household uses. If a cap were introduced, suppliers may need to recover costs elsewhere—often by increasing the unit rate. That means the impact can differ for low-use and high-use households.
Step-by-step: a practical way to model the change
- Write down your current rates: standing charge (p/day) and unit rate (p/kWh) for electric, gas or both.
- Pick a cap scenario: use a hypothetical capped standing charge (p/day) for each fuel.
- Estimate the standing charge difference: (Current - Capped) × 365 ÷ 100 = £/year.
- Stress-test unit rate changes: try a few “what if” unit rate increases (e.g. +1p, +2p, +5p per kWh) to see how usage affects the outcome.
- Compare tariffs now: use the form above to see whether switching today offers a clearer saving than waiting for policy changes.
Usage sensitivity: why unit rate matters
If a cap reduces standing charges by £X per year but unit rates rise by Y p/kWh, the annual impact of that unit rate change is:
Extra cost from unit rate increase = Annual usage (kWh) × (Y p/kWh) ÷ 100
Example: 3,100 kWh electricity, +2p/kWh ? 3,100 × 2 ÷ 100 = £62/year
Illustrative scenarios table (not a forecast)
| Household type | Standing charge change | Unit rate change test | Likely effect |
|---|---|---|---|
| Low usage (e.g. small flat) | Down noticeably | Small increase may be outweighed | Could benefit if unit rates don’t rise much |
| Medium usage (typical household) | Down somewhat | Moderate increase can cancel savings | Mixed—depends on tariff and region |
| High usage (larger home / electric heating) | Down | Unit rate rise is magnified | May pay more unless unit rates stay competitive |
Use these concepts to sanity-check headlines. The best next step is still to compare available tariffs for your postcode and look at the full cost structure.
What is a standing charge in the UK?
Your standing charge is a fixed daily cost (electric and gas are charged separately) that helps cover things like maintaining the energy network, metering, and supplier operating costs. You pay it even if you use no energy on a given day.
Standing charge vs unit rate
Standing charge: pence per day (fixed).
Unit rate: pence per kWh (changes with usage).
Your total bill = standing charges + (usage × unit rate), plus VAT and any discounts/adjustments.
Why a cap is being discussed
- Standing charges are noticeable for low-use homes
- They can feel unfair if you’re carefully reducing usage
- Policy options may aim to rebalance fixed vs variable costs
If you’re mainly concerned about standing charges, it’s still worth comparing tariffs because different suppliers can have meaningfully different combinations of standing charge and unit rate—especially by region.
Regional considerations: why your postcode matters
Energy standing charges and unit rates can vary across Great Britain because network costs differ by region. That’s why any modelling of a standing charge cap—and any tariff comparison—should start with your postcode.
What can vary by region?
Network cost component
Part of the standing charge relates to your local distribution network.
Supplier tariff design
Some tariffs offset lower standing charges with higher unit rates (or vice versa).
Payment method impacts
Direct debit, prepayment and other arrangements can affect pricing structures.
To see what’s available where you live, use the comparison form. We’ll tailor results to your area.
Common mistakes when estimating a standing charge cap
Looking only at the standing charge
A cap might reduce fixed costs, but unit rates could rise. Always test the impact against your annual kWh usage.
Mixing up electricity and gas rates
Electricity and gas have separate standing charges and unit rates. Model them separately, then combine for a household view.
Using monthly payment as a proxy
Your direct debit can include credit/debit balance changes. Use the tariff rates and kWh where possible.
Forgetting contract terms
If you’re on a fixed tariff, check exit fees and end date. A switch may still be worthwhile, but compare carefully.
FAQs: Ofgem standing charge cap proposal 2026
Is there definitely a standing charge cap in 2026?
Not necessarily. Proposals and consultations can change. This page is a calculator-style guide to help you estimate outcomes and make decisions based on today’s tariffs.
Would a cap automatically lower my bill?
Not always. Lower standing charges could be offset by higher unit rates. The effect depends on how much electricity and gas your home uses.
Do standing charges differ by supplier?
Yes. While Ofgem sets rules and the wider price cap framework, suppliers can offer tariffs with different standing charges and unit rates—often varying by region and payment method.
Is this calculator suitable for prepayment meters?
It’s a general guide. Prices and structures can differ for prepayment. The most accurate approach is to compare tariffs available for your meter type and postcode.
What if I only use electricity (no gas)?
That’s fine—model and compare electricity only. If you have electric heating or hot water, pay extra attention to unit rates, as usage tends to be higher.
Will switching affect my supply?
Switching supplier shouldn’t interrupt your energy supply. The same pipes and wires are used. You’ll just move to a new tariff and billing provider.
Still unsure? Use the comparison form and we’ll help you review options for your home.
Trust & social proof
EnergyPlus is built for UK households who want clarity. We focus on the numbers that matter—standing charges, unit rates and term details—so you can make a decision without guesswork.
“Clear comparison and no jargon.”
Homeowner, West Midlands
“Helped me spot a tariff with a lower standing charge.”
Tenant, Greater London
“Quick to use and results were easy to compare.”
Homeowner, Yorkshire
What you’ll see in your results
- Tariff term length and whether it’s fixed or variable
- Standing charge and unit rate breakdown (electric, gas or both)
- Key conditions such as exit fees (where applicable)
Ready to see what you could pay?
Use our Ofgem standing charge cap proposal 2026 calculator approach as a guide—then compare whole-of-market tariffs for your postcode and switch to a tariff that suits your home.
Home energy comparison only. You’ll keep the same supply—only your tariff and supplier billing changes.
Tip: check your latest bill
If you can, note your standing charge (p/day) and unit rate (p/kWh). It makes it easier to compare like-for-like and understand any policy-driven changes.
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