What is a standing charge and why do I pay it?

A standing charge is a fixed daily amount that covers the ongoing costs of supplying energy, such as maintaining the network, metering, billing and customer service. You pay it even if you use no energy that day.

When could the standing charge cap changes take effect?

Ofgem's proposal is aimed at 2026. Timelines can change depending on consultation outcomes and regulatory decisions, so the exact start date (and final rules) will be confirmed by Ofgem after the consultation and implementation planning.

Would a cap mean standing charges will definitely go down?

Not necessarily. A cap sets a maximum level rather than guaranteeing a reduction for every customer. Outcomes depend on where your current standing charge sits versus any new cap, your region, meter type and your tariff. In some cases, costs could shift between the standing charge and the unit rate.

Could my unit rates rise if standing charges are capped?

They could. If suppliers recover less through standing charges, some costs may move into unit rates. Whether that happens (and by how much) depends on Ofgem's final approach and how suppliers price tariffs under the rules.

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

Customers with low energy consumption (for example, small households or people who are out of the home often) may benefit more if standing charges reduce, because a higher proportion of their bill is fixed. Higher-usage households may see less benefit if costs are rebalanced into unit rates.

How would a standing charge cap affect prepayment meter customers?

It depends on Ofgem's final design and whether protections are applied consistently across payment methods. Prepayment customers often have different price cap levels, so the impact could vary. Always check how any new tariff prices are structured before switching.

Will there be different caps in different regions?

Standing charges already vary by region because distribution network costs differ. Ofgem could retain regional differences, introduce a uniform cap, or apply another method. The final decision will be confirmed in Ofgem's published outcome.

How can I reduce the impact of standing charges on my bill right now?

Compare tariffs and focus on the total annual cost (standing charge plus unit rates) based on your usage. Consider fixing if a competitive fixed tariff is available, submit regular meter readings (or use a smart meter where suitable), and check if you're on the best payment method for your circumstances.

How do I find the best electricity and gas tariff for my home?

Start by estimating your annual usage and compare deals using both standing charge and unit rates. If you want help choosing, speak to Energy Plus for guidance and options: https://www.energyplus.co.uk/

Can Energy Plus help me switch or review my current tariff?

Yes. You can review your options and get help understanding prices and features (including standing charges and unit rates) by visiting https://www.energyplus.co.uk/ and exploring the latest guidance and support.

Ofgem standing charge cap proposal 2026 explained

Q: What is Ofgem's standing charge cap proposal for 2026?

Ofgem is consulting on changes that could limit (cap) how much energy suppliers can charge customers as a standing charge from 2026. Standing charges are the fixed daily costs shown on your bill, separate from the unit rate you pay for each kWh of gas or electricity. Any change would depend on the final decision and how it's implemented across regions and tariffs.

Understand what a standing charge cap could mean for your household energy bills in 2026, what’s confirmed vs proposed, and how to compare whole-of-market tariffs to cut costs now.

Clear explanation of standing charges, unit rates and bill impact
What Ofgem is considering for 2026 and why it matters
Practical next steps to compare deals and switch with confidence

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What is Ofgem’s standing charge cap proposal for 2026?

Standing charges are the daily fixed amounts you pay for gas and electricity, regardless of how much energy you use. A standing charge cap would limit how high suppliers can set those fixed daily charges. For many UK households, standing charges have become a bigger share of the bill—especially for low users, single-occupancy homes, and people who’ve tried to reduce consumption.

In plain English, Ofgem’s idea (as discussed publicly in recent years) is to rebalance how bills are split: less paid as a fixed daily fee, and more (or differently) paid through unit rates (pence per kWh) or alternative approaches. The policy aim is usually framed around fairness, transparency, and affordability.

Important: The exact design, start date, and level of any 2026 standing charge cap may be subject to consultation and regulatory decisions. This guide explains the concept, the likely impacts, and what to do now to protect your household budget.

Why is Ofgem considering changes?

Rising fixed costs in bills (networks, metering, policy costs) have increased standing charges in recent years.
Low usage households can feel penalised when the fixed part of the bill is high.
Debt and arrears concerns: fixed charges accrue even if you use very little.
Public trust: customers often find standing charges confusing and hard to compare.

Compare whole-of-market home energy deals

If standing charges change in 2026, suppliers may adjust unit rates and product structures. Comparing tariffs now helps you find a deal that suits your usage—whether you’re a low, medium or high user.

Tip: If you’re a low user (e.g., small flat, out at work most days), standing charges can matter more. If you’re a high user, the unit rate often matters more. We’ll help you compare both.

Standing charges vs unit rates: the simplest explanation

Standing charge (p/day)

A fixed daily fee for having a supply. It helps cover costs such as maintaining energy networks, meter readings/operations, and some policy costs.

You pay it even if you use no energy that day
It can differ by region and payment method
It impacts low-consumption homes most

Unit rate (p/kWh)

The price you pay for each unit of energy you use. This is where most of your bill sits if you have higher usage.

Directly linked to usage
Varies by tariff (fixed vs variable) and region
Often the key lever for high-consumption homes

A cap on standing charges could mean the fixed daily fee reduces. But the overall cost to run the system doesn’t vanish—so suppliers and the price cap model may rebalance the difference elsewhere. That’s why comparing the full tariff (standing charge + unit rate + any additional terms) is essential.

Why this matters to households: likely benefits and trade-offs

Lower fixed costs for low users

If a cap reduces daily standing charges, households using little energy could see a more noticeable improvement in bill fairness—particularly small flats and single occupants.

Potential shifts in unit rates

To recover allowed costs, unit rates could rise (or be structured differently). High-usage households may need to focus more on p/kWh savings.

More emphasis on comparing properly

A standing charge cap may create new tariff designs. Comparing whole-of-market helps you spot the best match for your household’s usage pattern.

Good to know: Standing charges already vary by region due to distribution network areas. Any cap or reform could still interact with regional pricing and supplier-specific tariff structures.

How a standing charge cap could affect your bill (examples)

Because the proposal is about the structure of charges, the impact depends on how much energy you use. Below are simple illustrative examples to show how shifting costs between standing charge and unit rate can change outcomes. These are not quotes.

Illustrative impact of rebalancing charges
Household type	If standing charge falls	If unit rate rises	Likely net effect
Low user (small flat, away often)	You save on fixed daily fees	Increase may be modest due to low kWh	Often positive, depending on tariff
Medium user (typical household)	Some saving on standing charge	Some increase on usage costs	Could be neutral; comparison is key
High user (large home, electric heating)	Smaller proportion of total bill saved	Higher kWh makes rises more impactful	Could be negative unless unit rates stay competitive

So should you wait until 2026?

For most households, waiting rarely helps. The best approach is to compare the market based on today’s prices and choose a tariff that suits your usage and risk preference (fixed vs variable). If reforms arrive later, you can review again—especially if your tariff is coming to an end.

What you can do now (practical steps)

Check your current tariff details — find your standing charge (p/day), unit rate (p/kWh), and any exit fees if you’re on a fixed tariff.
Estimate your annual usage — use your latest bill or smart meter app. Your kWh usage determines whether standing charge or unit rate matters more.
Compare whole-of-market options — look at the total cost for your usage, not just headline rates.
Choose a tariff that fits your risk — fixed tariffs can offer price certainty; variable tariffs can move with the market/price cap.
Set a reminder to review — especially if you’re nearing the end of a fix or if Ofgem confirms a change that could affect your bill structure.

Common mistake to avoid

Comparing tariffs by standing charge alone. A lower standing charge can be offset by a higher unit rate—so always compare the estimated annual cost for your household usage.

If you’re on a prepayment meter

Tariffs and eligibility can differ. If you’re able to switch payment method or meter type, it can open up more options—subject to supplier checks and your circumstances.

If you want help comparing quickly, head back to the comparison form and we’ll help you review suitable home energy deals.

Regional and household factors that can change the outcome

Where you live

Standing charges and unit rates can vary across Great Britain due to different distribution network areas. Comparing with your postcode is the quickest way to see accurate pricing.

How you heat your home

Homes with electric heating, heat pumps, or high electricity demand are more sensitive to changes in the unit rate. Gas-heated homes may feel changes differently across fuels.

Tariff type and meter

Fixed, variable, time-of-use and smart tariffs price energy in different ways. A standing charge cap could shift which products are best for your usage pattern.

FAQs: Ofgem standing charge cap proposal (2026)

Is the standing charge cap definitely happening in 2026?

Not necessarily. “Proposal” usually means Ofgem is considering options, often through consultation. Final timelines and the exact rules depend on regulatory decisions. Regardless, comparing tariffs based on your usage is still the most reliable way to reduce costs today.

If standing charges are capped, will my total bill go down?

It depends on your consumption. If fixed charges reduce but unit rates rise, low users may benefit more while high users may see less benefit (or pay more). The net effect comes down to your annual kWh and your tariff.

Could suppliers increase unit rates to make up the difference?

They could, depending on how the cap is designed and how allowed costs are recovered within Ofgem’s wider price cap framework. That’s why it’s important to compare the full tariff (standing charge plus unit rate), not just one component.

Will this apply to both gas and electricity?

Any reform may apply differently across fuels, and the level of standing charge can vary between gas and electricity. If you have a dual fuel account, it’s worth comparing combined costs and checking each fuel’s rates separately.

How do I find my current standing charge?

It’s shown on your energy bill, usually near your unit rate. It will be listed in pence per day (p/day). If you have online billing, check the tariff information section.

Is switching safe if rules might change in 2026?

For most households, yes—so long as you check whether your current tariff has exit fees and choose the right term length. Many people choose a fixed tariff for certainty, then review later if the market changes.

Does EnergyPlus compare the whole market?

EnergyPlus is a comparison service designed to help you review a wide range of home energy tariffs. Availability can depend on your region, meter type and supplier participation. Using your postcode gives the most accurate view.

Trusted comparison, designed for UK households

Whole-of-market mindset

We focus on helping you compare tariffs using the numbers that actually matter: standing charges, unit rates and estimated annual cost for your usage.

Clear guidance, not hype

We explain what changes could mean in practice, so you can make a decision that fits your household—especially if pricing structures evolve.

Support when you need it

If you’re unsure about your meter type, tariff end date, or what to compare, we’ll help you work out the next best step.

“I didn’t realise how much the standing charge was affecting my bill. Comparing the total cost by usage made it much clearer.”

— EnergyPlus customer, Great Britain

“Switching was straightforward. I wanted a tariff that balanced unit rate and standing charge for a small household.”

— EnergyPlus customer, Great Britain

Testimonials are representative experiences and may not reflect every customer journey. Savings vary by region, usage, tariff and market conditions.

Want to protect your bill before 2026 changes land?

Compare home energy tariffs using your postcode. We’ll help you review options across the market, focusing on the full cost—not just the standing charge.

Compare now See the steps first

Home energy comparisons only. Terms, availability and prices depend on your location, meter type and supplier criteria.

Quick checklist before you compare

Have your postcode and latest bill to hand
Know if you’re fixed or variable (and any exit fees)
Estimate annual kWh if possible (gas and electricity)

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Updated on 14 Feb 2026