Ofgem standing charge cap proposal (2026): what you could save
If Ofgem introduces a standing charge cap in 2026, how much could typical UK households save — and what can you do now to cut bills? Compare whole-of-market deals with EnergyPlus and see what’s available for your home.
- See how standing charges work and why a cap could reduce fixed costs
- Estimate potential savings for low, medium, and high usage households
- Compare tariffs in minutes — fixed, variable and tracker options (subject to availability)
- Switch with confidence: regulated suppliers, clear pricing, and UK support
EnergyPlus is a whole-of-market comparison service for UK homes. Estimates on this page are illustrative and depend on Ofgem’s final decision and your usage.
Estimate your potential standing charge savings and compare tariffs
Ofgem has discussed options to reduce or cap standing charges (the daily fixed fee on your electricity and gas bill). If a cap is introduced in 2026, the biggest impact is usually for households that use less energy (because a higher share of their bill is fixed).
Use the form to get a whole-of-market comparison. You’ll see tariffs that may help you lower your total bill — whether the standing charge changes or not — including fixes and other options where available. If you already know your usage and current tariff, have it to hand for a tighter estimate.
Tip: Standing charges can vary by region (distribution area) and by payment method. A 2026 cap, if introduced, may still leave some regional variation depending on Ofgem’s final rules.
What you’ll get after submitting
- A tailored comparison based on your postcode and contact details
- Clear pricing views, including standing charge and unit rates where available
- Support switching to a suitable home tariff (subject to supplier checks)
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Complete the form and we’ll match you with available whole-of-market options.
About this guide: This page explains the standing charge cap proposal and typical 2026 savings scenarios. It is not financial advice. For the latest policy updates, always check Ofgem communications and your supplier’s tariff information.
Who could benefit most from a 2026 standing charge cap?
A standing charge cap aims to reduce the fixed daily cost of having electricity and/or gas connected. The outcome depends on Ofgem’s final design. In many policy designs, reducing standing charges is balanced by changes elsewhere (often unit rates), so the impact varies by usage.
Low energy users
Often see the biggest percentage impact, because the standing charge is a larger portion of total costs. Examples include small flats, single-occupant homes, and households away frequently.
Prepayment and vulnerable customers
Policy discussions often focus on fairness and affordability. A cap could reduce fixed charges that apply even when you’re using very little energy (subject to the final approach and eligibility rules).
Homes with electric-only heating
Your results may be mixed. If standing charges fall but unit rates rise, higher-usage homes may see smaller overall savings. Comparing tariffs remains essential.
Key point: A standing charge cap is about the daily fixed fee — not the overall price cap. Your total bill still depends on unit rates, your kWh usage, and the tariff you’re on.
What is the Ofgem standing charge — and why does it matter?
A standing charge is a daily fee you pay to have your home connected to the energy network. You pay it regardless of how much electricity or gas you use. Your total bill usually consists of:
- Standing charge (pence per day) — fixed cost
- Unit rate (pence per kWh) — variable cost based on how much you use
What the standing charge typically covers
- Maintaining national and local energy networks
- Metering and billing costs
- Policy and system costs set through regulation
- Supplier operational costs (depending on tariff)
Why Ofgem has discussed a cap
Standing charges rose for many households in recent years. Ofgem has considered reforms to improve fairness, help customers who use less energy, and make bills easier to understand. A cap is one potential approach (not a guarantee).
Practical takeaway: Even if a cap arrives in 2026, your best route to savings is often a combination of (1) the right tariff and (2) reducing avoidable usage — especially at peak times, if you have a smart meter and time-of-use options are available.
Ofgem standing charge cap proposal: 2026 savings examples
Below are illustrative examples to help you understand the scale of savings if standing charges are reduced or capped. Ofgem has not confirmed final 2026 cap levels here, so treat these as scenarios rather than predictions.
How to read these examples: Savings are calculated as the reduction in daily standing charge multiplied by 365 days. If a policy rebalances costs into unit rates, total bill savings could be lower (or differ by usage).
| Fuel | Example reduction | Annual saving | Who feels it most | What to do now |
|---|---|---|---|---|
| Electricity | 10p/day lower | £36.50/yr | Low users and smaller homes | Compare unit rate vs standing charge trade-offs |
| Electricity | 20p/day lower | £73.00/yr | Low-to-medium users | Check fixes that protect you from rises |
| Gas | 10p/day lower | £36.50/yr | Homes with low gas usage | Review boiler efficiency and thermostat schedule |
| Dual fuel | 10p/day lower on both fuels | £73.00/yr | Most households on both meters | Compare dual vs single-fuel deals by total cost |
Why your savings might differ
- Regional network costs: standing charges vary across Great Britain supply regions
- Payment method: direct debit vs prepayment can affect tariff structure
- Tariff type: fixed, variable, tracker, and time-of-use tariffs can price costs differently
- Policy rebalancing: if standing charges fall, unit rates may rise to fund fixed costs
How a standing charge cap could work (and what to watch for)
A cap would set a maximum standing charge suppliers can apply (either across the board or within certain tariff types). Ofgem would need to decide how to handle regional differences and how fixed costs are recovered overall.
- Ofgem consultation and decision: Ofgem may consult on options, impacts, and protections, then confirm the approach and start date.
- Cap design: could be a single UK-wide maximum, a regional maximum, or a cap linked to the existing price cap framework.
- Supplier implementation: suppliers adjust tariffs to comply. Some may redesign tariffs, for example lowering standing charges while altering unit rates.
- Customer outcomes: low users may see clearer savings; higher users may see smaller net changes if costs shift into unit prices.
Good signs when comparing tariffs
- Lower total annual cost at your usage, not just a lower standing charge
- Clear exit fees and a sensible fix length for your plans
- Transparent customer service and billing options
- Unit rates that make sense for your home and lifestyle
Potential trade-offs to check
- Unit rates rising as standing charges fall
- Different pricing between direct debit and prepayment
- Regional variations that affect the “headline” number
- Tariffs that look cheap on standing charge but cost more overall
Best practice: Compare based on your expected annual kWh usage. If you don’t know it, check your most recent bill or online account — or estimate using your property size and occupancy.
Regional considerations: why your standing charge may differ
In Great Britain, standing charges can vary by electricity distribution region and gas distribution zone. That’s why two households on the same tariff name can still see slightly different daily charges. A 2026 standing charge cap could be set nationally or could still allow regional maxima — the details matter.
Distribution networks
Local networks have different costs. Your standing charge can reflect how your region’s network charges are recovered.
Meter types and tariffs
Some tariffs (including smart and time-of-use options) structure pricing differently. Always compare using total cost at your usage.
Scotland and Wales
Rules are GB-wide under Ofgem regulation, but your region still matters. Postcode-based comparisons help reflect local pricing.
Quick win: If your current tariff’s standing charge feels high, don’t assume a future cap will fix it. Compare now — a different tariff today may already reduce your total bill.
Common mistakes when chasing standing charge savings
Standing charge reforms get a lot of attention — but many households lose money by focusing on one number. Avoid these common pitfalls when considering the impact of a 2026 cap or when switching now.
Mistake 1: Choosing the lowest standing charge
A low standing charge can be paired with a higher unit rate. What matters is the total annual cost for your expected kWh usage.
Mistake 2: Ignoring exit fees and fix length
If you fix now, check whether leaving early costs money — and whether you’re comfortable holding the tariff through likely price-cap changes.
Mistake 3: Using the wrong usage estimate
If your kWh estimate is too low or too high, the “best” tariff can change. Use last year’s bill if possible, or update your estimate after major home changes.
Mistake 4: Forgetting about meter and payment setup
Your meter type and payment method can affect available tariffs and pricing. A postcode-led comparison helps keep results realistic.
FAQs: Ofgem standing charge cap proposal and 2026 savings
Is the standing charge cap definitely happening in 2026?
No. It’s a proposal/discussion topic. Ofgem may consult, refine options, or choose an alternative approach. This page focuses on how to understand potential impacts and how to save regardless of the outcome.
Would a cap reduce my bill automatically?
It could reduce your fixed daily cost. But if costs are moved into unit rates, your overall bill change depends on how much energy you use. Comparing tariffs using your usage is the safest way to judge impact.
Who gains most from lower standing charges?
Usually households with lower consumption, because they pay the fixed fee every day even when usage is low. Savings are also more noticeable for people who are very cost-sensitive or are trying to keep bills predictable.
Does a standing charge cap mean unit prices will fall too?
Not necessarily. A standing charge cap addresses the fixed fee; unit rates are separate. In some policy designs, lowering standing charges could lead to higher unit rates to cover fixed system costs.
Should I wait until 2026 before switching?
If you’re currently on an expensive tariff, waiting can cost you. Comparing now lets you see if there’s a better fit today. You can also choose a tariff length that suits your appetite for future policy changes.
Will a cap apply to both electricity and gas?
That depends on Ofgem’s final scope. Some approaches could target electricity standing charges, others could include both fuels. If you have dual fuel, you’ll want to consider the combined effect.
Why households use EnergyPlus to compare energy
Standing charge changes are only one part of your energy costs. EnergyPlus helps you compare whole-of-market home energy tariffs with a focus on clarity and suitability.
Whole-of-market approach
We look across available tariffs and show options based on your postcode and details — not just a limited panel.
Plain-English comparisons
We help you compare the parts that matter: standing charge, unit rate, tariff length, and exit fees (where applicable).
Support from enquiry to switch
If you want help, we’ll guide you through the next steps and what information you may need from your current bill.
Customer comments
“The comparison was straightforward and the breakdown of standing charge versus unit price made it much easier to decide.”
— Homeowner, West Midlands
“I didn’t realise my tariff had a high daily charge. Switching based on total cost made a real difference.”
— Tenant, Greater Manchester
Ready to check your 2026 standing charge cap savings?
Don’t wait for policy changes to reduce your bill. Compare whole-of-market home energy tariffs by postcode and see options that could lower your total cost now.
- Quick form — we’ll match you with suitable tariffs
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