What is Ofgem’s standing charge cap proposal?

Ofgem has consulted on changes to how standing charges are set and recovered on domestic energy bills. A ‘standing charge cap’ proposal would limit the daily fixed charge suppliers can apply (with costs potentially recovered elsewhere in the tariff). The aim is to make bills fairer and reduce the impact of fixed costs, especially for lower-usage households.

How does the standing charge cap savings calculator work?

The calculator estimates how your annual costs could change under a standing charge cap by comparing your current standing charge and unit rates with a capped standing charge scenario. You typically enter your fuel type (electricity, gas, or both) and your usage so the tool can model the difference and show an estimated annual saving (or increase), depending on how remaining costs are recovered in unit rates.

Will I definitely save money if standing charges are capped?

Not always. If standing charges are reduced, suppliers may recover some costs through higher unit rates. Lower-usage households may be more likely to benefit, while higher-usage households could see smaller savings or potentially pay more depending on the final cap level and how charges are rebalanced. The calculator provides an estimate based on the assumptions used in the proposal scenario.

What information do I need to get an accurate estimate?

For best results, use your annual kWh usage for electricity and/or gas (from a recent bill or your online account), plus your current standing charge and unit rate if available. If you don’t have exact rates, you can still use typical usage figures to get a directional estimate, but results will be less precise.

Does the calculator include the Energy Price Cap or other Ofgem changes?

The calculator focuses on the impact of a standing charge cap scenario. It does not replace Ofgem’s Energy Price Cap information or your supplier’s full tariff terms. If wider policy changes (like price cap updates, regional variations, or tariff rule changes) occur, actual bills may differ from the estimate.

Can I reduce my standing charge today?

Standing charges vary by supplier, tariff, meter type, region, and payment method. You may be able to reduce them by switching tariff or supplier, subject to availability and eligibility. You can compare options and check potential savings at https://www.energyplus.co.uk/ to see whether a different tariff could lower your overall costs.

How can I use this estimate to choose a better energy deal?

Use the calculator result as a guide to understand how changes to fixed charges might affect you, then compare real tariffs using your usage. If your estimate suggests you’d benefit from lower fixed costs, focus on deals with lower standing charges and competitive unit rates. To explore switching options, visit https://www.energyplus.co.uk/ and compare based on your actual kWh usage.

Are the calculator results guaranteed or an official Ofgem figure?

No. The results are an estimate for guidance and depend on the assumptions used (including how costs are reallocated between standing charges and unit rates). Final outcomes will depend on Ofgem’s decisions and how suppliers implement any changes. Always check your tariff details before making a switching decision.

Ofgem standing charge cap proposal: savings calculator

Estimate what you could pay if Ofgem introduces a cap on daily standing charges — and see when switching tariff could matter more than any cap.

Get an estimated monthly and annual difference using your meter type and payment method
Compare “standing charge cap” impact vs unit rate changes (the part you can often control by switching)
Includes caveats: region, payment method, meter type, and what a cap might (and might not) cover

Estimate your standing charge cap savings Get your energy quote (whole of market)

Estimates only. Ofgem’s standing charge cap is a proposal; any change could vary by region, payment method and meter type.

Fast answer: how a standing charge cap could affect your bill

A standing charge cap (if introduced by Ofgem) would limit the daily fixed charge suppliers can apply. Your potential saving depends mainly on:

Your current standing charge

If your current standing charge is already at or below the cap, you may see little or no change.

Cap level (and what it covers)

A proposal may differ for electricity vs gas, and may vary by payment method and region.

What happens to unit rates

If standing charges fall, suppliers could change unit rates (p/kWh). Net impact can be smaller than expected.

Key takeaway: a standing charge cap (if implemented) is most likely to help households with higher-than-average daily standing charges, but it may not reduce bills if unit rates rise or if you can already access a cheaper tariff by switching.

Quick formula (what we estimate here)

Estimated annual standing charge difference = (your current daily standing charge - proposed cap) × 365 (only if your charge is above the cap).

What this page can’t know

We can’t predict the final cap level, whether it differs by region/meter, or how suppliers might adjust unit rates. Use this as a planning estimate, not a guarantee.

Standing charge cap proposal: estimate your savings

Use this calculator to estimate the maximum potential change in your bill from a cap on standing charges, assuming unit rates stayed the same. If your tariff includes separate electricity and gas standing charges, you can add both.

Step 1: Find your standing charges

Check your latest bill or online account: look for “standing charge” shown in p/day.
For dual fuel, you’ll usually see one for electricity and one for gas.
If you’re on a smart/prepay meter, standing charges can still apply and may differ.

Step 2: Choose a cap level to test

Because the cap is a proposal, we let you test a scenario. If you’ve seen a figure quoted in news coverage or consultations, enter it here in p/day.

Important: Even if standing charges are capped, suppliers could change unit rates or introduce other changes within Ofgem rules. The estimates below show the standing charge part only.

Calculator inputs (use pence per day)

Your electricity standing charge (p/day)

If you don’t have electricity (rare), leave blank.

Your gas standing charge (p/day)

If you’re all-electric, leave blank.

Proposed cap level to test (p/day)

Apply this cap to each fuel for a simple estimate.

Days to model

Useful if you want a monthly sense-check.

How to calculate (manual)

For each fuel: max(0, current - cap) × days ÷ 100 = £ difference. Add electricity + gas.

If your standing charge is below the cap

This estimate would be £0 for that fuel. A cap doesn’t automatically reduce everyone’s standing charge.

Next step: If your estimate suggests only small savings, it may be more impactful to compare tariffs (unit rates + standing charges). Use the quote form to see options available for your postcode and meter type.

Get a whole-of-market energy quote

If Ofgem changes the rules, tariffs can move quickly. Get a quote to compare today’s deals by postcode, payment method and meter type.

Good to know: If you’re on a fixed tariff, check for exit fees before switching. Some fixes are fee-free; others aren’t.

Compare: when a standing charge cap helps (and when it may not)

A standing charge cap mainly affects the fixed daily cost. Your overall bill is still driven by unit rates and usage. The table below shows common outcomes and what to do next.

Your situation	Likely effect of a cap	What to check	What to do
High standing charge, average usage	Potential reduction in fixed costs (if above cap)	Whether your supplier could adjust unit rates	Compare tariffs now; don’t wait solely for policy changes
Low standing charge, high usage	Small/none; your bill driven by unit rates	p/kWh rates and any discounts (direct debit, online)	Prioritise a competitive unit rate; consider fixing if suitable
Low usage household (single occupant, away often)	Standing charges can be a large share of your spend	Total annual cost (don’t focus only on p/kWh)	Run a full comparison using your annual usage if possible
Prepayment meter (traditional/smart PAYG)	Cap impact could differ; tariffs can be structured differently	Eligibility, debt recovery settings, and tariff availability	Check options carefully; ask supplier about switching routes
Fixed tariff with exit fees	Cap may not change your fixed terms immediately	Exit fee amount and time left on the fix	Compare the saving vs exit fee before deciding

Decision checklist: who a cap could suit most

You’ve checked your bill and your standing charge is well above the cap you’re modelling
Your usage is low to moderate, so fixed costs make up a bigger share of your bill
You’re on a tariff with high standing charge and no clear unit rate advantage
You can’t access better tariffs right now due to meter type or tenancy constraints

Who it may not help (or may help less)

Your standing charge is already at/below the proposed cap level
Your bill is dominated by high consumption (unit rates matter more)
A cap triggers higher unit rates in practice (net impact smaller)
You’re on a fixed deal and exit fees outweigh likely savings

Two realistic scenarios (with numbers)

Scenario A: dual fuel, above-cap standing charges

Assumptions (illustrative only): Electricity standing charge 60p/day, gas standing charge 35p/day. Proposed cap tested at 45p/day for each fuel. 365 days. Unit rates unchanged.

Fuel	Above cap	Estimated annual change
Electricity	15p/day	15 × 365 ÷ 100 = £54.75
Gas	0p/day	£0.00

Estimated maximum saving (standing charge only): £54.75/year. Real-world impact could be lower/higher if unit rates change or cap differs by fuel/region.

Scenario B: electricity-only flat, much higher standing charge

Assumptions (illustrative only): Electricity standing charge 70p/day. No gas. Proposed cap tested at 45p/day. 365 days. Unit rates unchanged.

Fuel	Above cap	Estimated annual change
Electricity	25p/day	25 × 365 ÷ 100 = £91.25

Estimated maximum saving (standing charge only): £91.25/year. If unit rates rose by even a small amount, the net saving could shrink.

Sense-check tip: Convert £/year to £/month by dividing by 12. For example, £54.75/year is about £4.56/month. This helps you judge whether switching (or changing payment method where possible) could have a bigger effect.

Costs, exclusions and common pitfalls (UK-specific)

Standing charges are regulated and complex. Here are the points that most often trip people up when estimating savings from any standing charge cap proposal.

1) Regional differences

Ofgem price cap levels (including standing charges) vary by electricity region and by fuel. A national headline figure may not match your area.

2) Payment method matters

Direct Debit, standard credit and prepayment can have different capped levels and tariff availability. A cap proposal could mirror that structure.

3) Unit rates may shift

A lower standing charge doesn’t automatically mean a lower bill. Suppliers could rebalance costs into the p/kWh rate within regulatory limits.

4) Fixed deals & exit fees

If you’re fixed, check your terms. Switching early can trigger fees. Weigh the estimated saving against any exit fee.

5) Meter type and tariff structure

Economy 7/time-of-use and some smart tariffs can be structured differently. Your “standing charge” can’t be judged in isolation.

6) Not every household is eligible for every deal

Some tariffs require Direct Debit, smart meter capability, or online billing. The “best” tariff on paper may not be available to you.

If you’re worried about paying your bills: you can get free, independent advice from Citizens Advice and may be eligible for supplier support (payment plans, emergency credit for prepay, or hardship funds depending on supplier).

FAQs: Ofgem standing charge cap proposal

What is a standing charge?

A standing charge is a fixed daily amount (shown in p/day) that covers costs like maintaining the energy network, metering and billing. You usually pay it even if you use no energy.

Is there an Ofgem standing charge cap now?

Ofgem sets a broader price cap for default tariffs which includes assumptions for standing charges and unit rates. A separate “standing charge cap” discussed in proposals would be a specific limit on the standing charge element. Check Ofgem updates for the latest position.

Would a standing charge cap apply to electricity and gas?

If introduced, it could apply differently by fuel (electricity vs gas) and may vary by region/payment method, similar to how the wider price cap varies. Always check how any final policy is defined.

Will my supplier automatically reduce my standing charge?

Only if your tariff’s standing charge is above the new allowed level and the rules require it to be lowered. If your charge is already below the cap, you may see no change.

Could a cap make unit rates higher?

Potentially, yes. Suppliers recover costs across standing charges and unit rates, within regulations. If standing charges are constrained, some costs might shift into p/kWh. That’s why it’s important to compare the total annual cost, not one line item.

Does this affect prepayment meters?

Prepayment customers can have different tariff structures and cap levels. If you have debt repayment settings on your meter, that can also affect what you pay each week. Use a comparison that supports your meter/payment type.

I’m renting — can I switch energy supplier?

In most cases, yes, if you pay the bills and your tenancy agreement doesn’t explicitly prevent it. If your landlord includes energy in the rent (or you’re on a managed supply), you may not be able to switch.

Should I switch now or wait?

If you can find a tariff with a lower total cost (standing charge + unit rates) and acceptable terms (including exit fees), switching can make sense now. Waiting for a proposal is risky because timelines and final rules can change.

How we assess this (methodology, limitations and sources)

Our calculation approach (transparent)

What we’re estimating: The standing charge portion of your bill under a hypothetical cap level you enter.
Inputs you provide: Your electricity standing charge (p/day), gas standing charge (p/day), and a cap level to test (p/day).
Formula used: For each fuel: difference = max(0, current - cap). Estimated £ change = difference × days ÷ 100. Total = electricity + gas.
Time period: We model 30/90/365 days for approximate monthly, quarterly or annual estimates.

Limitations (why your bill may differ)

Does not model changes to unit rates (p/kWh).
Does not account for regional cap differences or differing cap levels by payment method.
Does not include discounts, welcome credits, or conditional tariffs.
Does not include exit fees or switching timing.
Does not reflect special metering arrangements (e.g. complex time-of-use structures) beyond standing charge inputs.

Trust signals

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

We aim to explain proposals clearly and separate what’s confirmed from what’s speculative. Always verify the latest rules with Ofgem and your supplier.

Sources (UK)

Ofgem: Energy price cap
Citizens Advice: Energy supply and costs
GOV.UK: Energy Performance Certificates (EPC) (helpful for understanding your home’s efficiency context)

Note: Policy proposals and consultations can change. We update this guide when Ofgem publishes material changes.

Want a clearer answer for your home?

Use your postcode to compare tariffs across the market. It’s the quickest way to see whether switching could outweigh any standing charge cap changes.

Get your energy quote Re-check the calculator

Reminder: Always check tariff terms (exit fees, payment method requirements, and meter compatibility). Savings are estimates and depend on your household usage and rates.

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Updated on 3 Apr 2026