Ofgem standing charge consultation 2025: what it means for your bills
Ofgem is consulting on how standing charges work in Great Britain. If changes go ahead, your daily fixed charge could be reshaped — and the best tariff for your home may change too. Compare whole-of-market energy deals with EnergyPlus and get a tailored switch recommendation.
- Plain-English summary of what’s being consulted on (and what isn’t)
- Who could pay more or less if standing charges change
- What you can do now to protect your household budget
- Whole-of-market comparison for home energy (not business)
Info is UK-focused for households in England, Scotland and Wales. Prices and eligibility depend on your meter type, region and payment method.
Compare whole-of-market energy deals in minutes
Standing charges can make a bigger difference than many people realise — especially if you use less energy, have a second home, or have been trying to reduce usage. If Ofgem’s consultation leads to changes, the “best value” tariff for your home could look different.
Use EnergyPlus to compare home energy tariffs across the market and get a shortlist based on your details. You’ll see how unit rates and standing charges interact — so you’re not choosing on headline price alone.
Helpful if you:
- have cut usage and want your bills to reflect it
- are on a standard variable tariff and want more certainty
- use prepayment or have recently moved home
- are considering a smart meter or time-of-use tariff
Prefer to read first? Jump to what Ofgem is consulting on or what you can do now.
Get your personalised comparison
Complete the form and we’ll show tariffs that fit your home — including the impact of standing charges.
Quick context: Ofgem’s consultation is about how standing charges could be set/structured. It doesn’t automatically mean everyone’s standing charge will drop, and any changes would follow further decisions and implementation steps.
What is a standing charge?
A standing charge is the fixed daily amount you pay to have a gas and/or electricity supply. You pay it regardless of how much energy you use. It’s shown as pence per day (e.g. 50p/day) and is added to your bill alongside the unit rate (p/kWh).
What it typically covers
- network costs (pipes/wires)
- metering and billing costs
- policy costs (varies by tariff structure)
Why it matters
If your usage is low, the standing charge can represent a large share of your total bill — so small changes can be meaningful.
Standing charge vs unit rate
Some tariffs look cheap per kWh but have a higher standing charge (or vice versa). The right option depends on your household’s consumption pattern.
Ofgem standing charge consultation 2025: what’s being considered
Ofgem’s standing charge consultation is focused on how fixed costs are recovered on household bills and whether the current approach is fair and effective. Ofgem may explore options that change the balance between:
- standing charges (fixed daily cost), and
- unit rates (cost per kWh you use).
Important: consultation vs decision
A consultation gathers views and evidence. Any changes would require a decision, followed by implementation details and timelines. Until then, your current tariff terms and the price cap methodology remain the basis for charges.
Why Ofgem is looking at standing charges
Affordability and fairness
Fixed charges can hit low-usage households harder. This can include single-person homes, people who are out at work most of the day, and households making big efforts to cut consumption.
Incentives to save energy
If more of the bill is fixed, the financial reward for using less is smaller. Rebalancing could strengthen incentives for efficiency — but it can also shift costs elsewhere.
Transparency
Consumers often compare tariffs using headline unit rates, then feel surprised by the size of standing charges. Ofgem is exploring whether alternative structures are clearer.
Recovering unavoidable network costs
Even if you use little energy, the grid still needs maintaining. The question is how to recover these costs in a way that’s balanced across households.
Who could pay less (and who could pay more)?
Any move to reduce standing charges would usually mean recovering more cost through unit rates (or through another mechanism). That can change who benefits.
More likely to benefit
- low-usage households
- small flats and single occupants
- homes with strong efficiency measures
- people who are away often
Could be less favourable
- higher-usage households
- larger families and all-day occupancy
- homes relying on electric heating
- properties with low insulation
Why it varies
Standing charges and unit rates differ by region, meter type and payment method. Your personal “break-even” point depends on how much energy you use.
Tip: If you’re unsure whether you’re a low, medium or high user, check your last 12 months’ kWh on bills or in your online account. When you compare, focus on the estimated annual cost for your usage — not just p/day or p/kWh.
What you can do now (before anything changes)
You don’t need to wait for the consultation outcome to take control of your energy costs. These actions help now and keep you ready if tariffs shift.
-
Compare tariffs using your real usage.
Standing charges can make “cheap” tariffs expensive for low users. Use your annual kWh (gas and electricity) where possible. -
Check your current standing charges and unit rates.
You’ll find both on your bill, in your app, or in your online account. Make a note of whether you’re on standard variable or fixed. -
Look for flexibility if you’re uncertain.
If you’re worried about being locked into the “wrong” structure, compare tariffs by exit fees and contract length. -
Reduce wasted consumption — but prioritise the basics.
Draft-proofing, thermostat control and efficient hot water settings usually outperform gadget-led savings. -
Re-check your deal at key moments.
Especially after moving home, installing a smart meter, changing household size, or switching to (or from) electric heating.
If you’re on prepayment
Prepayment tariffs can differ in how charges are presented and applied. When you compare, choose “prepayment meter” so results reflect your payment type and typical pricing.
Key comparisons: how standing charge changes can affect bills
Below is a simplified way to think about it. Exact impacts depend on your region and tariff. The goal is to show why “lower standing charge” isn’t always automatically cheaper overall.
Ready to see which combination fits your usage? Compare tariffs now.
Regional and household considerations (UK homes)
Standing charges and unit rates can vary by region because local network costs differ. Your tariff pricing is also influenced by your meter type and how you pay.
Where you live matters
- standing charge can be different across regions
- electricity networks are regional, so costs vary
- moving house can change your “best value” tariff
Your setup matters
- single-rate vs Economy 7 / time-of-use
- smart meter availability and suitability
- prepayment vs Direct Debit pricing
Northern Ireland: this guide is aimed at Great Britain (England, Scotland and Wales), where Ofgem regulates the retail market. If you’re in Northern Ireland, comparisons and regulation differ.
FAQs: Ofgem standing charge consultation 2025
Does the consultation mean standing charges will be abolished?
Not necessarily. A consultation explores options and gathers evidence. Ofgem could decide to keep standing charges broadly as they are, adjust how they’re calculated, or explore alternatives. Any change would follow a decision and a timeline for implementation.
If my standing charge goes down, will my bill definitely go down?
Not always. If fixed costs are recovered elsewhere (often through unit rates), higher usage can offset any saving from a lower standing charge. The best way to judge is to compare tariffs using your annual consumption.
Why are standing charges so different between regions?
A portion of the standing charge reflects local network costs and other regional factors. That’s why two households using the same kWh can see different totals if they live in different areas.
Will switching supplier change my standing charge?
It can. Different suppliers and tariffs set different standing charges and unit rates (within regulatory constraints, and depending on the type of tariff). That’s why comparing whole-of-market options can be worthwhile.
I’m a low user — how do I find a tariff that suits me?
Start by gathering your last 12 months’ usage (kWh) and then compare tariffs by estimated annual cost. Pay close attention to standing charge levels, contract length and exit fees. You can do this quickly via the EnergyPlus comparison form.
Do standing charges apply if I use zero energy?
In general, yes — the standing charge is a daily cost for having a supply available. If you have unusual circumstances (e.g. vacant property), speak to your supplier about your account and meter status.
Is this page advice?
This guide is information to help you understand the topic and compare options. Tariff suitability depends on your household usage, meter type, region and personal circumstances.
Trust and transparency
Whole-of-market comparisons
Compare across suppliers and tariff structures so you can weigh unit rates, standing charges and terms together.
Designed for households
This service and guide are for home energy customers in the UK — not business supply.
Clear results you can act on
We focus on estimated annual cost for your usage, plus contract length and exit fees, so you can switch with confidence.
What customers say
“The comparison was straightforward and helped me understand how standing charges were affecting my bill.”
Home energy customer, Great Britain
“I’d been focusing on the unit rate. Seeing the total annual estimate made it much easier to choose.”
Home energy customer, Great Britain
Testimonials are illustrative of customer experiences and do not guarantee savings.
Get a tariff that fits how your home actually uses energy
Whether standing charges change this year or not, you can still improve value by comparing unit rates, standing charges and contract terms side-by-side.
- Whole-of-market home energy comparison
- Results matched to your postcode and payment type
- Better clarity on standing charges vs kWh costs
Start your comparison
It takes a few minutes. Have your postcode and (if possible) annual kWh to hand.
Back to Guides & FAQs