What is Ofgem's standing charge reform for 2026?

Ofgem is consulting on changes to how standing charges work from 2026. The aim is to make the fixed daily charge fairer and give households more choice over how suppliers recover fixed network and policy costs. Proposals include reducing the standing charge and recovering more of those costs through unit rates, or offering alternative tariff structures.

How could reducing the standing charge affect my bill?

If the standing charge is reduced, you could pay less on days when you use little or no energy. However, some proposals may increase the unit rate (price per kWh) to recover costs elsewhere. Whether you save overall depends mainly on how much gas and electricity you use over the year.

Who is most likely to save from standing charge reform?

Low energy users often benefit most from a lower standing charge because a larger share of their bill is fixed. This can include smaller households, people who are out during the day, some flat/apartment residents, and customers with energy-efficient homes. High usage households may see less benefit if unit rates rise.

Will the standing charge be removed completely in 2026?

A complete removal is not guaranteed. Ofgem has discussed multiple options, which may include a significantly reduced standing charge, a zero-standing-charge style tariff, or other alternative tariff designs. Any final decision would be confirmed by Ofgem ahead of implementation.

Could standing charge reform increase my unit rate (price per kWh)?

Yes. If suppliers recover more fixed costs through unit rates, the price per kWh could rise. That means the reform may shift costs rather than remove them—so the best tariff for you will depend on your usage profile.

How do I estimate how much I could save?

Start with your annual electricity (kWh) and gas (kWh) usage from your bill or online account. Then compare (1) your current standing charge and unit rate with (2) an alternative scenario (lower standing charge, potentially higher unit rate). If you want a quicker answer, compare current deals using your actual usage and see which tariff structure costs less over 12 months.

Do I need to switch supplier to benefit from standing charge changes?

Not always. If reforms apply through the price cap or become standard across the market, your tariff could change without switching. But suppliers may also introduce new tariff options—so comparing plans could help you secure the best deal for your usage.

When will the 2026 standing charge changes take effect?

Timing depends on Ofgem's final decision and implementation schedule. The reform is expected to be part of changes considered for 2026, but exact dates and the final approach will be confirmed by Ofgem after consultation and approvals.

Will the reform apply to both electricity and gas standing charges?

Ofgem's standing charge discussions typically cover both electricity and gas, although the exact changes may differ between fuels. Check your tariff details for each fuel because standing charges and unit rates are set separately for electricity and gas.

What can I do now to reduce my standing charge impact?

You can compare tariffs with lower standing charges (where available), review whether a fixed or variable tariff suits your usage, and reduce overall consumption through efficiency measures. To explore potential savings, compare current energy deals and choose the tariff that best matches your annual kWh usage.

Ofgem standing charge reform 2026: how much could you save?

Use EnergyPlus to compare whole-of-market home energy deals and estimate what Ofgem’s proposed standing charge changes could mean for your household bill in 2026. See your options, then switch in minutes.

Understand the 2026 standing charge reform proposals (in plain English)
Check who might save most (low users, prepay, and high users)
Compare tariffs now to reduce costs while the changes are consulted on

Compare energy deals & estimate savings Jump to savings scenarios

Home energy only. Estimates depend on Ofgem’s final decision, your region, meter type and usage. No obligation to switch.

Compare whole-of-market tariffs and see your best next step

Ofgem’s standing charge reform is still being consulted on. That means the biggest money-saving move for most households is to review your current tariff and compare your options now—especially if you’re on a standard variable tariff (SVT) or your fix is ending soon.

EnergyPlus compares home energy tariffs from across the market, so you can:

See deals that suit your region, payment method and meter type
Estimate your bill using your usage (kWh) or typical household benchmarks
Understand how standing charge vs unit rate affects your overall cost

Quick context: Standing charges are fixed daily fees. If Ofgem reduces or reshapes them in 2026, some homes may pay less in fixed charges—but suppliers could recover costs elsewhere (often via the unit rate). The best outcome for you depends on how much energy you use.

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Accessibility note: If you prefer not to use the form, you can still read the guide below and return to compare tariffs when ready.

Why the 2026 standing charge changes matter

Standing charges have risen

Over recent years, many households have seen a bigger slice of their bill become fixed. That can feel unfair if you’ve cut usage or live alone.

Low users can be hit hardest

If you use less energy (smaller homes, well-insulated flats, careful usage), a high daily standing charge can reduce the benefit of saving kWh.

Savings aren’t automatic

If standing charges go down, unit rates may go up to recover costs. Your best tariff depends on how much you use—not just the headline change.

What is a standing charge (and what does it pay for)?

A standing charge is a fixed daily amount you pay for gas and/or electricity, regardless of how much energy you use. It’s typically shown on your bill as a cost per day (p/day). You’ll usually pay it even if your usage is zero.

Common items covered

Network costs for maintaining pipes, wires, and local infrastructure
Metering and data services (varies by meter type)
Supplier operating costs (billing, customer service)
Policy and industry costs (some levies are recovered through bills)

Important: Standing charges are not identical across the UK. They vary by:

Region (your local distribution network)
Payment method (direct debit, cash/cheque, prepayment)
Fuel type (electricity and gas are separate)

Ofgem standing charge reform 2026: what could change?

Ofgem has been exploring options to reform standing charges. The detail and timing can change, but the overall direction of travel is to consider whether some costs currently charged as a fixed daily amount should be recovered in a different way.

Potential reform approaches (examples)

Lower standing charge with a slightly higher unit rate (more pay-as-you-use)
Rebalancing between gas and electricity (depending on policy decisions)
Targeted changes for certain meter types or payment methods (e.g., reducing prepay differentials)
Alternative structures (e.g., options designed to protect low users)

What it means for your bill

Your total cost is broadly:

Total annual cost ˜ (standing charge × 365) + (unit rate × annual kWh)

So if standing charges fall, the unit rate may rise (or vice versa). Whether you save depends on where you sit on the usage spectrum.

Tip: When comparing tariffs, don’t focus on just one figure. Always compare using an annual cost estimate based on your kWh usage and your region. You can do that quickly in the EnergyPlus comparison.

How much could I save? Simple scenarios for 2026

Because the final reform details (and supplier pricing response) aren’t confirmed, the best way to think about savings is through scenarios. Use the table below to understand the direction of impact. Then use our comparison to see real deals available now in your area.

Illustrative scenarios (not a forecast)
Scenario	Standing charge change	Unit rate change	Who tends to benefit?	What to do now
A: Lower standing charge	Down	Slightly up	Often low users and small households	Compare tariffs using your kWh (savings depend on usage)
B: Costs shifted to usage	Down more	Up more	Strongly favours very low users; can disadvantage high users	Check if a fix suits you if you expect higher usage
C: Minimal change	Similar	Similar	Little difference	Your biggest lever remains choosing a competitive tariff

A quick way to estimate the impact (with your numbers)

Find your current standing charge (p/day) and unit rate (p/kWh) for electricity and/or gas on a recent bill or in your online account.
Note your annual usage in kWh (or your last 12 months if you have it).
Work out today’s annual cost: (standing charge × 365) + (unit rate × annual kWh).
Model a reform scenario by reducing the standing charge and increasing the unit rate (or vice versa), then compare totals.
Finally, compare real tariffs available now. Even small rate differences can outweigh future reforms.

Need your usage? Many bills show it as kWh for the period. If you have a smart meter, your supplier’s app may show it by month. If you don’t know it, we can still produce an estimate when you compare deals.

Who could save most if standing charges fall?

If reform reduces standing charges and shifts some costs into the unit rate, the people who typically benefit are those who use fewer kWh each year. However, every household is different—especially with electric heating, EV charging, or heat pumps.

Low-usage households

If your usage is low, a lower fixed charge can make your bill track your behaviour more closely.

Single occupants
Small, efficient homes
Homes empty during the day

Homes on prepayment

If reforms reduce differences between payment types, some prepay households could see fairer pricing (depending on the final design).

If you can move to direct debit, you may also access more tariffs.

High-usage households (mixed impact)

If more cost is moved into the unit rate, higher-usage homes may pay more overall. But a competitive fix can still reduce your bill versus SVT.

Regional reality: Standing charges vary by region. Two households with identical usage can pay different amounts depending on where they live. Your postcode matters for accurate comparisons.

How to cut your energy costs now (while reforms are pending)

Standing charge reform could change the shape of bills, but you don’t need to wait until 2026 to act. These are practical, low-risk steps many UK households take.

1) Check your tariff status

If you’re on SVT, you may be paying more than necessary.
If your fix is ending, compare before you roll onto a higher rate.
Look at both standing charge and unit rate—not just one headline figure.

Ready? Compare home energy deals.

2) Use your actual kWh if possible

Comparisons are most accurate when based on your annual kWh. If you’re not sure, use your last 12 months of bills or your smart meter app.

This matters because standing charge reforms can make usage the key factor in whether you save.

3) Review payment method and meter type

Direct debit often gives access to more tariffs.
If you have a prepayment meter, you may have options to switch (subject to eligibility).
Smart meters can help you track usage and avoid bill shocks.

4) Avoid common comparison mistakes

Comparing only standing charge and ignoring unit rate
Using the wrong postcode/region (changes rates)
Forgetting exit fees on existing fixes (if applicable)

FAQs: Ofgem standing charge reform and switching

Will standing charges definitely go down in 2026?

Not guaranteed. Ofgem may consult on options and then decide a final approach (or a phased approach). Even if standing charges reduce, suppliers may adjust unit rates to recover allowed costs.

If standing charges drop, will my bill automatically drop?

Not necessarily. Your total bill depends on both the standing charge and unit rate. Lower standing charges can be offset by higher unit rates—especially if you use a lot of energy.

Could reform affect gas and electricity differently?

It could. Any rebalancing depends on policy decisions and how costs are allocated across fuels. If you’re considering a heat pump, EV, or electric heating, it’s worth comparing tariffs based on your future usage profile.

Is it worth fixing a tariff now?

It depends on the deal and your risk preference. Fixes can give price certainty. If reforms change price structures later, you can review at the end of your fix (and check any exit fees if you want to leave early).

Do I need to know my kWh to compare?

No. You’ll get the most accurate estimate with your kWh, but you can still compare using household benchmarks and refine later. Starting with your postcode is a good first step.

Does EnergyPlus cover the whole market?

EnergyPlus is a whole-of-market comparison service for home energy, showing a broad range of available tariffs so you can make an informed choice based on your region, meter type and preferences.

Looking for a quick answer? The households most likely to benefit from lower standing charges are typically those with lower annual kWh usage. To check your position, compare tariffs using your postcode and (if you can) your usage.

Trust and social proof

Transparent comparisons

We focus on the total annual cost estimate—not just a single price element—so you can see how standing charge and unit rate work together.

Whole-of-market approach

Compare a broad range of home energy tariffs in one place, matched to your postcode, meter, and preferences.

Designed for UK households

Clear guidance on standing charges, price structures and switching—written for everyday households, not industry insiders.

What customers say

“It was helpful seeing the full annual cost rather than just one rate. Switching was straightforward.”

— UK homeowner, 2025

Common outcomes

Finding a better fix before a contract ends
Understanding if a low standing charge tariff is actually cheaper overall
Reducing bill shock by matching tariff to usage

Ready to see what standing charge reform could mean for you?

Compare whole-of-market home energy tariffs, matched to your postcode, and get a clear annual cost estimate. Switching is optional—your results are the first step.

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Estimates vary by region, meter type and usage. We’ll never ask you to switch without your consent.

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Updated on 14 Feb 2026