Ofgem standing charge reform 2026: how to switch
Understand what the Ofgem standing charge reform could mean for your home energy bills in 2026 — and compare whole-of-market tariffs with EnergyPlus to switch with confidence.
- Whole-of-market comparison for UK households (gas, electricity, or both)
- See options that may suit your usage pattern (low, medium, or high)
- Switch online with support at every step
- No jargon — clear guidance on standing charges, unit rates, and exit fees
Estimates and reform timelines can change. We’ll explain current proposals and help you compare today’s available tariffs in your area.
Ofgem standing charge reform 2026: what it means (in plain English)
Standing charges are the daily fixed amounts you pay for having a gas and/or electricity supply — even if you use no energy. Ofgem has been consulting on changes to how these charges work, including options that could reduce standing charges and recover costs through unit rates instead, or offer alternative tariff structures.
If reform is introduced in 2026, the “best” tariff could depend more than ever on how much energy you use. Many households will want to re-check their tariff when changes land — particularly if they’re on a standard variable tariff (SVT) or haven’t switched in a while.
Important: This guide explains likely impacts and how to switch. Exact implementation details may change as Ofgem finalises decisions. EnergyPlus helps you compare today’s whole-of-market options available at your postcode.
Why Ofgem is looking at standing charges
- Fairness: standing charges can feel unfair for low-usage households (e.g., single occupants, smaller homes).
- Transparency: consumers often compare unit rates but overlook daily charges.
- Bill shock: when standing charges rise, even careful users may struggle to reduce bills.
Compare whole-of-market tariffs
Use your postcode to see available home energy deals. If standing charges change in 2026, switching to a better-fit tariff could make a meaningful difference.
Tip: If you’re a very low user (e.g., electric-only flat, away from home often), standing charge changes can affect you most. Comparing tariffs now helps you set a baseline before reforms arrive.
Who could be affected most by standing charge reform?
Any reform that reduces standing charges and shifts costs into unit rates changes the balance between fixed and usage-based costs. That means different households may win or lose depending on consumption.
Low usage households
Often pay a high proportion of their bill in standing charges. If standing charges fall, total bills may reduce — but keep an eye on unit rates rising.
High usage households
If more costs move into unit rates, heavy users may pay more per kWh. Choosing the right fixed deal (or the right time to fix) could matter more.
Prepayment & vulnerable customers
Standing charges can cause debt to build when meters aren’t topped up. Reforms may help, but availability and protections can vary — compare carefully.
Regional note: Standing charges differ by region and network costs. Always compare using your postcode rather than national averages.
Standing charges vs unit rates: the part most people miss
Your bill is broadly made up of a daily standing charge plus a unit rate (pence per kWh). When comparing deals — especially around 2026 — you want to look at the total cost for your usage, not just the headline unit rate.
| Cost component | What it is | Why it matters for switching |
|---|---|---|
| Standing charge | Fixed daily fee for maintaining supply and networks. | If you use little energy, the standing charge can be a large share of your annual cost. |
| Unit rate (kWh) | The price per unit of gas or electricity you use. | If you use a lot, even a small unit-rate change can outweigh a lower standing charge. |
| Exit fees (some fixes) | Charges for leaving a fixed tariff early (not always). | If you want flexibility ahead of 2026, a no-exit-fee deal may suit you. |
| Payment method | Direct Debit, credit, or prepayment can have different prices. | Always compare using your actual payment method to avoid surprises. |
What reforms could look like (examples)
Public discussions have included ideas such as:
- Lower standing charges with higher unit rates to recover costs.
- Optional “low standing charge” tariffs for specific customer preferences (subject to supplier availability).
- Different ways of recovering network and policy costs, potentially changing bill structures.
What to do now: Don’t wait for 2026 to check your tariff. Switching to a better deal today can reduce your costs immediately, and you can review again when reforms are confirmed.
How to switch energy in 2026 (and now) — step by step
- Find your current tariff details: check your latest bill or online account for standing charge, unit rates, and whether you’re in a fixed term.
- Estimate your usage: look at annual kWh (electricity and gas). If you don’t know, we can still help you compare using typical usage, then refine later.
- Compare whole-of-market deals: use your postcode and preferences (fix length, payment method, green options).
- Check key terms: exit fees, discounts, how long prices are fixed, and whether there are any special conditions.
- Submit the switch: the new supplier contacts your current supplier. Your supply doesn’t stop — no engineer visit is usually needed.
- Take meter readings: on switch date (or close to it) so your final bill is accurate.
If standing charge reform affects pricing structures in 2026, the best-fit tariff may change. The good news is that reviewing your energy once or twice a year is usually enough to stay on track.
Ready to compare? Start with your postcode
We’ll show tariffs available where you live and highlight key costs like standing charges and unit rates so you can decide clearly.
Common mistakes when switching (especially with standing charges in focus)
Comparing on unit rate only
A tariff can look cheap per kWh but still cost more overall if the standing charge is high. Always consider the annual total for your usage.
Ignoring your payment method
Prices can differ for Direct Debit vs prepayment. Use the method you’ll actually pay with.
Overlooking exit fees
Some fixed tariffs charge if you leave early. If you want flexibility ahead of 2026, look for no-exit-fee options where available.
Not taking a meter reading
Accurate readings help prevent estimated bills and delays — particularly around the switch date.
Quick check: If you have a smart meter, the switch should still be straightforward. You’ll remain on supply throughout — switching is administrative.
Ofgem standing charge reform 2026 FAQs
Will standing charges definitely be scrapped in 2026?
Not necessarily. Ofgem has explored reforms and options. The outcome could be a reduction, an optional structure, or a different way of recovering costs rather than a full removal.
If standing charges go down, will unit rates go up?
They could. If suppliers recover fixed costs elsewhere, unit rates may rise. That’s why comparing based on your actual usage is essential.
Does switching affect my energy supply?
No. Your gas and electricity keep flowing. The change is handled between suppliers; you typically won’t need an engineer visit.
Can I switch if I’m in debt?
It depends on the type of debt and meter. Some customers can switch, and prepayment customers may have different rules. Compare options and check supplier terms.
Is it better to fix now or wait for 2026?
There’s no one-size answer. If you can save now, it may be worth switching. If you want flexibility, consider deals with shorter terms or no exit fees (where available).
Do standing charges differ in Scotland, Wales, or regions of England?
Yes, they can vary by region due to network costs. Always compare using your postcode to see the prices that apply to your home.
Want personalised guidance? Use the form in Compare & switch and we’ll show options available at your address.
Why switch with EnergyPlus (whole-of-market)
Clear comparisons
We highlight the components that drive your bill — including standing charges, unit rates and key tariff terms — so you can decide confidently.
Home-focused support
This service is designed for UK households. If you’re unsure what to pick, we’ll help you understand what matters for your situation.
Switching made simple
Switching is typically handled end-to-end. Your supply continues as normal, and you’ll be prompted for meter readings at the right time.
What customers say
“The comparison was easy to understand. Seeing the standing charge next to the unit rate helped me pick a tariff that actually fitted my usage.”
“Switched without any disruption and the steps were clear. I wish I’d checked sooner.”
Trust basics: Always check tariff terms, price guarantees, and whether any fees apply before confirming a switch.
Switch now, then review again when 2026 reforms land
If Ofgem’s standing charge reforms change how tariffs are priced, you’ll want a clear baseline today. Compare whole-of-market home energy deals and switch in minutes.
- Compare based on your postcode (regional pricing)
- See standing charges and unit rates clearly
- Choose gas, electricity, or dual fuel options
Get your comparison
Back to Guides & FAQs