Ofgem standing charge shake-up 2025: find the cheapest home tariff
If Ofgem changes how standing charges work in 2025, the “cheapest tariff” could look very different depending on your usage. Compare whole-of-market home energy deals with EnergyPlus and get a personalised result in minutes.
- Compare electricity, gas, or dual fuel for your home across a whole-of-market panel
- See estimated annual costs with your usage, region and meter type taken into account
- Spot tariffs that may suit low, medium or high usage if standing charges change
- Switch with confidence: clear breakdowns of unit rates, standing charges and key terms
Home energy only. Results depend on your region, meter and consumption. Ofgem proposals can change—this guide explains what to watch and how to compare.
Compare whole-of-market tariffs to find your cheapest option
Standing charges are the daily fees you pay just for having gas/electricity connected. If Ofgem changes the way standing charges are set in 2025, some households could see a bigger impact on their bill than others. The safest way to find the cheapest tariff is to compare using your own usage—not headline prices.
EnergyPlus helps you compare home energy deals across a whole-of-market panel, showing estimated annual cost (standing charge + unit rate) based on the details you provide.
What you’ll get after the form
- Tariffs ranked by estimated annual cost for your home
- Clear split between unit rate and standing charge
- Options for fixed, variable and tracker tariffs (where available)
- Notes for smart meters, Economy 7 and prepayment meters
Prefer to read first? Jump to what’s changing or how to compare tariffs.
Check my cheapest tariff
Complete the quick form to compare whole-of-market home energy deals.
Why the standing charge shake-up matters when hunting the cheapest tariff
Low usage households may benefit most
If more costs move from the standing charge into the unit rate, households that use less energy could pay less overall—depending on the final rules and tariff design.
High usage needs careful maths
A lower standing charge can be offset by a higher unit rate. If you use more energy (bigger home, electric heating), a “cheaper” headline standing charge may not mean a cheaper bill.
Regional differences can widen
Standing charges vary by region and meter type. A shake-up may change how those differences are applied—so it’s important to compare using your postcode.
If you’re specifically searching for the cheapest tariff after the Ofgem standing charge shake-up, focus on estimated annual cost rather than a single number. Energy bills are made up of both the unit rate (p/kWh) and the standing charge (p/day).
Ofgem standing charge shake-up 2025: what to know
Ofgem has been exploring reforms to standing charges, including options that could reduce the daily charge and recover more costs through unit rates. Exact outcomes, timings and supplier implementation can evolve, so treat “2025” as a planning horizon rather than a guarantee.
Standing charge basics (in plain English)
- Standing charge: daily fee for keeping you connected (in pence per day).
- Unit rate: what you pay per kWh used.
- Your bill depends on both, plus VAT and any discounts/credits.
Why Ofgem is looking at changes
- Concerns about fairness for low energy users and some vulnerable households.
- Transparency: making bills easier to compare.
- Balancing costs across networks, suppliers and policy charges.
What could change for “cheapest tariff” searches
- Tariff rankings may reshuffle even if wholesale prices stay similar.
- Low-standing-charge tariffs may come with higher unit rates.
- Economy 7 / multi-rate comparisons could change as day/night splits become more important.
- Fixed deals might price in expectations about the new structure.
To avoid guesswork, compare with your usage. If you don’t know your kWh, you can still start with an estimate and refine later.
What “cheapest tariff” really means after a standing charge change
The cheapest energy tariff for your home is the one with the lowest total cost for your consumption pattern in your region—over the period you expect to stay on it. That total cost is driven by a mix of standing charge, unit rate, and how stable the price is.
| You care about… | Check this first | Why it matters with lower standing charges |
|---|---|---|
| Lowest annual bill | Estimated annual cost | A lower standing charge can be offset by a higher unit rate—annual cost captures both. |
| Price certainty | Fixed vs variable vs tracker | Structure changes can cause price movement—fixed deals can protect you, trackers can follow the market. |
| Low usage | Standing charge + any minimum fees | If you use very little energy, the standing charge can dominate your bill. |
| Electric-only homes | Electric unit rate and meter type | If you’re all-electric, a unit-rate shift can have a bigger impact on your annual cost. |
| Economy 7 users | Day/night split | With more cost in unit rates, your off-peak usage share becomes even more important. |
Quick self-check before you compare
- If you’re home less (single occupant, small flat), you may benefit more from lower standing charges.
- If your home uses lots of kWh, unit rates typically matter more than the standing charge.
- If you’ve got an EV, heat pump or electric heating, compare with realistic kWh (or smart meter data).
How to compare tariffs if standing charges change in 2025
- Start with your postcode so prices reflect your electricity distribution region and gas charging area.
- Use your annual kWh from a recent bill, in-home display, or online account. If you’re unsure, estimate now and update later.
- Choose the right meter type (standard, smart, Economy 7, or prepayment). This can change available tariffs and rates.
- Compare total estimated annual cost and check the split between unit rate and standing charge.
- Review contract terms (exit fees, fix length, price cap exposure, and how/when rates can change).
How EnergyPlus estimates your annual cost
We combine the tariff’s unit rate(s) with your stated kWh usage and add the standing charge (daily charge × 365). Where a tariff has multiple rates (e.g. day/night), your meter type and usage pattern affect the estimate.
What to check before switching
- Any exit fees on your current tariff
- Whether you’re on a deemed or standard variable tariff
- Billing and payment method (Direct Debit vs prepayment)
- Whether your home has smart meter compatibility requirements
Tariff types to consider in 2025 (and how standing charges fit in)
Fixed
Unit rate and standing charge are fixed for the term (e.g. 12–24 months). Good if you want certainty.
Watch for: exit fees, what happens at end of fix, and whether the “fix” includes both fuel rates.
Standard Variable (SVT)
Prices can move, often in line with the Ofgem price cap updates (where applicable).
Watch for: rate changes and how quickly your bills reflect cap movements.
Tracker
Unit rates can track a market index or defined formula. Can be competitive but less predictable.
Watch for: how the tracker is calculated and any caps/floors.
Tip: If the standing charge drops and unit rates rise, trackers and SVTs may feel “more variable” in your monthly payments because a larger share of your bill becomes consumption-based.
Regional & meter differences (why your postcode matters)
Standing charges and unit rates can vary by region, partly due to network costs. Your meter type can also limit which tariffs are available and how rates are applied.
If you have a smart meter
- You may access a wider range of tariffs, including time-of-use (where offered).
- More accurate reads can reduce estimated bills and surprises.
- If comparing time-of-use, check when peak/off-peak hours apply.
If you’re on prepayment
- Available deals can be different from Direct Debit tariffs.
- Standing charges still apply (even if you don’t top up), so keeping track is important.
- Comparing with accurate usage helps avoid under-topping up in winter.
Common mistake: comparing tariffs using national averages
National averages don’t reflect your distribution region, your meter type, or your usage. For a standing charge shake-up, those details matter even more—use the form above to compare using your postcode and kWh.
Ways to cut costs regardless of the 2025 standing charge outcome
Match the tariff to your usage
If you’re low usage, standing charge matters more. If you’re high usage, unit rate dominates. Choose accordingly.
Check Economy 7 suitability
Economy 7 only works if a meaningful share of your electricity use happens off-peak.
Avoid accidental expensive defaults
When a fixed deal ends you can move onto a SVT. Set a reminder to compare before renewal.
If you’re ready, compare tariffs now and see which deals are cheapest for your home today—with a clear view of standing charges and unit rates.
FAQs: Ofgem standing charge shake-up 2025
Will standing charges be abolished in 2025?
A full removal is not guaranteed. Ofgem has explored options that could reduce standing charges and shift costs into unit rates. The final approach may differ and can take time to implement across suppliers.
If standing charges go down, will my bill definitely go down?
Not necessarily. If the standing charge decreases but the unit rate increases, your total cost depends on how many kWh you use. Low usage may benefit more; high usage may see little change or could pay more.
What’s the quickest way to find the cheapest tariff for my home?
Compare using your postcode, meter type and annual kWh. That gives you an estimated annual cost that includes both unit rates and standing charges. Use the EnergyPlus comparison form to see personalised results.
Do standing charges differ across the UK?
Yes. They can vary by electricity distribution region and other factors such as meter type and payment method. That’s why postcode-based comparison is important.
Is it worth fixing now if changes are coming?
It depends on your priorities. Fixing can provide certainty, but you may miss out if prices fall or structures change in your favour. Comparing fixed vs variable using your annual kWh can help you decide based on total cost and risk.
I don’t know my kWh usage—can I still compare?
Yes. Start with an estimate and refine it later when you have a bill to hand. If you have a smart meter, your supplier app may show annualised usage too.
Need a quick result? Use the form in Compare tariffs and we’ll rank deals by estimated annual cost for your home.
What homeowners and tenants say about comparing with EnergyPlus
“The breakdown made it obvious why a lower standing charge wasn’t actually cheaper for my usage. Switching was straightforward.”
— Hannah, Manchester
“I’m on Economy 7 and most sites were confusing. This showed the day/night rates clearly so I could compare properly.”
— Lewis, Cardiff
“I wanted the cheapest tariff, not a sales pitch. The annual cost view was what I needed.”
— Priya, Glasgow
Trust signals (what to look for when switching)
- Clear pricing: unit rates, standing charges and any exit fees shown upfront
- Tariff terms explained in plain English
- Postcode-based pricing to reflect regional differences
Ready to find your cheapest tariff for 2025?
Compare whole-of-market home energy deals using your postcode and kWh. See unit rates and standing charges clearly, so you can choose what’s genuinely cheapest for your household.
EnergyPlus is a comparison service for UK households. Availability and prices vary by region, meter and supplier criteria.
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