How the UK Energy Price Cap Will Impact Home Energy Standing Charges in 2026
Stay ahead of energy changes: what every UK household needs to know about price caps, standing charges, and your home energy bill in 2026.
What is the Energy Price Cap?
The Ofgem energy price cap is the maximum amount energy suppliers can charge per unit of gas or electricity for standard variable tariffs. It aims to protect UK households from unfair price rises and applies to millions of homes. Adjusted frequently, the cap reflects wholesale energy costs, network charges, and government policy fees.
From April 2026 onwards, major changes are being proposed—especially in the mix between unit prices and standing charges.
Understanding Standing Charges
Standing charges are daily fixed amounts you pay to have your home connected to the energy grid, regardless of how much gas or electricity you use. They cover network maintenance, meter readings, and policy costs.
Even if you use little or no energy, you still pay this daily fee. It's a key part of your overall bill—so what happens to this charge under the 2026 price cap?
How the 2026 Price Cap May Affect Standing Charges
- 1. Possible Increase: Ofgem has suggested more costs may be shifted to standing charges in 2026 to ensure all households—and suppliers—contribute fairly to the grid's upkeep.
- 2. Less Control Over Bill: Higher standing charges mean you’ll pay a bigger fixed daily cost, even if you cut back on energy use. This is especially important for those trying to save by reducing energy consumption.
- 3. Variation by Region: Standing charges can differ by region and supplier, so comparing prices remains important!
- 4. Targeted Support: Government policy may also provide extra help for vulnerable households affected by standing charge increases.
Example: Comparing Today vs 2026 Standing Charges
| Year | Typical Daily Electricity Standing Charge | Typical Daily Gas Standing Charge | Notes |
|---|---|---|---|
| 2024 (current) | 53p | 29p | UK average, check your supplier for specifics |
| Projected 2026* | ~60–65p | ~30–36p | May vary based on Ofgem policy and market shifts |
*Figures are estimates based on public consultations and industry forecasts.
What Households Can Do to Offset Standing Charge Rises
- Compare suppliers frequently: Use trusted comparison sites to find the most competitive tariffs for your area.
- Cut actual usage: Even with higher standing charges, reducing wasted electricity and gas is the biggest way to cut your bill.
- Install smart meters: Track usage in real time to spot savings easily.
- Check for grants: Eligible for help? Look for support like Warm Home Discount and home energy efficiency grants.
- Consider fixed tariffs: If available, a fixed deal may provide peace of mind against further price changes.
Frequently Asked Questions: UK Energy Price Cap & Standing Charges
A: Not necessarily. While the cap limits unit costs, standing charges can still rise. Your final bill depends on both how much energy you use and the daily standing fee.
A: Ofgem is responding to increased grid maintenance, rising policy costs (like green levies), and trying to ensure suppliers can fairly recover these expenses—even from customers who use very little energy.
A: For most households, standing charges are unavoidable on standard variable and fixed tariffs. Some specialist prepay tariffs have low or zero standing charges, but unit rates are usually higher—so make sure to compare your options.
A: Regularly check your bills, monitor your usage, and use accredited energy comparison tools. Energy Plus customers can get personalised tariff reviews—ask us how.
Ready to Make Your Home Energy Bill Work for You?
With price cap changes on the horizon, the best move is to stay informed and act now. Our energy experts are here to help with personalised advice on lowering your standing charges and switching to a better deal.
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