Ofgem ban on standing charges UK: latest update & what to do now
Get the latest, UK-focused update on Ofgem’s position on standing charges, what a potential “ban” could mean for households, and how to compare whole-of-market energy tariffs (including £0 standing charge options where available) with EnergyPlus.
- Understand what’s actually changing (and what’s not) for gas & electricity bills
- See how standing charges work, why they exist, and the main alternatives being discussed
- Compare whole-of-market tariffs in minutes with a quick form
Home energy only. We’re a comparison service (whole-of-market). Availability of £0 standing charge tariffs varies by supplier, meter type and region.
Ofgem ban on standing charges: the latest UK update (explained simply)
If you’ve searched for an “Ofgem ban on standing charges”, it’s usually because you’ve seen proposals and campaigning around reducing or removing standing charges from household energy bills. In practice, Ofgem has been exploring reforms and alternative tariff structures, rather than confirming a single, immediate UK-wide ban that removes standing charges for everyone overnight.
Standing charges are regulated elements within the price cap framework (for default tariffs) and they vary by region, fuel, and meter type. Any major change would need careful implementation to avoid simply shifting costs elsewhere in a way that disadvantages some households.
What this means for your bill today: For most households, standing charges still apply. Your best immediate lever is comparing tariffs (unit rates, standing charges, and overall annual cost) and checking whether any low/£0 standing charge options are available for your meter type and area.
Why the “ban” conversation matters
Standing charges can feel unfair when you use very little energy (for example, if you’re away from home, have a small flat, or are cutting back due to high costs). Proposals typically aim to reduce fixed daily costs and move more of the bill into the per-kWh unit rate—however that can increase costs for higher-usage households.
Quick bill check: compare whole-of-market options
Complete the form and we’ll use your details to find suitable home energy tariffs. We compare across the market, including tariffs with different standing charge structures where available.
- See estimated annual cost
- Compare unit rates vs standing charges
- Switch online (subject to eligibility)
No scripts on this page. You can review details before submitting.
Compare energy tariffs now (home energy)
If you’re concerned about standing charges, comparing the total cost is key. Some tariffs can look attractive on standing charge alone but have higher unit rates. Use the form below to compare whole-of-market options for your postcode and usage profile.
What you’ll get
- Whole-of-market comparison for households
- Side-by-side view of standing charge and unit rate
- Guidance on fixed vs variable and exit fees
- Switch support (where available)
Helpful to have to hand
Your postcode and, if possible, your latest bill (to confirm meter type and approximate usage). If you don’t have it, you can still compare—your results may be based on typical usage for your home.
Tip: If your main goal is to reduce fixed daily costs, look at the overall annual estimate and compare how each tariff balances the standing charge and unit rate. The cheapest option depends on how much energy you use.
Important: EnergyPlus provides comparison and switching support. We’re not Ofgem and we can’t change regulated charges. This page is general information for UK households, not financial advice.
Why standing charges are such a big issue for UK households
They’re paid even when you use nothing
Standing charges are daily fixed costs. If you’re a low user (or temporarily away), the standing charge can be a large share of your bill.
They vary by region and meter type
Costs can differ across electricity distribution regions and between credit, direct debit and prepayment meters—so it’s hard to know what’s “normal” without comparing.
They’re often misunderstood
Many people focus on unit price only. But the combination of standing charge + unit rate determines the total you pay across the year.
How standing charges work (plain English)
A typical domestic energy bill has two key parts: a daily standing charge and a unit rate (pence per kWh). The standing charge helps cover fixed costs linked to keeping you connected and serving your supply. The unit rate covers the energy you use.
| Bill component | What it is | Why it matters if you want lower standing charges |
|---|---|---|
| Standing charge (daily) | A fixed amount charged each day, regardless of usage. | Lowering this can reduce bills for low users, but suppliers may increase unit rates to recover costs. |
| Unit rate (per kWh) | The price you pay for each unit of energy used. | A tariff with a very low standing charge may have a higher unit rate, which can cost more overall if you use more energy. |
| Tariff type | Fixed, variable, tracker, or time-of-use (some require smart meters). | Some structures can shift costs between standing charges and unit rates, or vary pricing by time of day. |
| Region & meter type | Charges differ across UK regions and can differ by payment method and meter type. | Comparisons must be postcode-based to be accurate. |
Bottom line: Removing or capping standing charges doesn’t make the system “free”—it usually moves costs. That’s why it’s essential to compare based on your usage, not headlines.
If Ofgem banned standing charges: what would actually happen?
A true UK-wide “ban” would likely require suppliers to recover fixed costs differently. The most common alternative is increasing the unit rate so the bill is weighted more heavily toward usage. Another approach could be a limited or optional £0 standing charge tariff alongside existing tariffs.
Potential winners
- Very low energy users (small households, second homes, extended travel)
- Households who can keep usage consistently low without risking comfort/health
- Some people who mainly want predictable costs tied to usage
Potential losers
- Higher-usage households (larger families, electric heating, medical needs)
- Homes with poor insulation where reducing usage is harder
- Anyone whose tariff ends up with a higher unit rate after reforms
Practical takeaway: Don’t wait for policy changes to reduce today’s bill. Comparing tariffs and checking eligibility for support can help immediately.
Your options right now if you’re worried about standing charges
- Compare by total annual cost (not a single number). Standing charge and unit rate trade off against each other. What’s best depends on your usage.
- Check if £0/low standing charge tariffs are available for you. Availability can depend on region, supplier, meter type and payment method.
- Review your meter type and tariff structure. Some tariffs (including time-of-use) may suit households that can shift usage to cheaper periods (often smart-meter dependent).
- Look for support if you’re struggling. You may be eligible for help through your supplier or government-backed schemes depending on your circumstances.
- Switch safely. Check contract end dates and exit fees. Confirm whether prices are fixed, variable, or track a reference rate.
Common mistake
Choosing a tariff because it has a lower standing charge without checking the unit rate impact on your annual cost.
Quick win
Confirm your tariff end date and whether you’re on a default variable tariff—many households can find better value by comparing.
What we compare
Standing charge, unit rate, tariff type, contract length and estimated annual cost—so you can make a balanced decision.
FAQs: Ofgem standing charges and UK energy bills
Is Ofgem banning standing charges in the UK?
Ofgem has been considering reforms and alternative approaches to standing charges. For most households, standing charges still apply, and any broad change would likely be phased and may involve cost shifting into unit rates.
Can I get a tariff with no standing charge?
Sometimes, depending on supplier availability, region and meter type. Where offered, these tariffs typically have higher unit rates. Use the comparison form to check what’s available for your postcode.
Why do standing charges differ by area?
Electricity standing charges can vary across distribution regions. Gas can vary too. This is one reason comparisons should be postcode-based.
Do prepayment customers pay standing charges?
Standing charges can apply to prepayment meters. The way costs show up can differ depending on meter setup and supplier. Comparing options can help clarify what you’ll pay day-to-day.
Should I switch tariff because of standing charges?
Switch if it reduces your overall annual cost or better suits your usage pattern (for example, time-of-use). Focusing on standing charge alone can be misleading.
Is this page official Ofgem guidance?
No. This is consumer-focused information for UK households to help you understand the topic and compare energy deals. For official announcements, refer to Ofgem directly.
Still unsure? Submit the form above and we’ll help you compare options based on your postcode and circumstances: go to comparison form.
Trust indicators & what customers value
Whole-of-market comparisons
We focus on helping UK households compare across a wide range of suppliers and tariff structures—so you can make a decision based on total cost, not guesswork.
Clear tariff breakdown
Customers tell us the most helpful part is seeing standing charges and unit rates side-by-side, with an estimated annual cost for their postcode.
Support when switching
If you choose to switch, we aim to make the process straightforward. You can ask questions before you commit to a tariff.
Customer feedback highlight: “I didn’t realise the standing charge was making my bill so expensive even when I used less. Comparing the total annual estimate made it much clearer.”
Feedback examples are illustrative of common customer experiences; individual savings vary.
Don’t wait for a standing charge “ban” to lower your bill
Compare whole-of-market home energy tariffs today. We’ll help you find options that fit your usage—whether that means a lower standing charge, a better unit rate, or a better balance of both.
EnergyPlus.co.uk is a UK comparison service for household energy. Tariff availability and savings depend on your postcode, meter type and consumption.
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