Ofgem ban on standing charges UK: latest update (and what to do now)
Find out where Ofgem is up to on standing charges, what “ban” proposals really mean for household bills, and compare whole-of-market home energy deals with EnergyPlus.co.uk.
- Clear explanation of Ofgem’s current position and consultations
- How standing charges affect pay-as-you-go, low users and high users
- Simple next steps to reduce costs: compare tariffs and supplier options
Home energy only (not business). Standing charge rules vary by region, meter type and payment method. We’ll show options based on your postcode.
Is there an Ofgem ban on standing charges in the UK?
There is no blanket ban in place on standing charges for households in Great Britain (England, Scotland and Wales). Ofgem has been exploring reforms because standing charges have risen in recent years and can feel unfair—especially if you use very little energy.
However, standing charges help recover costs that don’t depend on how much energy you use (for example: maintaining the network, metering and billing, and certain policy costs). Any change generally involves a trade-off: lower standing charges often mean higher unit rates (pence per kWh), or costs being moved elsewhere.
EnergyPlus takeaway: Headlines about a “ban” can be misleading. What matters for your bill is the total cost for your usage (standing charge + unit rates), and whether you can switch to a better tariff for your home.
What the “latest update” means in practice
Ofgem’s direction of travel has focused on making tariffs clearer and fairer for different types of households, including options that could reduce standing charges for some customers while maintaining cost recovery. If standing charges were reduced or removed on certain products, many households would likely see unit rates rise to compensate.
- Low users (e.g. small flats, single occupants, very efficient homes) often prefer lower standing charges.
- Higher users (e.g. larger households, electric heating) may prefer lower unit rates even if standing charges remain.
- Prepayment meter customers have historically faced higher standing charges in some cases, and reforms may affect this balance.
Compare whole-of-market home energy deals
If standing charges change later, suppliers may adjust tariff structures. The quickest win today is usually to compare based on your postcode and usage and switch if you can save.
Why compare now?
- Standing charges vary by region, meter type and payment method.
- Different tariffs can suit different usage patterns.
- Switching can lock in a better structure for your household.
Why standing charges exist (and why they’re controversial)
They cover fixed costs
Parts of energy supply cost money regardless of usage—network upkeep, metering and certain administration costs. Standing charges help recover those costs.
They affect low users most
If you use little energy, a higher portion of your bill can be the standing charge. That can feel unfair for careful users or empty properties.
Removing them shifts costs
A “ban” rarely makes costs disappear—it usually moves them into unit rates or alternative charges, which can increase bills for some households.
That’s why the best question isn’t “Will standing charges be banned?” but “Which tariff structure is best for my home right now?”
Who might benefit if standing charges are reduced?
If Ofgem reforms lead to lower standing charges on certain tariffs, the impact will depend on your energy usage. As a rule of thumb:
| Household type | Potential advantage of lower standing charges | What to watch |
|---|---|---|
| Low energy use (small flat, single occupant) | More of your bill is fixed today, so reductions can help. | Unit rates may rise; compare total annual cost. |
| Medium use (typical family) | Could be neutral overall depending on tariff design. | A small unit-rate change can outweigh standing-charge savings. |
| High use (large home, electric heating) | Lower standing charges may matter less as usage dominates the bill. | Higher unit rates can increase costs; focus on kWh price and tariff fit. |
| Empty/second property (very low usage) | Lower standing charges could reduce unavoidable daily costs. | Some tariffs or suppliers may have eligibility limits; check terms. |
If you’re unsure of your usage, you can still compare. Many households can estimate from recent bills, smart meter apps, or by choosing a “low / medium / high” usage band when prompted in the quote journey.
What you can do now (regardless of Ofgem changes)
1) Compare on total cost
Look at the combined effect of standing charges + unit rates. A low standing charge can be outweighed by a higher kWh price if you use more energy.
2) Check your meter & payment type
Costs and options can differ for credit vs prepayment, and for smart meters. We’ll tailor results based on your details.
3) Switch when it suits you
If your current deal is poor value, switching can be the biggest lever. If you’re on a fixed tariff, check exit fees before moving.
Common mistakes when judging standing charges
Comparing the daily charge only
Two tariffs can have the same standing charge but very different unit rates. Always compare estimated annual cost based on your usage.
Ignoring electricity vs gas differences
You may pay separate standing charges for electricity and gas. If you’re all-electric, the electricity standing charge matters more in total.
Not accounting for regional pricing
Standing charges and unit rates vary by distribution region. Your postcode is essential for accurate comparisons.
Missing fixed tariff terms
A fix can provide certainty, but check the tariff end date, any exit fees, and what you’ll move onto afterwards.
FAQs: Ofgem standing charges and your home energy bill
What is a standing charge?
A standing charge is a daily fixed amount you pay for each fuel (electricity and/or gas), regardless of usage. It’s added to your bill alongside unit rates.
Can Ofgem remove standing charges completely?
Ofgem can change rules and approve structures suppliers can offer, but if standing charges reduce, costs typically shift into unit rates or other charges. The net impact varies by household usage.
Will a “ban” make bills cheaper?
Not necessarily. If the standing charge is reduced, unit rates may rise. Some low-usage homes could benefit, while higher-usage homes might pay more.
Do standing charges differ across the UK?
Yes. Prices vary by region in Great Britain. Northern Ireland’s market arrangements differ from GB, so availability and pricing may not match GB tariffs.
Can I avoid standing charges by switching supplier?
Most standard tariffs include a standing charge. If alternative structures exist, eligibility can vary. The practical approach is comparing whole-of-market options based on your usage.
Is this page advice?
This is general information for UK households. For your exact costs, use your latest bill and compare tariffs tailored to your postcode and meter details.
Tip: If you’re focused on standing charges, ask yourself one extra question: “What is my likely annual usage?” It’s the fastest way to choose between tariff structures.
Trust & transparency
Whole-of-market comparison
We help you compare a broad range of UK home energy options, so you can focus on the tariff that fits your household.
Plain-English breakdown
We highlight what matters: standing charges, unit rates, tariff length, payment method and any key terms.
Designed for households
This page is for home energy customers (not business). Results are tailored by postcode for accuracy.
What customers say
“The explanation of standing charges finally made sense. I compared based on my usage and found a better deal.”
— Homeowner, Manchester
“Quick form, clear results. Helpful to see how tariffs differ by region.”
— Tenant, London
“I thought a lower standing charge was always best—turns out unit rate mattered more for us.”
— Family household, Cardiff
Testimonials are illustrative of customer experiences and may not represent typical outcomes. Always check tariff terms and eligibility.
Ready to see tariffs with lower standing charges (where available)?
Compare whole-of-market home energy deals in minutes. We’ll tailor results by postcode so you can judge the real total cost—whatever Ofgem decides next.
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