Ofgem changes to standing charges in 2026: what it means
Understand what may change to electricity and gas standing charges from 2026, who could be affected, and how to compare whole-of-market tariffs if your bills shift.
- Plain-English breakdown of standing charges vs unit rates
- What Ofgem proposals could mean for low and high energy users
- Check the best tariff type for your home in minutes
EnergyPlus is a whole-of-market UK home energy comparison service. We’ll show options that may help you reduce costs if standing charges or unit rates change.
Ofgem standing charge changes in 2026: what’s being discussed?
Standing charges are the daily fees you pay for having a gas and/or electricity supply, regardless of how much energy you use. Ofgem (the UK energy regulator) periodically reviews how these charges are set, including the costs they recover.
For 2026, you may see further changes or reforms to how standing charges and unit rates are balanced. The exact outcome depends on Ofgem decisions and supplier pricing. The key point for households is this: if standing charges change, your best tariff may change too—especially if you use very little energy, have a second home, or are trying to reduce usage.
This page is guidance for home energy customers in the UK. It explains how changes to standing charges can affect bills and how to respond by comparing tariffs. For current official positions and consultations, always refer to Ofgem’s latest publications.
Compare whole-of-market tariffs for your home
Tell us a few details and we’ll show available options. If standing charges rise or fall, your cheapest deal can shift—checking now helps you stay on track.
Tip: If you have a recent bill, keep it handy. Your current standing charge (p/day) and unit rate (p/kWh) help you compare like-for-like.
Why you’re hearing more about standing charges
Many households focus on unit rates, but standing charges can make up a noticeable portion of the bill—especially for low usage homes. When policy or cost allocation changes, suppliers can rebalance pricing between:
- Standing charge (a fixed daily amount), and
- Unit rate (what you pay per kWh used).
How changes could affect your bill (and what you can do)
If you use low energy
A lower standing charge can matter more than a slightly better unit rate. If standing charges rise, the opposite can happen—fixed costs become a bigger share of the bill.
If you use lots of energy
Unit rate usually dominates. If Ofgem reforms shift costs from standing charges into unit rates, higher usage homes may see bigger swings.
If you’re coming off a fix
When your fixed tariff ends, you often move to a variable tariff. That’s a key moment to compare—standing charges and unit rates can differ materially.
Practical next step: if your household can’t easily predict usage (e.g. new baby, home working, heat pump installation), compare tariffs using both current and expected usage scenarios.
Standing charge explained (without jargon)
Your energy bill typically includes two main components:
- Standing charge (pence per day): a fixed daily cost that helps cover supply and network-related costs.
- Unit rate (pence per kWh): the cost for each unit of gas or electricity you use.
If you use zero energy in a day, you still pay the standing charge. That’s why standing charge debates matter for people trying to reduce consumption.
Quick self-check: which matters more for you?
- Look at your annual kWh use (electricity and/or gas).
- Estimate annual standing charge: daily standing charge × 365.
- Compare that figure to your annual usage cost: unit rate × kWh.
If the standing charge makes up a large share, standing charge changes in 2026 could have an outsized effect.
Who could pay more or less if standing charges change?
There’s no one-size-fits-all outcome. If regulators or suppliers rebalance costs between standing charges and unit rates, winners and losers depend on usage patterns and home circumstances.
Households that may benefit from lower standing charges
- Low occupancy homes (e.g. single residents)
- People who’ve reduced use through insulation or efficiency upgrades
- Homes that are empty for parts of the year (standing charges still accrue)
- Some prepayment customers, depending on how pricing is structured
Households that may prefer more cost in unit rates
- Higher usage homes where a lower unit rate matters most
- Homes with electric heating or higher electricity demand
- Families where usage is more predictable year-round
- People able to shift usage (e.g. off-peak tariffs), where applicable
The most useful comparison is your annual cost, not just the headline standing charge. A tariff with a lower standing charge can still be more expensive overall if the unit rate is higher.
Worked examples: standing charge vs unit rate (illustrative)
The examples below show how the mix of standing charge and unit rate changes the annual cost. These are illustrative numbers (not forecasts) designed to help you understand what a 2026 rebalancing could mean.
| Scenario | Standing charge | Unit rate | Usage (kWh/yr) | Estimated annual cost | Who it tends to suit |
|---|---|---|---|---|---|
| A: Higher standing charge, lower unit rate | 60p/day | 22p/kWh | 3,100 | ~£901 | Medium/high use |
| B: Lower standing charge, higher unit rate | 35p/day | 27p/kWh | 3,100 | ~£964 | Lower use |
| C: Same two tariffs but low usage | A: 60p/day vs B: 35p/day | A: 22p vs B: 27p | 1,600 | A: ~£572 vs B: ~£559 | Very low use |
What to take away: for low usage, standing charge can dominate the difference. For higher usage, unit rate often becomes the deciding factor.
How to respond now (before any 2026 changes land)
1) Check your current rates
Find your electricity and gas standing charges (p/day) and unit rates (p/kWh) on your bill or online account.
2) Compare on annual cost
Ignore headlines. Compare the estimated annual cost based on your home’s usage and region.
3) Pick the right tariff type
A fixed tariff can add predictability. A variable tariff can track market changes. The best choice depends on your risk tolerance and timing.
Common mistake: focusing only on electricity. Many homes have both gas and electricity standing charges—review both, particularly if you’re considering going fully electric.
Regional and meter-type considerations
Your region affects your standing charge
Standing charges and unit rates can differ across Great Britain due to network costs and how regions are set up. Your postcode helps identify the right regional pricing when comparing.
Smart meters, prepay and multi-rate
If you’re on prepayment or a multi-rate setup (e.g. economy-style tariffs), the price structure may differ. Always compare tariffs designed for your meter type.
FAQs: Ofgem and standing charges in 2026
Will Ofgem remove standing charges entirely in 2026?
Not guaranteed. Changes depend on regulatory decisions and industry implementation. What’s more likely is a reform or rebalancing rather than a single universal outcome.
If standing charges drop, will unit rates go up?
They can. If less cost is recovered through a fixed daily fee, more may be recovered through unit rates. That’s why comparing annual cost is essential.
Could my direct debit change?
Yes. Suppliers may adjust monthly payments if your tariff prices change or if your balance/usage pattern suggests you’ll build debt or credit.
Is it worth fixing before 2026?
It depends on the fix available, how long it lasts, and your risk preference. Comparing fixed vs variable options against your usage is the best way to decide.
Do standing charges differ for gas and electricity?
Yes. Gas and electricity each have their own standing charge and unit rate. Many homes pay two separate standing charges (one for each fuel) on dual fuel.
Does switching affect my supply?
No physical interruption is expected—your gas and electricity still come through the same pipes and wires. Switching changes the company billing you.
Want personalised help? Use the comparison form and we’ll guide you through options based on your postcode.
Why compare with EnergyPlus?
Whole-of-market coverage
We compare a wide range of UK home energy tariffs so you can make an informed choice if pricing structures change.
Built around annual cost
Standing charges can mislead on their own. We focus on what you’re likely to pay overall based on your inputs.
Home-focused support
This service is for households, not businesses—so the guidance, language and comparison fit domestic bills.
What UK households say
“I didn’t realise the standing charge was adding so much each month. Comparing properly by annual cost helped us choose a better tariff.”
— Sam, Manchester
“Our fix ended and the new rates were confusing. The comparison made it clear what we’d pay over the year.”
— Aisha, Birmingham
“We’re low users and wanted to avoid high fixed costs. It was useful to see options that suited our usage.”
— Helen, Bristol
Trust indicator: comparisons are based on tariff pricing and your details (including postcode). Always confirm the final terms and any exit fees with the supplier before switching.
Ready to see which tariff suits you if standing charges change?
Use our whole-of-market comparison for UK homes. Submit your details and we’ll help you review options based on your postcode.
No scripts on this page. Your submission is handled securely via our standard lead form endpoint.
Before you switch, double-check:
- Any exit fees on your current fixed tariff
- Your meter type (credit, smart, or prepayment)
- Whether your tariff is single-rate or multi-rate
- How long you want price certainty for (if fixing)
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