What is Ofgem’s standing charge cap proposal for 2026?

Ofgem is consulting on changes to how standing charges are set, including a potential cap from 2026. Standing charges are the fixed daily costs you pay for being connected to the gas and/or electricity network, regardless of how much energy you use. A cap could limit how high those fixed charges can go (subject to Ofgem’s final decision and implementation details).

When could the standing charge cap start and who decides?

The proposal discussed is for 2026. Ofgem would make the final decision after consultation, with any changes then reflected in supplier pricing and tariffs in line with regulatory timelines.

How much could I save if standing charges are capped?

Potential savings depend on your current tariff’s standing charges, your region, meter type, and whether you have electricity, gas, or both. If your current standing charge is above the eventual cap, your bill could reduce by the difference across the year. To estimate, compare your current daily standing charge(s) to the proposed cap level once published and multiply by 365 (or 366 in a leap year).

Would a standing charge cap reduce my unit rate (price per kWh) too?

Not necessarily. A cap targets the fixed daily charge. Depending on how Ofgem designs the change, some costs could shift between standing charges and unit rates, which may affect different households in different ways.

Who benefits most from a standing charge cap?

Households with low energy usage often feel standing charges most because the fixed cost makes up a larger share of their bill. A cap could particularly help low-use customers, but the overall impact depends on whether any costs move into unit rates.

Will the cap apply to both electricity and gas standing charges?

That depends on Ofgem’s final policy design. Proposals may cover electricity, gas, or both, and could vary by tariff type or metering arrangements. Check the final Ofgem decision and your tariff details when implemented.

How do I find my current standing charge and compare tariffs?

You can find your standing charge on your bill, online account, or tariff information label. To compare, look at both the daily standing charge and the unit rate (p/kWh) for electricity and gas. For help choosing a tariff that suits your usage, you can explore options with Energy Plus: https://www.energyplus.co.uk/

Should I switch now or wait for 2026 changes?

If you’re on an expensive tariff today, switching could still save money before any 2026 changes take effect. The best choice depends on exit fees, your contract end date, and current market rates. Reviewing your tariff now and checking alternatives can help you avoid overpaying while regulatory changes are still being decided.

Can Energy Plus help me reduce my energy bills?

Yes. You can review available tariffs and learn about ways to manage your usage and costs. Visit Energy Plus to explore your options: https://www.energyplus.co.uk/

Ofgem standing charge cap proposal 2026: what you could save

Understand what the proposed standing charge cap could mean for your household bills in 2026 — and compare whole-of-market energy tariffs today to cut costs sooner.

Clear, UK-focused breakdown of how standing charges work and why they matter
Examples of potential 2026 savings for low, medium and higher usage households
Compare suppliers and tariffs in minutes with EnergyPlus.co.uk (whole-of-market)

Check your savings (free comparison) Read the key details

Information is for guidance and may change as Ofgem consults and finalises decisions. Savings depend on your meter type, region, usage and tariff.

Compare energy tariffs now — don’t wait until 2026

The Ofgem standing charge cap proposal is aimed at reducing the fixed daily charge you pay for gas and electricity. If it goes ahead, it could help many households — especially people with low energy usage or those who are out of the home a lot.

But your biggest opportunity to save is often the tariff you’re on today. EnergyPlus.co.uk is a whole-of-market comparison service for home energy, helping you check available deals quickly.

Quick tip

Standing charges are only part of your bill. The unit rate (price per kWh) often drives the biggest savings for average-to-high usage homes. Comparing both together is the safest way to cut costs.

What you’ll need (takes 30 seconds)

Your postcode (to match your regional standing charge and network area)
Contact details to send your personalised comparison
Optional: latest bill or annual usage (kWh) for higher accuracy

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Fill in the form and we’ll help you compare available home energy tariffs.

Why the standing charge cap proposal matters for households

Lower fixed costs

Standing charges are paid every day, even if you use little energy. A cap could reduce the fixed part of your bill, which is especially important for small flats, single occupants, and people who are often away.

More predictable budgeting

Because the standing charge is independent of usage, it can feel unavoidable. If the cap is introduced, it may make bills easier to understand and help households plan monthly direct debits with fewer surprises.

Fairness across usage types

Any change to standing charges can shift where suppliers recover costs (standing charge vs unit rates). That’s why it’s important to compare total annual cost, not just one line on your bill.

What is a standing charge (and why do we pay it)?

A standing charge is a daily fixed amount you pay for having a gas and/or electricity supply. It’s separate from the unit rate (the cost per kWh you use). Standing charges can vary by region, meter type, and whether you pay by direct debit or another method.

What it typically covers

Maintaining the energy network and metering
Supplier operating costs (billing, customer service)
Some policy and system costs recovered through bills

Why it can feel expensive

You pay it even when your usage is low
It’s charged on each fuel (gas and electricity)
It’s less visible than usage costs until you check the breakdown

Important: If standing charges are capped or reduced, some costs may be recovered elsewhere (for example, through unit rates). The best way to judge value is by comparing the estimated annual cost for your own usage.

Ofgem standing charge cap proposal for 2026: the key points

Ofgem has discussed potential reforms to standing charges, including capping or rebalancing how fixed costs are recovered. The aim is to address concerns about fairness and affordability — particularly for customers who use less energy but still face high fixed daily charges.

What a “cap” could mean

A cap would set a maximum daily standing charge. If a supplier’s standing charge is above the cap, it would need to come down. Depending on the approach, suppliers may adjust unit rates to recover costs.

Why 2026 matters

Household energy pricing changes often require consultation, implementation time, and alignment with price cap periods. The “2026” timing is commonly discussed in relation to how reforms could be rolled out after consultation and operational changes.

What to watch as decisions are finalised

Question	Why it affects your bill
How low is the cap?	The tighter the cap, the bigger the potential reduction in fixed charges — but it may increase the likelihood of changes elsewhere (like unit rates).
Does it vary by region?	Standing charges differ across Great Britain due to network costs. Any regional approach could change who benefits most.
How are costs rebalanced?	If fixed costs shift into unit rates, high-usage households may see less benefit (or different impacts) than low-usage households.
What about prepayment?	Payment method and meter type can affect rates. Watch for how reforms treat prepayment and smart meters to ensure fair outcomes.

If you want practical savings now, jump to what you can do today or use the comparison form to check whole-of-market deals.

Potential 2026 savings: worked examples

Below are illustrative examples of how a standing charge cap might translate into annual savings. Actual figures depend on Ofgem’s final approach, your region, meter type, tariff structure, and how suppliers adjust unit rates.

How to read this: the example shows savings from reducing the standing charge only. If unit rates increase as part of rebalancing, net savings could be lower — which is why comparing total annual cost is essential.

Household type	Illustrative standing charge reduction	Estimated annual saving	Who it helps most
Low usage (e.g., small flat / single occupant)	~10p per day on electricity + ~10p per day on gas	~£73/year (20p × 365)	People paying a high fixed cost relative to usage
Medium usage (e.g., 2–3 person household)	~7p per day on electricity + ~7p per day on gas	~£51/year (14p × 365)	Households with average use and higher regional standing charges
Higher usage (e.g., larger home / more occupancy)	~5p per day on electricity + ~5p per day on gas	~£36/year (10p × 365)	Savings possible, but overall cost still driven by unit rates

What could reduce (or increase) your net saving?

If unit rates rise

A lower standing charge may be partly offset by higher unit rates. This matters most if you use more kWh (for example, electric heating or a larger household).

If your current standing charge is already low

Some tariffs and regions already sit nearer to a likely cap level. In that case, the direct standing-charge saving may be smaller — but you might still save by switching tariff now.

What you can do now to save (regardless of the 2026 decision)

Check your current standing charge and unit rate on a recent bill or in your supplier app. Don’t compare on standing charge alone.
Estimate your annual usage (kWh) if you can. Even a rough figure improves accuracy for “standing charge vs unit rate” trade-offs.
Compare whole-of-market options to see if a different tariff reduces your overall annual cost today.
Review payment method and meter type. Smart meters and direct debit tariffs can differ, and regional pricing can change outcomes.
Set a reminder to re-check when Ofgem updates or finalises reforms — but don’t delay if you can save now.

Common mistake to avoid

Choosing a tariff with a very low standing charge but a higher unit rate can cost more across a year for medium and high usage homes. Always compare based on your estimated annual cost.

Ready to check your options? Use the comparison form to get started.

Regional considerations: why your postcode matters

In Great Britain, standing charges and unit rates can vary by electricity distribution region and gas network area. That’s why two households with identical usage can pay different amounts depending on location.

Urban vs rural

Network and infrastructure costs can differ, which can influence standing charges and unit rates.

Electricity-only homes

If you don’t have mains gas, the electricity standing charge becomes more significant — and unit rates matter even more.

Meter types and tariffs

Smart meters, traditional credit meters, and prepayment arrangements can have different price structures.

FAQs: Ofgem standing charge cap and 2026 savings

Will a standing charge cap definitely happen in 2026?

Not necessarily. Proposals can change following consultation and impact assessment. Treat timelines as indicative until confirmed by Ofgem and implemented by suppliers.

Could my bill go up even if the standing charge is capped?

It’s possible. If suppliers recover more costs through unit rates, higher usage households could see smaller net savings or, in some cases, higher total costs. Always compare based on estimated annual cost for your usage.

Who is most likely to benefit from lower standing charges?

Households with lower energy consumption tend to feel standing charges more strongly, because the fixed cost forms a larger share of the bill.

Do standing charges differ between gas and electricity?

Yes. You usually pay separate standing charges for each fuel, and they can differ by region and tariff.

Is EnergyPlus.co.uk tied to one supplier?

No. EnergyPlus.co.uk is a whole-of-market comparison service for home energy, helping you review available options rather than pushing a single provider.

What’s the quickest way to estimate my savings?

Start by comparing tariffs based on annual cost using your postcode and typical usage. You can do that via the form on this page.

Trusted comparison, built for UK households

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“The comparison was clear and I could see the annual cost, not just headline rates.”

— Home energy customer

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“I liked that it wasn’t just one supplier — it helped me understand what was available.”

— UK household

Helpful support

“Quick to respond and explained standing charges vs unit rates in plain English.”

— Residential customer

Trust note: Always check tariff terms, exit fees, and whether prices are fixed or variable. If you’re unsure, compare on total annual cost rather than focusing on one price component.

See if you can save before 2026

Whether or not the Ofgem standing charge cap lands in 2026, you can still reduce your household energy costs by switching to a better tariff. Compare whole-of-market options with EnergyPlus.co.uk.

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Switching suitability depends on your tariff terms, meter, and circumstances.

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Updated on 14 Feb 2026