Ofgem standing charge cap proposal 2026: what it means
Ofgem is consulting on changes to standing charges from 2026. If the proposal goes ahead, it could reshape how households pay for gas and electricity. Use EnergyPlus to compare whole-of-market tariffs and find a deal that fits your usage.
- Understand what a standing charge cap could change (and what it won’t)
- See who may gain most: low users, high users, prepayment and direct debit customers
- Compare household energy tariffs across the market and switch in minutes
Home energy only. No obligation to switch. Prices and availability vary by region, meter type and payment method.
What Ofgem’s standing charge cap proposal could mean for your home in 2026
Ofgem has discussed options to change how standing charges work from 2026, including a potential cap on the standing charge and/or changes to how fixed costs are recovered. Standing charges are the daily fees on your electricity and gas bill that you pay regardless of how much energy you use.
A cap could limit how high the daily charge can go. Depending on the final decision, suppliers may recover some costs elsewhere (for example, through unit rates), which means the impact can differ for low, medium and high energy users.
Important: This page explains what the proposal could mean and how to prepare. The exact details may change until the consultation is finalised and implemented.
Why this matters right now
- Standing charges can dominate bills for low users (for example, small flats or households that are often out).
- They’re applied every day, so you pay them even if your usage is very low.
- Changing the balance between standing charges and unit rates could change who pays more overall.
If you want to reduce your costs in the meantime, the most reliable action is still to compare tariffs and choose a plan that suits your usage pattern and meter type.
Compare whole-of-market home energy tariffs
With potential standing charge changes on the horizon, it’s a good time to sanity-check what you’re paying today. EnergyPlus compares whole-of-market household tariffs to help you find value whether you use a little, a lot, or something in between.
Tip: focus on your total annual cost
If standing charges are capped later, suppliers may adjust unit rates. When comparing today, look at the estimated annual cost for your usage and payment method, not just the headline standing charge.
What you’ll need (takes 2 minutes)
- Postcode (to show regional network charges)
- Current supplier (optional but helpful)
- Approx usage or bill amount (estimate is fine)
- Meter type (smart, standard credit, or prepayment)
Accessibility note: If you’re using assistive tech, you can skip straight to FAQs or use the jumplinks at the top of the page.
Who could benefit from a standing charge cap?
A cap could reduce the daily fixed cost on some tariffs. But if suppliers recover costs through unit rates, the overall winners and losers may depend on your usage. Here are the common household scenarios to consider.
Low energy users
If you use relatively little gas/electricity, a lower standing charge can have an outsized impact because the daily fee is a bigger share of your bill.
Prepayment customers
Depending on how the cap is set, it may improve fairness if standing charges are currently higher for certain meter/payment types. Always check total cost.
High energy users
If unit rates rise to compensate, households with higher usage could see smaller savings (or potentially higher totals). Comparing tariffs becomes even more important.
Practical takeaway: If you’re trying to protect yourself against bill changes, prioritise tariffs with competitive estimated annual cost for your usage profile rather than chasing any single line item.
How standing charges and unit rates build your energy bill
Your energy bill is typically a combination of a standing charge (p/day) plus a unit rate (p/kWh). Even if a standing charge cap is introduced, you’ll still want to understand the trade-off between the two.
| Bill component | How you pay | Why it exists | What could change under a cap |
|---|---|---|---|
| Standing charge | Daily fixed amount | Helps fund fixed costs (networks, metering, billing and other system costs) | A cap could limit the maximum daily charge and change how costs are recovered |
| Unit rate | Per kWh you use | Covers the cost of energy you consume (plus other costs depending on tariff) | If standing charges fall, unit rates may rise for some tariffs to balance revenue |
| Payment method | Direct debit, prepayment, receipt of bill | Affects admin/collection costs and available tariffs | The impact of any cap may differ by meter and payment type |
| Region | Your postcode area | Network charges vary across Great Britain | A cap may narrow differences, but regional variation may still matter |
A simple way to estimate your bill (today)
- Check your annual usage in kWh (from your bill or online account). If you don’t have it, use a reasonable estimate.
- Multiply usage by the unit rate (p/kWh) and convert to pounds.
- Add standing charge: daily standing charge × 365.
- Compare totals across tariffs and payment methods. This helps you see whether a low standing charge is offset by a higher unit rate.
Want to skip the maths? Use the comparison form and we’ll show tariffs matched to your postcode and meter type.
Regional differences: why your postcode still matters
Even with a standing charge cap, energy costs can vary by region because network charges differ across Great Britain. That’s why postcode-based comparisons remain essential—especially if changes move costs between standing charges and unit rates.
What can vary by region?
- Distribution network charges (electricity and gas)
- Supplier tariff availability and pricing strategies
- How standing charge vs unit rate trade-offs appear in your area
What you can do
- Compare using your exact postcode (not a nearby town)
- Check your meter type and payment method are correct
- Review the estimated annual cost, not just headline rates
If you’re unsure which region you’re in, don’t worry—entering your postcode in the EnergyPlus comparison form will automatically apply the right regional pricing assumptions.
How to prepare for 2026: smart actions you can take now
You can’t control policy outcomes, but you can make your tariff choice more resilient to changes in pricing structure. These steps are designed for UK households and work whether you’re on standard credit, smart meter, Economy 7 or prepayment.
1) Check your usage pattern
Low usage households often feel standing charges more strongly.
Find your annual kWh on a recent bill, or estimate if you’re new to the property.
2) Compare on total cost
If the market shifts costs from standing charges to unit rates, a “cheap standing charge” tariff can stop being cheap very quickly for some users.
3) Avoid common switching errors
Wrong meter type, wrong payment method, or missing Economy 7 rates can distort comparisons. Take 30 seconds to confirm your setup.
Common mistakes to avoid
- Comparing tariffs without including the standing charge in the total.
- Assuming a cap means your overall bill will definitely fall.
- Forgetting to account for multi-rate meters (Economy 7) and when you use power.
- Not using your actual postcode, which affects regional charges.
FAQs: Ofgem standing charge cap proposal (2026)
What is a standing charge on UK energy bills?
A standing charge is a daily fixed amount you pay for gas and/or electricity, regardless of how much energy you use. It’s listed separately from your unit rate (the per-kWh price).
Does a standing charge cap mean my bills will go down?
Not necessarily. If standing charges are capped lower, some costs may be recovered via unit rates or other tariff structures. Your overall bill depends on your usage, payment method, meter type and the tariff you choose.
When could the standing charge cap take effect?
The proposal relates to 2026, but implementation depends on Ofgem’s final decision and the timetable set following consultation. In the meantime, you can still improve your position by choosing a tariff that suits your household usage today.
Will it apply to both gas and electricity?
Any changes may apply differently across fuels and meter types. The best way to see the real-world impact for your home is to compare tariffs based on your postcode and setup.
Could suppliers increase unit rates if standing charges are capped?
It’s possible for pricing to rebalance. That’s why it’s sensible to compare the estimated annual cost rather than focusing on a single number on the tariff.
Is EnergyPlus a supplier?
No. EnergyPlus is a comparison service for home energy. We help you compare whole-of-market tariffs and support your switch.
What if I’m on Economy 7 or a smart meter?
Multi-rate tariffs can behave differently because you may have separate day and night unit rates. Make sure your meter type is accurate when you compare, so the results reflect your real usage pattern.
Still unsure? Jump back to compare energy deals and we’ll help you find tariffs that match your home and meter.
Trust and reassurance
Whole-of-market comparisons
Compare a wide range of household tariffs across suppliers, filtered by postcode, meter type and payment method.
Clear, bill-first guidance
We focus on what affects your total annual cost, including the standing charge and unit rate trade-offs.
Designed for UK households
Results account for regional pricing, common meter types and typical home energy setups in Great Britain.
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Ready to check your standing charge and total cost?
Whatever happens with Ofgem’s 2026 standing charge cap proposal, you can take control today by comparing whole-of-market home energy tariffs matched to your postcode.
EnergyPlus is a comparison service for UK home energy. Tariffs, rates and savings depend on personal circumstances, region and market availability.
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