Ofgem standing charge cap proposal 2026: who saves most?
If Ofgem introduces a standing charge cap in 2026, the biggest winners are likely to be lower-usage households and people who feel the daily charge is unfair. See who could benefit, what to watch for, and compare whole-of-market tariffs with EnergyPlus.co.uk.
- Understand the proposal and what it could change for gas & electricity bills
- Identify which household types are most likely to save (and who may not)
- Compare deals across the whole market in minutes (including fixes and trackers)
Information is for UK home energy. Savings depend on usage, tariff type, region and eligibility. EnergyPlus.co.uk is a comparison service, not the regulator.
Check your savings potential with whole-of-market comparison
Standing charges are the daily costs you pay to stay connected to the gas and electricity networks, even if you use little or no energy. If Ofgem introduces a standing charge cap in 2026, suppliers may rebalance prices between the standing charge and the unit rate (pence per kWh). That means the right tariff could matter even more.
Use the form to compare home energy tariffs across the market and see options that could suit your usage, payment method and preferences. If you’re not sure whether you’re a low, medium or high user, don’t worry—start with your postcode and we’ll guide you through the next steps.
Tip: If your household uses relatively little energy (for example, a small flat or someone frequently away from home), a cap that reduces standing charges could help—provided unit rates don’t rise enough to offset it. Comparing whole-of-market options is the fastest way to sanity-check this.
Mobile-friendly layout: The form stacks below the content on smaller screens for easy completion.
What is Ofgem’s standing charge cap proposal for 2026?
Standing charges are the fixed daily amount on most domestic energy tariffs. They help cover costs such as network maintenance, metering and some policy costs. Over recent years, many households have seen standing charges rise, leading to concerns that people who use less energy—often including vulnerable households—pay a disproportionate share.
A standing charge cap (as discussed in public debate and consultation-style proposals) would aim to limit how high the daily standing charge can be. The key detail is that if suppliers are prevented from recovering costs via the standing charge, they may recover them elsewhere—most commonly by increasing the unit rate (the price per kWh). The overall impact depends on your usage.
Standing charge
A daily fixed cost (p/day). You pay it even if your energy use is very low.
Unit rate
The cost of each unit of energy (p/kWh). This matters most for higher-usage homes.
What a cap could do
Reduce fixed costs, potentially shifting some costs into the unit rate. Winners and losers depend on consumption.
Important: A standing charge cap is not the same as the Ofgem price cap. The price cap sets limits on default tariff pricing; a standing charge cap would specifically target the fixed daily element.
Who saves most if standing charges are capped in 2026?
If standing charges fall and unit rates rise to compensate, the households most likely to benefit are typically those with lower overall consumption. That’s because a bigger share of their bill is currently made up of fixed daily charges.
1) Low-usage households
Small properties, single occupants, or people often away from home can see the standing charge dominate. A lower standing charge may reduce bills meaningfully if unit rates don’t rise too sharply.
- Studio/1-bed flats with efficient heating
- People who work away or travel often
- Households deliberately reducing usage
2) All-electric homes with low kWh
If you have no gas supply, you may only pay one standing charge (electricity). If electricity standing charges reduce, these households may benefit—especially if total electricity use is modest.
3) Households with solar exporting (low import)
Solar panels can reduce imported kWh, but standing charges still apply. A cap could improve the economics for households whose imports are already low for parts of the year.
4) People on tight budgets focused on predictability
A lower fixed daily cost can make bills feel fairer and easier to manage—though it’s still vital to compare the unit rate, because a higher unit rate can erode savings.
Practical rule of thumb: The less energy you use, the more likely you are to benefit from a reduction in fixed charges—as long as your unit rate doesn’t increase enough to cancel it out. The break-even point differs by region and tariff.
Who might not save (or could pay more)?
If standing charges are capped and costs shift into unit rates, some higher-usage homes could see bills rise. The outcome depends on how suppliers restructure tariffs, regional network costs, and whether you’re on a standard variable tariff (SVT), fixed rate or tracker.
High-usage families
If your home uses a lot of kWh, a higher unit rate can outweigh savings from a lower standing charge.
Homes with electric heating
Electric heating often means higher electricity consumption. If unit rates rise, overall costs may increase unless you’re on a strong tariff (or have efficient heat tech).
Poorly matched tariffs
Some deals can look good on the standing charge but have a high unit rate. Comparison helps avoid paying more overall.
Watch-outs that matter in 2026
- Regional differences: Standing charges and unit rates vary by region due to network costs.
- Payment method: Direct Debit vs prepayment can affect pricing structures.
- Tariff type: Fixed, tracker and SVT respond differently to market shifts and regulatory changes.
How standing charge changes affect bills (simple examples)
The impact comes down to the trade-off between a lower daily charge and a potentially higher unit rate. Below are simplified examples to help you think about it. They are illustrative only and not a forecast.
Actionable next step: If you can find your annual kWh for electricity and gas from a bill or online account, you can compare tariffs much more accurately. If not, you can still start with your postcode and estimate.
How to prepare now (and avoid overpaying in 2026)
Whether or not a standing charge cap arrives in 2026, the habits below make switching easier and reduce the chance you end up on a tariff that doesn’t fit your household.
- Find your usage (kWh) for the last 12 months. It’s usually shown on bills or online statements. Usage is the main factor in whether you’d benefit from lower standing charges.
- Separate the tariff into two parts: check the standing charge (p/day) and unit rate (p/kWh). Don’t choose on standing charge alone.
- Check your region. Energy pricing varies by distribution area. Your postcode helps identify the right regional rates.
- Compare whole-of-market options. Consider fixes (budget certainty), trackers (market-linked), and SVT alternatives.
- Review exit fees and contract end dates. If you’re on a fixed deal, switching early can sometimes cost more than it saves.
Common mistakes when people chase lower standing charges
- Ignoring the unit rate: a cheap standing charge can hide expensive kWh pricing.
- Using old usage estimates: your situation may have changed (working from home, new baby, heat pump, EV, etc.).
- Not checking tariff rules: some deals have conditions (payment method, smart meter requirement, time-of-use pricing).
Regional considerations across Great Britain
Standing charges and unit rates vary by region because network costs are different across distribution areas. This is one reason two households using the same energy can pay different amounts.
Why your postcode matters
Your postcode maps to a regional electricity distribution network and a gas distribution zone. If a standing charge cap is introduced, suppliers may still price regionally within the new rules.
Scotland & Wales
Pricing structures can differ across nations and regions. The best approach is always to compare tariffs using your actual postcode and estimated or known usage.
Note: This page focuses on UK home energy. Availability of tariffs varies by supplier and region.
FAQs: standing charge cap 2026
Will everyone save if standing charges are capped?
Not necessarily. If standing charges reduce but unit rates increase, lower-usage households tend to benefit most, while higher-usage homes could see smaller savings or higher costs. Comparing based on your kWh is the safest way to judge.
Is this the same as the Ofgem price cap?
No. The price cap affects typical costs on default tariffs, while a standing charge cap would specifically limit the fixed daily charge. The two can interact, but they are different measures.
Could suppliers increase unit rates to compensate?
They may, depending on how rules are set and what costs are allowed in standing charges. That’s why it’s essential to check the full tariff: standing charge and unit rate.
How do I know if I’m a low or high user?
Look for your annual consumption in kWh on your bill or online account. If you don’t have it, start a comparison using your postcode and estimate based on household size and heating type.
Does switching energy supplier affect my standing charge?
Yes. Standing charges vary by supplier, tariff, payment method and region. Switching (or changing tariff) can reduce costs—especially if your current deal has a high standing charge.
Is EnergyPlus.co.uk a supplier?
No. EnergyPlus.co.uk is a comparison service. We help you compare home energy tariffs across the market so you can make an informed choice.
Why households use EnergyPlus.co.uk
Whole-of-market approach
Compare a broad range of home energy tariffs in one place, so you’re not relying on a single supplier’s pricing.
Built for real-world bills
Standing charges, unit rates, regions and tariff types all matter. We help you compare in a way that reflects how bills are actually calculated.
Switch with confidence
Make a choice based on what suits your household—whether you value lower fixed costs, price certainty, or flexibility.
What customers say
A few examples of what people value when comparing home energy tariffs:
“Clear breakdown of standing charge vs unit rate. Helped me avoid a deal that looked cheap but wasn’t.”
“Quick comparison and I could see different tariff types in one place.”
“The postcode-based results were useful. Prices were different to what I assumed for my area.”
Trust indicator: Always compare the full tariff details before switching, including contract length, exit fees (if any), payment method and any smart meter requirements.
Ready to see whether you’d benefit from lower standing charges?
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