Ofgem standing charge cap proposal (UK): how to save now
Ofgem is consulting on options to reduce or cap energy standing charges. While any change is being decided, you can still cut costs by comparing whole-of-market tariffs and tightening your current plan. Use EnergyPlus to check deals from across the market and see if switching could lower your total bill.
- Understand what the proposed standing charge cap could mean for your household
- See practical ways to save regardless of what Ofgem decides
- Compare whole-of-market home energy tariffs in minutes
- Switch with confidence: clear steps, no jargon
EnergyPlus is a whole-of-market comparison service for UK homes. Savings depend on your usage, region and tariff availability. We’ll show options and next steps clearly.
Compare whole-of-market tariffs while Ofgem reviews standing charges
Standing charges are only one part of your total energy cost. Even if a cap is introduced, your unit rate (price per kWh) and how well your tariff matches your usage will still matter. The most reliable way to save is to compare your current deal against the market and switch if the numbers stack up.
Tip: If you use relatively little energy (for example, small flats or low occupancy), standing charges can make up a bigger share of your bill. If you use more energy, unit rates and tariff structure usually dominate.
What you’ll need (takes 2 minutes)
- Your postcode (to show local network charges and available tariffs)
- Fuel type: electricity only, or gas + electricity
- Payment preference (Direct Debit / pay on receipt, where available)
- Optional: recent usage from your bill for more accurate estimates
If you’re unsure about usage, you can still compare using typical household estimates and refine later.
Check savings
Complete the form to see whole-of-market options and whether switching could reduce your total bill (standing charge + unit rate).
What is a standing charge on UK energy bills?
A standing charge is a daily fixed cost you pay to have your home connected to the energy network, regardless of how much energy you use. It typically covers elements like network costs, metering, and certain policy costs. Your total bill is usually:
Total cost ˜ (daily standing charge × days) + (unit rate × kWh used)
Because the standing charge applies every day, it can feel especially unfair if you use little energy (for example, you’re out at work all day, live alone, or have an efficient home). That’s why the standing charge has become a big consumer issue—and why Ofgem has been exploring reform.
Ofgem standing charge cap proposal: what it could mean
Ofgem has discussed and consulted on ways to reduce the impact of standing charges. Proposals can vary, but the core idea is to make bills feel fairer—particularly for low-energy users—by reducing, rebalancing, or capping standing charges. In practice, if the standing charge is lowered, suppliers may recover some costs elsewhere (often through unit rates), so the “best” outcome can depend on your household’s usage pattern.
1) Lower standing charge
Daily fixed costs reduce. Unit rates may rise to keep supplier revenue neutral.
2) Standing charge cap
A maximum daily charge is set. Regional differences and tariff types could still affect totals.
3) Rebalancing costs
Costs shift between standing charge and unit rate. Low users may benefit; high users may not.
The key takeaway: a cap could help some households, but your bill outcome will still depend on tariff prices, your region, and how much energy you use. That’s why it’s worth checking the market now rather than waiting for a policy change.
Important: We can explain the implications and help you compare tariffs, but EnergyPlus can’t confirm the final form or timing of any Ofgem decision. Always check the latest official announcements and your supplier terms.
Who could benefit most from lower standing charges?
If standing charges are reduced or capped, the impact won’t be identical for everyone. Here’s a helpful way to think about it:
If you want the most accurate view, compare using your real consumption (kWh) from your latest bill or online account—then check what happens under different tariff structures.
How to save on energy bills now (even before any cap)
If you’re searching for “Ofgem standing charge cap proposal UK how to save”, you likely want actions you can take today. These steps focus on what actually changes your annual cost.
- Compare total annual cost (not just the standing charge). A tariff with a lower standing charge can still cost more overall if the unit rate is higher.
- Check your payment method. Direct Debit tariffs can be cheaper than pay-on-receipt for some suppliers.
- Verify your meter type. Prepayment, standard credit and smart meters can have different options. If you have (or can get) a smart meter, you may unlock more tariffs.
- Review your tariff end date. If you’re rolling onto a more expensive variable tariff, you might save by switching or fixing.
- Match tariff to lifestyle. If you can shift usage to off-peak times, a time-of-use tariff may reduce costs—if it fits your pattern.
- Reduce wasted kWh. Quick wins include draught-proofing, turning flow temperature down where appropriate, and upgrading bulbs to LED.
Quick check: are standing charges your main issue?
If your annual usage is low, you’ll feel standing charges more. If your usage is high, unit rates and tariff structure often outweigh standing charge differences.
Quick check: do you know your kWh?
Find gas and electricity usage (kWh) on your bill. Using kWh makes comparisons more accurate than relying on £ estimates.
Common mistakes when comparing tariffs during standing charge changes
Focusing on the daily charge only
A lower standing charge can be offset by a higher unit rate. Always compare the full annual estimate.
Using outdated usage figures
If your household changed (working from home, new baby, new heating), update kWh to avoid misleading results.
Ignoring tariff conditions
Exit fees, fix length, and payment method can change the real cost. Check the key facts before switching.
Regional considerations: why standing charges vary across the UK
Standing charges and unit rates can differ by region due to network cost differences and distribution areas. That’s why a “good” tariff in one part of the country may not be the best in another. Using your postcode is essential for an accurate comparison.
If a standing charge cap is introduced, it may still interact with regional cost structures. The practical approach remains the same: compare the total cost for your home.
FAQs: Ofgem standing charge cap and switching
Will a standing charge cap definitely reduce my bills?
Not necessarily. If standing charges fall, some costs may be recovered through unit rates. Low usage households are more likely to benefit, but the outcome depends on the final design and your consumption.
Should I wait for Ofgem to change standing charges before switching?
If you’re on an expensive tariff, waiting could mean overpaying for months. Comparing now lets you see whether there’s a better-fit tariff today. You can always review again later if market conditions change.
Is it better to choose the lowest standing charge available?
Only if the overall tariff is competitive. The best value tariff is the one with the lowest total annual cost for your usage, including unit rates, standing charges and any terms.
Can I reduce standing charges by using less energy?
No—standing charges are fixed daily costs and don’t reduce if you use less energy. Cutting usage lowers the unit-rate portion of your bill, but the standing charge still applies.
Do standing charges differ for gas and electricity?
Yes. Gas and electricity each have their own standing charge and unit rate. Dual fuel customers pay both standing charges.
What if I’m on prepayment?
You can still compare tariffs, but the set of available options may differ. Include your meter type when comparing, and consider whether a smart meter could open up more choices (where appropriate).
Still unsure? Use the comparison form and we’ll show tariffs that match your home details.
Why EnergyPlus (whole-of-market) for UK home energy comparisons
Built for total cost comparisons
We help you focus on what you’ll actually pay: standing charge + unit rates, based on your region and usage assumptions.
Whole-of-market approach
We compare across the market to help you find a tariff that fits your household—without pushing one supplier type.
What homeowners and renters say
“I didn’t realise the cheapest standing charge wasn’t the cheapest bill. EnergyPlus helped me compare properly and switch.”
“The postcode-based comparison was key—prices were different from what I saw on national averages.”
“Simple form, clear results. I could see the total annual cost and the tariff terms in one place.”
Testimonials are illustrative of typical customer experiences and are not a guarantee of savings.
Ready to see if you can beat your current standing charge and unit rate?
Ofgem’s proposals may change the landscape—but your household can take control today. Compare whole-of-market tariffs and get a clear view of your best next step.
- Postcode-based prices
- Clear total cost estimates
- Options for different payment methods
Start your comparison
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