Ofgem standing charge cap proposal: what it could mean for UK bill savings
Understand the proposed cap on energy standing charges, how it may affect your electricity and gas costs, and what you can do now to reduce bills by comparing whole-of-market tariffs for your home.
- Clear breakdown of standing charges vs unit rates (in plain English)
- Potential winners/losers and what “cap” could realistically change
- Compare whole-of-market deals in minutes with EnergyPlus
EnergyPlus is a home energy comparison service (whole-of-market). Estimates vary by region, meter type, and usage. Always check tariff details before switching.
If standing charges change, your best move is still to compare tariffs
A standing charge cap is a proposal, not a guaranteed immediate price cut. Even if a cap is introduced, suppliers can still price differently through unit rates (the cost per kWh). That’s why the most reliable way to lower your home energy costs is to compare the full tariff: standing charge and unit rate, plus exit fees and smart meter requirements.
EnergyPlus compares whole-of-market UK home energy tariffs, helping you see options that may better suit your usage pattern—whether you use a little energy (where standing charges bite harder) or a lot (where unit rates matter most).
Tip: If you’re on a standard variable tariff (SVT), checking fixed deals can be worthwhile—especially when suppliers price competitively to win new customers. Results depend on region and payment method.
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Ofgem’s standing charge cap proposal: what it is (and what it isn’t)
In the UK, your energy bill typically includes:
- Standing charge — a daily fixed amount that covers costs like maintaining networks, metering, and some policy costs.
- Unit rate — what you pay for each kWh of gas or electricity you use.
Ofgem has consulted on options that could limit (cap) standing charges. The aim is to address concerns that standing charges have risen and can feel unfair—especially for low-usage households, people in smaller properties, or those who self-disconnect/top up intermittently.
A cap is not the same as removing standing charges
A cap would set a maximum level (potentially differing by fuel, region, meter type, and payment method). It may still leave a standing charge in place.
Costs can move into the unit rate
If standing charges are reduced, some costs may be recovered through higher unit rates—meaning high-usage households might see less benefit.
Any change takes time
Regulatory changes usually follow consultations, impact assessments, and implementation timelines. Your near-term savings are more likely to come from switching.
Who could see savings if standing charges are capped?
Because bills are made up of fixed and variable costs, the impact of any standing charge cap depends on how much energy you use and how tariffs rebalance. These are typical patterns to consider when thinking about Ofgem standing charge cap proposal UK savings:
Lower-usage households
- Standing charges make up a bigger share of the total bill.
- A cap could reduce bills if unit rates don’t rise by the same amount.
- Common in smaller flats, single occupancy, and efficient homes.
Higher-usage households
- Your bill is dominated by unit rates, so changes to standing charge may be less noticeable.
- If costs shift into unit rates, savings could be minimal—or even negative.
- Common in larger homes, electric heating, or home working.
Practical takeaway: Don’t wait for policy changes to reduce your bills. Comparing the market now can reveal deals with lower overall costs for your exact region and meter setup.
Standing charges vs unit rates: a simple guide
If you’re trying to work out whether a standing charge cap could help you, you first need to see how your bill is built.
| Cost type | What it is | How it affects savings |
|---|---|---|
| Standing charge | A fixed daily fee (electricity and/or gas), charged regardless of usage. | Matters most if you use less energy or are away from home often. |
| Unit rate | Price per kWh you consume. | Matters most if your household uses a lot of energy. |
| Exit fees | A charge for leaving a fixed tariff early (not always present). | Can reduce switching savings if you’re mid-contract. |
| Discounts / extras | Bundled incentives (e.g., smart meter-only tariffs) depending on supplier. | Always check eligibility and ongoing costs, not just headline rates. |
When you compare, look at the estimated annual cost (based on your usage) rather than focusing only on the standing charge figure. A lower standing charge can be offset by a higher unit rate.
How to maximise savings—whether or not a cap happens
If you want savings that you can act on today, use this straightforward approach. It’s designed for UK households and works whether you pay by Direct Debit, prepayment meter, or on receipt of bill.
- Find your current tariff details: standing charge (p/day), unit rate (p/kWh), and any exit fees. This is usually on your bill or in your online account.
- Check your meter type: smart, traditional credit, Economy 7, or prepayment. Tariffs can differ significantly by setup.
- Compare whole-of-market options: prioritise overall annual cost, then look at how much of the cost is fixed vs variable.
- Pick the right structure for your usage: low usage can favour lower standing charges; higher usage can favour lower unit rates.
- Switch with confidence: confirm start dates, payment method, and support options (especially if you’re vulnerable or have medical equipment needs).
Common mistake: comparing only the standing charge
A tariff with a lower standing charge can still cost more overall if the unit rate is higher. Use the estimated annual cost as your main decision point, then sanity-check standing charge and contract terms.
Ready to see options in your area? Use the comparison form above to check deals available for your postcode.
Standing charge cap: what to watch for in 2026
If Ofgem introduces a standing charge cap, suppliers may respond in different ways. When scanning tariffs, keep an eye on these areas so you don’t accidentally swap one cost for another:
Unit rate changes
A lower standing charge could coincide with a higher p/kWh. High-usage homes should check whether annual costs rise.
Tariff eligibility
Some deals may require a smart meter, online-only account management, or specific payment methods.
Regional differences
Standing charges vary by region and network costs. A cap might still allow differences between areas.
FAQs: Ofgem standing charge cap proposal and savings
Will a standing charge cap definitely reduce my bill?
Not necessarily. A cap could reduce the daily fixed cost, but suppliers may recover costs elsewhere (often through unit rates). Your outcome depends on your usage, region, and tariff structure.
Does the Ofgem price cap already include a standing charge cap?
The Ofgem price cap limits the maximum charges suppliers can set on default tariffs (based on a typical usage profile), including standing charges and unit rates within the calculation. The “standing charge cap proposal” is about placing a more direct limit on the standing charge element.
Is it better to choose the lowest standing charge tariff?
Only if it reduces your overall annual cost. For many households, the unit rate has a bigger impact than the standing charge. Always compare the total estimated cost for your usage.
Can I switch energy suppliers if I’m on a prepayment meter?
Often yes, but available tariffs can be more limited and may differ in pricing. Comparing whole-of-market options can help you see what’s available for your exact meter type and postcode.
What details do I need to compare accurately?
Your postcode is the best start. For more accuracy, add your current unit rate and standing charge, your annual usage (kWh), and whether you have Economy 7 or a smart meter.
Does EnergyPlus cover the whole UK?
EnergyPlus is UK-focused and compares available home energy tariffs by postcode and region. Availability depends on supplier coverage and meter type.
Why households use EnergyPlus to compare (whole-of-market)
Whole-of-market comparison
We help you compare home energy tariffs across the market so you can focus on the deals available for your postcode and meter type.
Built around real bill maths
We emphasise total cost—standing charge + unit rate—so you avoid misleading comparisons when pricing structures change.
Support for different setups
Whether you’re on a credit meter, smart meter, Economy 7, or prepayment, comparing options can still reveal better fits.
What people say
“The comparison was straightforward and helped me understand the difference between standing charges and unit rates before I switched.”
— UK homeowner, online comparison submission
Trust indicators
- UK-focused home energy comparisons
- Clear explanation of tariff components
- Postcode-based results for regional pricing differences
Don’t wait for policy changes—see what you could save today
Whether Ofgem caps standing charges or not, the fastest route to potential savings is comparing the latest whole-of-market home energy tariffs for your postcode.
By submitting the form you agree to be contacted about your comparison. You can unsubscribe at any time.
Quick checklist before you switch
- Confirm your meter type (smart, Economy 7, prepay)
- Check for exit fees on your current tariff
- Compare annual cost, then review standing charge + unit rates
- Keep a photo of your meter reading on switch day
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