What is Ofgem's standing charge cap proposal?

Ofgem has proposed a cap on the standing charge (the fixed daily amount you pay for gas and electricity). If introduced, it could reduce the fixed part of your bill, with the overall impact depending on your tariff, payment method and how much energy you use. Use our guide and savings calculator to estimate what a capped standing charge could mean for your household and compare it with switching to a better deal now.

What is a standing charge and why do I pay it?

A standing charge is a fixed daily fee on your energy bill that covers costs such as keeping your home connected to the energy network, maintaining infrastructure and certain policy and industry costs. You pay it regardless of how much energy you use, in addition to the unit rate for each kWh you consume.

How much could I save if standing charges are capped?

Your potential saving depends on the difference between your current standing charges and any future capped level, and whether unit rates change at the same time. If your standing charges are currently high, you may see a bigger reduction in the fixed part of your bill. For a personalised estimate, use the UK savings calculator on this page and then compare your result with today's available tariffs to see the quickest route to lower bills.

Will a standing charge cap reduce my total bill?

Not always. A cap could lower the fixed daily charge, but total bills also depend on unit rates and your usage. In some scenarios, a lower standing charge may be paired with higher unit rates, which can affect high-usage households differently to low-usage households. It's best to look at the total annual cost for your usage profile.

Who benefits most from lower standing charges?

Lower standing charges tend to help households with lower energy consumption because more of their bill is made up of the fixed daily charge. Households that use more energy are more influenced by unit rates, so they may see smaller net savings depending on how prices are rebalanced.

Is the standing charge cap in place now?

No. It is a proposal/consultation concept and may change before any decision is made. If implemented, timings and exact pricing rules would be set out by Ofgem. If you're looking to cut costs sooner, comparing tariffs and switching can deliver savings immediately if a cheaper option is available.

Should I wait for the cap or switch energy tariff now?

If you're currently on an expensive tariff, waiting may mean paying more in the meantime. A better approach is to compare the total cost of available tariffs now (unit rate + standing charge) against your current plan. If you find a cheaper tariff, switching could reduce your bills straight away. You can also revisit the calculator later to see how any future cap might change your savings.

How do I calculate my standing charge cost per year?

Multiply your daily standing charge by 365 to estimate the annual cost. For example, a 60p/day standing charge is about £219 per year (0.60 × 365). Do this separately for electricity and gas, then add them together for a combined annual standing charge estimate.

Where can I check my current standing charge and unit rates?

You can find your standing charge and unit rates on your latest energy bill, in your online account, or on your tariff information label/contract. Make sure you're looking at the correct payment method and meter type (for example, direct debit vs. pay on receipt, or standard vs. smart meter).

How can Energy Plus help me save on energy bills?

Energy Plus helps you understand changes like the Ofgem standing charge cap proposal and estimate your costs using a savings calculator. If you're ready to act, compare tariff options and switch to a plan that better fits your usage, so you can start saving sooner rather than waiting for regulatory changes.

Ofgem standing charge cap proposal: UK savings calculator

Estimate what a cap on energy standing charges could mean for your home bills — then compare whole-of-market tariffs with EnergyPlus to see if you can save now.

Quick calculator for electricity and/or gas standing charge impact
Whole-of-market comparison for home energy (not business)
Switch help if you’re on Standard Variable or a fixed deal ending soon

Use the savings calculator Compare tariffs & switch

Figures are illustrative and depend on Ofgem decisions, your region and your meter type. You can still compare and switch today.

Standing charge cap savings calculator (UK homes)

Standing charges are the daily fees you pay to stay connected to the gas and/or electricity network — even if you use no energy that day. Ofgem has discussed proposals around standing charges (including caps and rebalancing). If a cap reduced the daily standing charge in your area, your yearly cost could fall.

Use this page to (1) estimate the potential impact of a lower standing charge and (2) compare whole-of-market tariffs for your postcode. Many households can save before any proposal takes effect by moving off an expensive Standard Variable Tariff (SVT) or by timing a switch ahead of a fix ending.

Tip: If you don’t know your current standing charges, check a recent bill or your online account. If you have a smart meter, your in-home display may also show your daily standing charge.

What you’ll need

Your postcode (so we can show relevant home tariffs)
Whether you have gas, electricity, or both
Your current daily standing charge(s), if you know them
An estimate of what the capped standing charge might be (if you’re modelling a scenario)

Get your personalised comparison

Complete the form to see home energy options. You can use it whether you’re modelling standing charge changes or simply want the best deal available now.

Quick scenario maths: If a standing charge fell by 10p/day, that’s about £36.50 a year (10p × 365). For gas + electricity, combine both daily reductions.

Prefer to calculate it yourself?

Use this formula: Estimated annual saving (£) = (Current standing charge - Capped standing charge) × 365. If you have both fuels, calculate gas and electricity separately and add them together.

What is the Ofgem standing charge cap proposal?

Ofgem regulates parts of the energy market and sets the Energy Price Cap for typical households on standard variable tariffs. Standing charges (a daily fee) are part of how bills are structured. When people talk about an “Ofgem standing charge cap”, they typically mean proposals that could limit (cap) the maximum daily standing charge, or rebalance costs between the standing charge and the unit rate.

Any change would be shaped by consultation outcomes, network cost allocation, and the need to keep energy suppliers financially stable while protecting consumers. If a cap reduced standing charges, some costs might be recovered elsewhere (for example, via unit rates). That’s why it’s useful to view standing charge changes alongside a whole-of-market comparison.

Standing charge

A daily cost to cover network connection and system costs. You pay it even if you use no energy that day.

Unit rate

The price per kWh you consume. If standing charges go down, unit rates could change too depending on the approach.

Your region matters

Standing charges vary by distribution region and meter type, so the impact of any cap can differ across the UK.

Important: This page is for home energy only. If you’re looking for business energy, the tariff structures and eligibility criteria can differ.

Compare whole-of-market energy deals (and save now)

Even if Ofgem later changes how standing charges work, you may be able to reduce your costs sooner by choosing a tariff that suits your household. EnergyPlus compares across the market to help you find competitive options based on your postcode and preferences.

If you use less energy

Standing charges can feel disproportionately high. Comparing tariffs helps you check whether a lower standing charge (or a better balance between standing charge and unit rate) is available in your area.

If you use more energy

Unit rates become more significant. Comparing whole-of-market options can highlight where a slightly higher standing charge is outweighed by lower kWh prices for your typical usage.

Next step: Use the form in the calculator section to view tariffs for your postcode and get support switching.

Why use EnergyPlus for standing charge and tariff comparisons?

Whole-of-market view

See a broad range of home energy deals, including fixes and variable options, so you can judge costs beyond a single supplier’s offers.

Built around your postcode

Standing charges and price cap levels vary regionally. Comparing with your postcode helps keep results relevant.

Switch support

We help you move from your current supplier to a new tariff with minimal hassle, and we’ll highlight key terms to check.

Clear cost breakdown

Understand how standing charges and unit rates combine into an estimated annual cost for your household.

Useful for low usage homes

If you live alone, are often away, or have high efficiency, your tariff choice can make a noticeable difference — beyond headline rates.

No guesswork on timing

If your fix is ending, you can compare options and plan ahead. Switching at the right time can avoid rolling onto a higher SVT.

How to estimate standing charge cap savings

Because the final shape of any Ofgem proposal may vary, a practical way to model impact is to test a few “what-if” scenarios using your current standing charge(s). The key is to keep units consistent: standing charges are typically shown in pence per day (p/day).

Find your current standing charge for electricity and (if applicable) gas — on your bill or online account.
Choose a capped standing charge scenario (for example, 40p/day electricity, 30p/day gas) based on what you’ve read in the news or want to test.
Calculate the daily difference: current - capped.
Convert to annual impact by multiplying by 365 and converting pence to pounds.
Sense-check against unit rates: if standing charges fall, unit rates could change — so compare full tariffs, not just one component.

Example scenarios (illustrative)

Fuel	Current standing charge	Capped scenario	Daily reduction	Estimated annual saving
Electricity	60p/day	50p/day	10p/day	~£36.50/year
Gas	35p/day	25p/day	10p/day	~£36.50/year
Total (dual fuel)	—	—	20p/day	~£73.00/year

Remember: A lower standing charge does not automatically mean a lower overall bill. Always compare the combined effect of standing charge + unit rate against your expected consumption.

Regional differences: why your postcode changes the numbers

Standing charges vary by electricity distribution region and by gas network. Two households with the same supplier can have different standing charges simply because they live in different areas. That’s why a postcode-led comparison is essential when estimating any standing charge cap impact.

What affects standing charges?

Your electricity distribution region
Your gas distribution network area
Meter type (credit vs prepayment) and payment method
Tariff structure and supplier pricing approach

Common household situations

All-electric homes: electricity standing charge has a larger impact.
Gas for heating: gas standing charge matters even in summer when usage drops.
Low occupancy: standing charges can be a bigger share of total cost.
High usage: unit rates often drive total cost more than standing charges.

To see what’s available where you live, go to the comparison form and enter your postcode.

Common mistakes when calculating standing charge savings

Forgetting gas vs electricity

Dual-fuel homes have two standing charges. If you’re modelling a cap, calculate each fuel separately and add them.

Mixing pence and pounds

Standing charges are usually in pence/day. Divide by 100 to convert pence to pounds for yearly totals.

Ignoring unit rate changes

Policy changes can rebalance costs. The best “deal” is the lowest total cost for your usage, not the lowest standing charge alone.

FAQs: Ofgem standing charge cap proposal

Would a standing charge cap definitely reduce my bill?

Not necessarily. If standing charges are reduced, some costs could be recovered through unit rates or other changes. Your net bill impact depends on your consumption, your region, and your tariff.

Do standing charges vary by supplier?

Yes. Many tariffs follow the price cap structure for SVT customers, but fixed tariffs can differ. Charges also vary by payment method and meter type, and by region.

Is this calculator official?

No. This page provides an illustrative way to model potential savings using your own inputs. For official outcomes, always refer to Ofgem publications and your supplier’s updated tariff information.

I’m on a fixed tariff — should I still compare?

Often yes. If your fix is ending soon, comparing in advance can help you avoid rolling onto a higher SVT. If your fix has exit fees, consider them when deciding whether to switch early.

Does my meter type affect standing charge?

It can. Some tariffs differ for credit and prepayment meters. If you’re unsure, your bill will show the tariff and meter details.

What if I can’t find my current standing charge?

You can still compare tariffs using your postcode. For the savings estimate, check the latest bill, your online account, or contact your supplier to confirm the current daily standing charge for your tariff.

What households say about switching support

“Clear explanation of standing charges vs unit rates. I finally understood what I was paying for and switched to a better tariff.”

— Homeowner, West Midlands

“The postcode comparison was quick and I didn’t have to chase suppliers. Helpful when our fix ended.”

— Tenant, Greater London

“We use very little energy so standing charges were a big chunk of our bill. Comparing properly made a real difference.”

— Flat owner, Scotland

Trust indicators to look for when switching

Clear tariff terms (standing charge, unit rates, exit fees, and fix length)
Support for meter and payment method compatibility
Transparent estimated annual cost based on your usage assumptions

Check your standing charge impact — and compare deals today

If Ofgem changes standing charges, your costs could shift. But you don’t need to wait to take control of your home energy bills. Use our calculator guidance and compare whole-of-market tariffs based on your postcode.

Personalised home energy comparison
Support choosing a tariff that matches your usage
Simple form — we’ll do the heavy lifting

Start comparison

Already have a bill handy? Great — you’ll be able to model standing charge scenarios more precisely.

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Updated on 24 Feb 2026