Ofgem standing charge cap proposal: who saves most in the UK?
See what a potential standing charge cap could mean for your bills — and compare whole-of-market deals with EnergyPlus to find the best tariff for your home.
- Understand the Ofgem standing charge cap proposal in plain English
- Find out which households could benefit most (and who may not)
- Compare electricity & gas tariffs across the market in minutes
- Switch online — no sales calls, just clear options
EnergyPlus is a whole-of-market comparison service for households. Savings depend on your usage, region and tariff availability. This page explains a proposal — it is not a price guarantee.
Compare home energy deals while the rules may change
Standing charges and unit rates can move in different directions — especially when proposals like a standing charge cap are being discussed. The quickest way to protect your budget is to compare what’s available for your meter type, your region and your usage.
EnergyPlus compares a whole-of-market range of tariffs (including fixed and variable where available). If switching is right for you, you can submit your details and we’ll guide you through the next steps.
Tip: If you’re worried about standing charges, compare tariffs using estimated annual cost (standing charge + unit rate), not just the headline p/kWh.
What you’ll need (takes 2 minutes)
- Your postcode (to match your network region)
- Whether you have gas, electricity, or both
- Your typical usage or monthly spend (an estimate is fine)
- Your current supplier/tariff (optional, helps accuracy)
What is Ofgem’s standing charge cap proposal?
Ofgem has discussed options that would limit (cap) the standing charge — the daily fixed cost you pay for having an energy supply, regardless of how much you use. The intention is to help households who feel they pay too much before using any energy at all.
A key point: if standing charges were reduced or capped, suppliers may recover those costs elsewhere (for example, through higher unit rates) or through changes to how charges are structured. That’s why it’s important to look at the total annual cost for your home.
What might change
- A maximum daily standing charge level (varies by fuel/region/meter type)
- Potential rebalancing: lower standing charges, higher unit rates
- Different impacts across electricity vs gas (electricity standing charges are typically higher)
What may not change
- Your supplier still bills you for energy used (p/kWh)
- Prices can still vary by region and payment method
- Fixed tariffs you’re already on may remain until the end date
Important: This page explains the likely direction and consumer impacts of a proposed cap. Implementation details (levels, timings and eligibility) can change during consultation and decision-making.
Who saves most if standing charges are capped?
In general, a standing charge cap helps households where the fixed daily cost makes up a larger share of the bill. But outcomes depend on whether unit rates rise to compensate. Below is a practical way to think about it.
Low users (often save most)
If you use relatively little energy, your standing charge can feel disproportionate. A cap can reduce the “minimum” you pay each month.
- Small flats / well-insulated homes
- Single occupants
- Second homes (occupied occasionally)
Prepay & vulnerable households (could benefit)
Some customers feel standing charges worsen debt or make it harder to stay on supply. A cap could improve predictability.
- Households topping up weekly
- Those trying to manage arrears
- People who self-disconnect to control costs
High users (may save less or pay more)
If unit rates increase to balance lower standing charges, high users can see smaller savings — or even higher bills overall.
- Larger families
- Electric heating / EV charging at home
- Homes with poorer insulation
A simple way to judge whether you’re likely to benefit
Step 1
Check your bill for your daily standing charge (electricity and gas are separate).
Step 2
Estimate how much you use each year (kWh). If you don’t know, use your monthly spend as a guide.
Step 3
Compare tariffs by total annual cost. If your usage is low, standing charge changes matter more.
Quick check: If your standing charges add up to a large part of your annual bill, you’re more likely to gain from a cap. If your unit-rate spend dominates, unit-rate changes matter more.
What is the standing charge (and why does it exist)?
The standing charge is a fixed daily amount you pay to cover parts of the cost of keeping your home connected to the energy network and maintaining billing and metering services. It’s charged whether you use lots of energy or none.
What it typically contributes to
- Network costs (maintaining wires/pipes and local infrastructure)
- Metering and industry charges
- Supplier operating costs (billing, customer service)
- Policy and regulatory costs (vary over time)
Why it varies across the UK
- Your region’s electricity distribution area
- Payment method and meter type (e.g. prepay)
- Whether you’re on a fixed tariff or a variable tariff
- Supplier pricing strategy
Examples: how a cap could affect different households
These examples are illustrative only. Actual outcomes depend on the cap level, tariff structure, your region and how suppliers adjust unit rates. Use them to understand who tends to benefit, then run a comparison for your home.
How to read the table: Lower standing charges help everyone, but if unit rates rise, the more energy you use, the more you feel that increase.
*Illustrative outcomes only. Any cap could be accompanied by changes to unit rates and/or tariff structures.
How to take action now (even before anything changes)
Whether or not a standing charge cap is introduced, you can still improve value by focusing on the parts of your bill you can control today: your tariff, your payment method, and your consumption patterns.
1) Compare total cost
Look at annual cost estimates (standing charge + unit rate), not just one headline number.
2) Check meter type
Prepay, smart and standard credit can price differently. Your meter influences what’s available.
4) Reduce the fixed share
If you’re a low user, a lower-standing-charge tariff (where available) can matter most.
FAQs: Ofgem standing charge cap and your energy bill
Would a standing charge cap automatically lower my bill?
Not necessarily. If standing charges are reduced, suppliers may increase unit rates or restructure tariffs. The net effect depends on how much energy you use and what tariff you’re on.
Do electricity and gas have separate standing charges?
Yes. You typically pay a daily standing charge for electricity and (if you have it) a separate daily standing charge for gas.
Why are standing charges different across the UK?
Network costs vary by region, and pricing can differ by payment method and meter type. Your postcode determines your electricity distribution area.
If I use almost no energy, can my bill still be high?
Yes — standing charges mean there is still a daily cost for maintaining supply. This is why low-use households are often most sensitive to standing charge changes.
Should I wait to switch until a cap is confirmed?
If you’re on an expensive tariff now, waiting can cost more than switching. Comparing current deals lets you decide based on today’s prices, and you can choose a tariff length that suits your risk tolerance.
What’s the best way to compare if I don’t know my kWh usage?
Use your monthly spend and household size as a guide, then refine later. EnergyPlus can still show meaningful comparisons using typical usage bands.
If your situation is complex (electric-only home, storage heaters, EV, heat pump, or medical equipment), compare based on annual cost and consider how usage patterns affect unit-rate changes.
Trust signals: how EnergyPlus helps you compare confidently
Whole-of-market comparison
We focus on showing options across the market where available, so you can judge value based on total cost, not assumptions.
UK home-focused results
Quotes reflect your postcode region and meter type, helping you compare like-for-like on electricity and gas.
No jargon, clear next steps
We explain standing charges, unit rates, and tariff terms so you can make a confident decision.
What customers say
Feedback from UK households using comparison services like EnergyPlus typically highlights speed, clarity and control. Here are examples of the kind of experience we aim to deliver.
“I didn’t realise how much of my bill was standing charge. Comparing by total yearly cost made it much clearer.”
“Took a couple of minutes. The results were easy to understand and I could see fixed vs variable at a glance.”
“I wanted lower standing charges because my usage is low. The comparison helped me find a better balance.”
Transparency note: Testimonials above are illustrative of common customer goals and outcomes. Your savings depend on your tariff, region, meter type and energy use.
Ready to see if you could pay less?
Don’t wait on proposals to become policy. Compare whole-of-market home energy tariffs now and focus on the number that matters: your estimated annual cost.
EnergyPlus.co.uk helps UK households compare energy tariffs. Availability varies by supplier and region. Always review tariff terms, prices and any fees before switching.
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