Ofgem standing charge cap proposal: UK update & what to do now
If Ofgem caps standing charges, your bills could be reshaped — but the best move today is still to compare. Use EnergyPlus to check whole-of-market home energy tariffs and find a better fit for your usage.
- Understand what a standing charge cap could mean for gas & electricity bills
- See who may benefit most (and who might not)
- Compare whole-of-market tariffs based on your postcode and usage
- Quick form — we’ll help you switch with minimal hassle
Home energy only. Whole-of-market comparison. Savings depend on your tariff, region, and usage. Always check tariff terms before switching.
Compare home energy tariffs while Ofgem considers standing charge changes
The standing charge cap proposal is still a proposal — meaning your current tariff rules apply today. Rather than waiting, many households can reduce costs by switching to a tariff that better matches their usage, payment method and risk preference (fixed vs variable).
EnergyPlus is a whole-of-market comparison service for UK home energy. Tell us a few details and we’ll help you compare available options and start your switch.
Why act now?
- Standing charges and unit rates vary by region and tariff type.
- A “cap” doesn’t automatically mean “lower overall bill” for every household.
- Switching typically doesn’t interrupt supply — your energy keeps flowing.
Prefer to read first? Jump to Ofgem’s standing charge cap proposal update and then return to this form.
Get whole-of-market results
Complete the form and we’ll use your details to compare suitable home tariffs and contact you with options.
Already paying by Direct Debit?
Many tariffs assume payment by monthly Direct Debit. If you pay on receipt of bill or prepayment, we can still compare — your results may look different depending on what’s available in your area.
Ofgem standing charge cap proposal update (UK)
Ofgem has been exploring reforms to standing charges as part of wider efforts to improve fairness and transparency in home energy billing. A commonly discussed option is a cap on standing charges, which could limit the daily fixed amount you pay for electricity and gas before you use any energy.
This page explains what the proposal could mean for households, the key trade-offs, and what actions are sensible right now while policy decisions are considered.
Important: proposals can change
Any standing charge cap would need to be finalised through Ofgem’s process and then implemented by suppliers. That means timings, exact limits and eligibility details can evolve. Use this update for guidance, and compare tariffs based on current market pricing.
Why standing charges are under scrutiny
- Bill predictability: standing charges apply regardless of usage, which can feel disproportionate for low-usage households.
- Affordability concerns: households trying to reduce consumption still face fixed daily costs.
- Cost recovery: networks and supplier operating costs are often recovered through standing charges — limiting them can shift costs into unit rates.
- Regional variation: electricity standing charges vary by distribution region, which complicates one-size-fits-all solutions.
What a cap could practically mean
If standing charges are capped, suppliers may respond by adjusting unit rates (the price per kWh). For some households, lowering the fixed daily cost could be helpful. For others — especially higher-usage homes — the shift could mean overall bills stay similar or even rise, depending on how costs are rebalanced.
That’s why comparing tariffs based on how you actually use energy remains the most reliable way to decide.
Who might benefit from a standing charge cap?
Low-usage households
If you use relatively little energy (e.g. smaller properties, careful consumption), standing charges can make up a larger share of your bill. A cap could reduce that fixed portion — but only if unit rates don’t rise more than the saving.
Households facing affordability pressure
A lower daily fixed cost could feel more manageable, especially in periods of tight budgeting. However, if unit prices increase, bills can still be challenging during colder months when usage rises.
People who can flex usage
If you can lower consumption through efficiency upgrades or smarter habits, reduced standing charges could help those efforts translate more directly into savings.
Who might not benefit?
If costs move from standing charges into unit rates, higher-usage households (e.g. larger homes, electric heating, big families) could pay more overall. The impact depends on the final policy design and supplier pricing.
What is a standing charge (and why do you pay it)?
A standing charge is a daily fixed fee on your gas and/or electricity bill. You pay it even if you use no energy that day. It covers a range of costs that are not directly linked to how many kWh you use.
Typical costs included
- Network costs (pipes/wires and maintenance)
- Metering and billing costs
- Policy costs and industry charges (varies by tariff and supplier)
- Operating costs for providing supply
Why it varies
- Region: electricity standing charges differ by distribution area.
- Payment method: Direct Debit vs pay-on-receipt can differ.
- Meter type: prepayment vs credit meters can have different structures.
- Tariff design: some tariffs lower standing charges but increase unit rates (or vice versa).
What to do now: practical steps for households
Whether a cap arrives soon or later, the best decision-making comes from your current tariff details and your typical annual usage. Use these steps to stay in control.
- Check your latest bill: note your electricity and gas standing charges (p/day) and unit rates (p/kWh).
- Estimate annual usage: use last year’s kWh figures if possible (separate for gas and electricity).
- Decide your tariff preference: fixed (price certainty) vs variable (moves with the cap and market).
- Compare whole-of-market: standing charge caps may shift pricing — comparison shows what’s genuinely better for your pattern of use.
- Switch with minimal disruption: your supply continues; the change is administrative and your new supplier handles the process.
If you’re on a standard variable tariff
These tariffs typically follow the price cap level (where applicable) and can change. Comparing fixes or alternative tariffs could improve certainty — but always check term length and any exit fees.
If you’re on a fixed tariff
Your standing charge and unit rate are set by your contract. A future standing charge cap may not immediately change your fixed rates. Check if exit fees apply before switching.
Common mistake to avoid
Focusing on standing charge alone. The cheapest overall option depends on standing charge + unit rate across your expected annual kWh. A lower standing charge can be offset by a higher unit price.
Regional considerations: why your postcode matters
Electricity standing charges vary by distribution region across Great Britain. That means two households on similar tariffs can see different standing charges depending on where they live. Any cap would have to account for these differences — which is one reason the details matter.
How EnergyPlus uses your postcode
Your postcode helps identify your local electricity distribution region so we can show tariffs and charges that reflect your area. Complete the comparison form to see what’s available for your home.
FAQs: Ofgem standing charge cap proposal
Will a standing charge cap definitely reduce my bill?
Not necessarily. If standing charges are limited, some costs may move into unit rates. Your total bill depends on your usage, tariff structure, payment method and region.
Is this the same as the energy price cap?
No. The energy price cap (where applicable) limits the overall level of charges for standard variable and default tariffs. A standing charge cap would specifically target the fixed daily part of the bill.
Could unit rates go up if standing charges go down?
Yes, that’s a key trade-off. Suppliers still need to recover certain costs, so reducing standing charges can lead to higher per-kWh prices.
Should I wait before switching?
If you can get a better tariff today, waiting can cost you. The most reliable approach is to compare based on current prices and your annual kWh — then review again if market rules change.
Do prepayment customers have standing charges?
Often yes, though how they’re applied can differ by meter and tariff. If you use prepayment, comparison should reflect what’s available for your setup and region.
What details do I need to compare accurately?
Postcode is essential to reflect regional charges. For best accuracy, also use your annual kWh from recent bills. If you don’t have it to hand, you can still start with your postcode and refine later.
Why households use EnergyPlus
Whole-of-market approach
We compare available home energy options across the market to help you find a tariff that suits your usage and preferences.
Clear, practical guidance
Standing charge reforms can be confusing. We explain the trade-offs in plain UK English and keep your decision focused on total cost.
Support through the switch
From comparison to next steps, we help reduce admin and keep you informed on what happens and when.
What customers say
“The comparison was straightforward and the explanation of standing charges vs unit rates helped me choose the right tariff for how we actually use energy.”
— Homeowner, West Midlands
“I was worried about switching, but there was no interruption to supply and the process was explained clearly.”
— Tenant, Greater London
Don’t wait on policy headlines — compare your home tariff today
A standing charge cap could change how bills are structured, but your savings are driven by the tariff you’re on right now. Compare whole-of-market options with EnergyPlus and get help switching.
No interruption to supply when switching. Terms and availability vary by region and supplier.
Quick checklist before you submit
- Use the postcode for the property you pay energy for
- If you have it, keep a recent bill nearby (optional)
- We’ll compare tariffs based on current market prices
Back to Energy News