Who could save the most if standing charges are capped?

In general, customers who use less energy tend to feel the impact of standing charges more because a larger share of their total bill is fixed. If standing charges are reduced or capped, low-usage households (for example, people in smaller homes or those who are out of the house much of the day) may see the biggest benefit.

Will a cap reduce everyone’s bill?

Not necessarily. If standing charges are lowered, suppliers and the wider system may recover costs elsewhere (for example, through unit rates). That means some customers could see smaller savings than others, and higher-usage households may see less benefit depending on how any changes are applied.

What’s the difference between a standing charge and a unit rate?

A standing charge is the fixed daily amount you pay to cover supply and network costs. The unit rate is what you pay for each kilowatt-hour (kWh) of gas or electricity you use. Your total bill is based on both: standing charge × days in the billing period, plus unit rate × usage.

How can I tell whether I’d benefit from changes to standing charges?

Check your recent bills for your daily standing charge and your average usage (kWh). If your annual cost is heavily weighted toward standing charges (common for low-usage households), you’re more likely to benefit from a reduction. You can also compare tariffs and estimate annual costs based on your typical consumption.

Can I reduce my standing charge by switching supplier?

Standing charges vary by tariff, region and meter type, so switching can sometimes reduce them. However, it’s important to compare the full cost of a tariff (standing charge plus unit rates) rather than focusing on just one element.

How do I find a cheaper energy deal with Energy Plus?

You can compare options and request a quote directly with Energy Plus. Visit https://www.energyplus.co.uk/ to explore available tariffs and see whether switching could lower your overall annual cost based on your usage.

Ofgem standing charge cap proposal: who saves most?

Q: What is Ofgem’s standing charge cap proposal?

Ofgem’s standing charge cap proposal is a potential change to the way standing charges are set on energy bills. Standing charges are the fixed daily costs you pay for being connected to the network, regardless of how much energy you use. A cap would limit how high these fixed charges can be, with the aim of improving fairness and affordability for households.

See what a standing charge cap could mean for your household energy bills, who benefits most, and how to compare whole-of-market tariffs with EnergyPlus.

Understand what a standing charge is and why it’s changing
Find out which homes are most likely to save under a cap
Compare whole-of-market deals and switch in minutes

Compare energy deals Jump to who saves most

EnergyPlus is a UK home energy comparison service. Estimates are illustrative; your savings depend on your tariff, usage and region.

Compare tariffs now (whole-of-market) — don’t wait for changes

Ofgem’s standing charge cap is a proposal, and details may change. But your current bill is real today. If you’re on a standard variable tariff or your fix is ending, comparing tariffs can help you find a better deal now — and put you in a stronger position if standing charges change later.

Tip: Your standing charge is the daily fee you pay even if you use no energy. Your unit rate is what you pay per kWh used. A cap on standing charges could shift costs into unit rates. That’s why it’s important to compare the full tariff, not just one line on your bill.

What you’ll need

Your postcode (to match your region and network charges)
Whether you have gas, electricity, or both
Rough usage (or your current monthly cost)

Accessibility note: On smaller screens the form displays beneath the content for easier reading and completion.

Why the standing charge cap matters to households

It affects low-usage homes most

If you use less energy (e.g. a small flat or a well-insulated home), standing charges can make up a bigger share of your total bill.

It changes how tariffs compare

If standing charges fall, suppliers may recover costs through higher unit rates. The “best” tariff can change depending on your kWh usage.

Regional differences still matter

Standing charges and unit rates vary by region (network costs differ). Your postcode is essential for accurate comparisons.

What is a standing charge (and why do we pay it)?

A standing charge is a fixed daily amount you pay to be connected to the gas and/or electricity network. You pay it even if you use no energy that day. It helps cover costs such as maintaining the network, metering, and other industry charges.

Your energy price is typically made of two parts:

Price component	What it means for your bill	Who it impacts most
Standing charge (p/day)	A fixed daily cost for supply and connection.	Low usage homes; households trying to reduce consumption.
Unit rate (p/kWh)	Cost per unit of energy you use.	Higher usage homes; electric heating; larger families.

If a policy reduces standing charges, suppliers and networks may need to recover costs elsewhere. That’s why the key question is not just “will standing charges go down?” but “how will my total annual cost change for my usage?”

What is Ofgem’s standing charge cap proposal?

Ofgem (the UK energy regulator) has consulted on ways to change how standing charges work, including a cap on standing charges. The aim is to address concerns that fixed daily fees have increased and can feel unfair for households who use less energy.

While proposals can vary in design, a cap generally means limiting the maximum daily standing charge suppliers can apply on default tariffs. Any reduction in standing charges may be balanced by changes elsewhere (often via unit rates), so outcomes differ by household.

What to watch for as the rules evolve

How the cap is set: A single UK-wide cap vs regional caps can change who benefits.
How costs are recovered: Lower standing charges often mean higher unit rates, affecting higher usage homes.
Interaction with the Ofgem price cap: Default tariff limits can move each quarter, which affects headline rates.
Payment method impacts: Direct Debit vs prepayment can have different price cap levels and charges.

Want the practical takeaway? Use the who saves most section below, then compare tariffs based on your household’s actual usage.

Who saves most if standing charges are capped?

In general, a standing charge cap is more likely to benefit households where the standing charge makes up a large share of the total bill. That tends to be low-usage households. However, if lower standing charges are offset by higher unit rates, the result can be mixed. The simplest way to think about it is: the fewer kWh you use, the more a standing charge reduction matters.

Likely to save most

Low electricity and/or gas usage (e.g. single occupants, small flats, energy-efficient homes)
People who are often away (second homes or frequent travel), where daily fixed costs feel disproportionate
Households actively reducing consumption (e.g. solar panels + careful usage), where standing charges limit the benefit of using less

May save less (or could pay more)

Higher usage households (larger families, bigger properties, longer heating hours)
Electric heating / heat pump homes where electricity consumption is high and unit rate changes matter more
Anyone on a competitive fixed deal already (a cap affects default tariff limits, not necessarily your current fix)

Key point: Standing charges are charged per fuel. If you have both gas and electricity, changes can apply twice. The overall impact depends on both fuels, your region and how your supplier restructures prices.

Illustrative savings examples (why usage is the deciding factor)

The examples below are simplified to show the direction of travel. They assume a household has a tariff where the standing charge falls, and the unit rate rises to recover some of the cost. Your actual prices depend on supplier, region, payment method and the tariff you choose.

Household type	Usage profile	If standing charge drops…	If unit rate rises…	Likely outcome
Low user	Small home, careful heating	A meaningful cut to fixed costs	Smaller impact (fewer kWh)	More likely to save
Typical user	Average consumption	Some saving on fixed costs	Some additional cost on usage	Could be neutral
High user	Large home, long heating hours	Fixed-cost saving is smaller relative to bill	Bigger impact (many kWh)	Could pay more

To estimate your position, focus on your annual kWh (for gas and electricity). If you don’t have it, your latest bill or online account usually shows it. Then compare tariffs using your postcode to see the total annual cost.

Common mistakes when judging standing charges

Comparing only the standing charge

A lower daily fee can be outweighed by a higher unit rate. Always compare annual cost for your usage.

Ignoring region and meter type

Prices vary by postcode and can differ for prepayment meters. Make sure you compare using accurate details.

Forgetting dual-fuel effects

If you pay standing charges for both gas and electricity, changes apply to both lines of your bill.

FAQs: Ofgem standing charge cap and your home energy bill

Will my bill definitely go down if standing charges are capped?

Not necessarily. Lower standing charges can be offset by higher unit rates. Low-usage households are more likely to benefit, while higher-usage households could see little change or even an increase.

Does the proposal affect fixed tariffs?

A cap typically applies to default tariff limits (linked to the Ofgem price cap) and how suppliers structure default offerings. If you’re on a fixed tariff, your rates are set by your contract until it ends, unless your supplier changes terms in line with the contract.

Why are standing charges different across the UK?

Network costs vary by region, and those costs feed into tariff components. This is why comparing using your postcode is essential for accurate pricing.

Is it worth switching now or waiting?

If you can reduce your costs today with a better tariff, waiting may mean paying more in the meantime. Use EnergyPlus to compare whole-of-market options based on your current usage and revisit when any policy changes are confirmed.

How do I know if I’m a low-usage or high-usage household?

Check your annual kWh on your latest bill or online account for gas and electricity. If you don’t have it, you can use your monthly spend as a rough guide — but kWh is better for comparing tariffs accurately.

Prefer to go straight to prices? Compare energy tariffs here.

Why households use EnergyPlus

Whole-of-market comparisons

Compare a broad range of UK home energy tariffs, focusing on the total cost for your household and region.

Clear, practical guidance

We explain what changes like a standing charge cap could mean, without the jargon — so you can make a confident decision.

Help from start to switch

If you want support, we’ll help you understand your options and what happens after you choose a tariff.

Good to know: Switching supplier doesn’t change your gas pipes or electricity wires — it changes who bills you and what rates you pay.

What people say

“The comparison was straightforward and the explanation of standing charges helped me understand what I was actually paying for.”

Homeowner, West Midlands

“I thought the cheapest deal was the one with the lowest standing charge — turns out the unit rate mattered more for us. EnergyPlus made it clear.”

Tenant, Greater London

“We switched quickly and could see the full annual cost, not just headline rates. Much easier than trying to compare tariffs manually.”

Family household, Yorkshire

Testimonials reflect individual experiences and do not guarantee savings. Always compare based on your own usage and region.

Ready to see what you could pay?

Whether a standing charge cap arrives soon or later, the best move is to compare tariffs using your real usage and postcode. Start your EnergyPlus comparison and see whole-of-market options for your home.

Compare now Read FAQs

No obligation. UK households only. Switching rules and prices can change.

Quick checklist

Have your postcode ready
Check your annual kWh if possible
Compare total annual cost, not just standing charge

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Updated on 24 Feb 2026