Ofgem standing charge consultation 2025: find the cheapest tariffs
Ofgem is consulting on changes to how standing charges work in Great Britain. If your bills feel high even when you use less energy, your tariff choice matters. Compare whole-of-market home energy deals with EnergyPlus and see options that may reduce your overall cost based on your usage and region.
- Compare whole-of-market electricity and gas tariffs for your home
- See how fixed vs variable deals may affect your standing charge + unit rate mix
- Quick form—get matched using your postcode and usage (or best estimate)
Home energy only. Great Britain (England, Scotland, Wales). Standing charges and unit rates vary by region and meter type. We’ll show tariff options and explain trade-offs—no obligation to switch.
Compare tariffs built around standing charge + unit rate
When standing charges rise, the “cheapest tariff” often depends on how much energy your household uses. Some plans trade a lower standing charge for a higher unit rate (or vice-versa). EnergyPlus helps you compare whole-of-market home energy tariffs, with clear totals based on your usage so you can choose what’s likely to cost less over the year—not just what looks cheapest on day one.
Tip: If you don’t know your exact kWh usage, use your latest bill or choose an estimate. We’ll still show the tariff trade-offs, then you can refine later.
What you’ll get after you submit
- Tariff options filtered for your meter type (standard/credit, smart, prepayment where available)
- Estimated annual cost breakdown: standing charge + unit rates
- Guidance on fixed deals vs Standard Variable Tariff (SVT) and exit fees
Important: The Ofgem standing charge consultation is not an immediate price change. Your actual standing charge depends on your region, meter type and supplier. This page explains what’s being considered and how to choose tariffs in the meantime.
Why standing charges matter when you’re comparing “cheapest” tariffs
Low usage? Standing charge can dominate
If you use relatively little gas or electricity (e.g. a flat, single occupant, or a well-insulated home), the fixed daily charge can make up a large share of your annual bill. A tariff with a slightly higher unit rate but a lower standing charge may work out cheaper overall.
High usage? Unit rate often drives costs
For larger households, electric heating, or high gas consumption, the per-kWh unit rate is usually the biggest factor. You may be better off accepting a higher standing charge in exchange for a lower unit rate—especially on electricity.
Regional differences are real
Standing charges vary by electricity distribution region and gas network. “Cheapest in the UK” headlines can be misleading. Comparing with your postcode helps reveal deals that are competitive where you live.
What is a standing charge?
A standing charge is a fixed daily amount you pay to have your home connected to the energy network—whether you use any energy or not. You’ll see it on your bill as pence per day (p/day). Your unit rate is what you pay for each kilowatt hour (kWh) you use.
What the standing charge typically covers
- Maintaining pipes, wires and local distribution networks
- Metering and administration costs (billing, customer service)
- Policy and system costs that are spread across customers
Where people get caught out
- Comparing only unit rates and missing a higher standing charge
- Switching based on a “headline” deal without using their own usage
- Assuming all regions pay the same daily rate
Plain English: Your annual cost ˜ (standing charge × 365) + (unit rate × your kWh). The cheapest tariff is the one that minimises that total for your household.
Ofgem standing charge consultation 2025: what it could mean
Ofgem has been exploring options to make energy bills fairer and easier to understand—especially for households that use less energy but still pay significant fixed costs. In 2025, the standing charge consultation focuses on how these fixed costs are recovered and whether consumers should have alternative pricing structures.
Potential outcomes (examples)
- Lower standing charges with more cost moved into unit rates
- Optional tariffs with a different balance (e.g. “zero standing charge” style products)
- Changes to how certain costs are allocated across customer groups
- More transparency and comparability for consumers
What won’t change overnight
- Standing charges won’t disappear immediately across all tariffs
- Your current tariff terms (including exit fees) still apply
- Cheapest options will still vary by region and meter setup
Action you can take now: compare tariffs by annual cost using your usage. If policy changes shift costs between standing charges and unit rates, the best-value tariff for you may also shift—so reviewing annually (or when your fix ends) is sensible.
How to find the cheapest tariff during the 2025 standing charge debate
If you’re searching for the cheapest energy tariffs while the Ofgem standing charge consultation is in the news, focus on what you can control: choosing a tariff structure that fits your usage pattern and risk preference (fixed vs variable). Below is a practical approach you can follow today.
- Find your usage: use annual kWh for electricity and gas from your bill (or your online account). No data? Start with a best estimate.
- Confirm your meter and payment method: smart meter, traditional credit meter, or prepayment (standing charges can differ).
- Compare by total annual cost: standing charge + unit rates, using your region (postcode).
- Check the tariff terms: fix length, exit fees, discounts, and whether prices can change (SVT vs fix).
- Consider future changes: if you expect usage to fall (e.g. moving, lifestyle changes), a lower standing charge may matter more.
Quick comparison table: what to prioritise
| Household pattern | What usually matters most | Tariff features to look for |
|---|---|---|
| Low usage (small flat, single occupant) | Standing charge impact is high | Lower standing charge, transparent fees, avoid add-ons that raise fixed costs |
| Medium usage (typical household) | Balance of standing charge and unit rate | Competitive overall annual cost; consider fixing if you value predictability |
| High electricity usage (EV charging, larger home) | Unit rate drives the bill | Lower unit rate; evaluate time-of-use if you can shift usage off-peak |
| High gas usage (larger household, gas heating) | Gas unit rate is key, but standing charge still counts | Good gas unit rate; check fix length and exit fees |
Remember: “Cheapest tariff” in 2025 may mean different things depending on whether Ofgem’s consultation leads to reforms. Comparing based on your actual usage keeps your decision grounded—even while the policy discussion continues.
Standing charges by region: why your postcode changes the result
In Great Britain, electricity standing charges vary across distribution regions. Gas standing charges can also vary by network. That means two households on the same tariff name can pay different daily charges depending on where they live. This is why postcode-based comparison is essential when you’re hunting for the cheapest tariffs.
Electricity distribution regions
Different network costs sit underneath your tariff. Your supplier passes these on through the standing charge and unit rate mix.
Meter type and setup
Single-rate vs Economy 7 and smart time-of-use pricing can alter unit rates and how “cheap” a low standing charge really is.
Payment method
Direct Debit, standard credit, and prepayment options can have different price caps and pricing structures depending on eligibility and supplier.
If you want a quick answer on what’s cheapest for your home use the comparison form—we’ll match results to your postcode and usage to avoid misleading national averages.
Common mistakes when comparing standing charge tariffs
Mistake 1: Chasing the lowest standing charge only
A tariff that looks attractive on the daily fee can still be expensive if the unit rate is higher. Always calculate total expected annual cost for your own kWh use.
Mistake 2: Ignoring exit fees and fix end dates
A “cheap” fix can become costly if you need to leave early or if it ends and rolls onto a higher variable rate. Check the tariff terms and diarise your end date.
Mistake 3: Using national averages instead of postcode pricing
Standing charges differ by region. A deal that’s competitive in one area may be poor value in another. Postcode-based results prevent bad switches.
Mistake 4: Not updating usage when circumstances change
Working from home, buying an EV, or improving insulation can shift what “cheapest” means. Re-compare after major changes, not just when your fix ends.
FAQs: Ofgem standing charge consultation and cheapest tariffs
Is Ofgem removing standing charges in 2025?
Ofgem has been consulting on options, which can include alternative structures. A consultation doesn’t mean an immediate change across the market. Any reforms would take time and may be optional or phased.
What is the cheapest tariff type right now—fixed or variable?
It depends on the deals available in your region and your risk preference. Fixes offer price certainty for the term, while variable tariffs can change. Comparing whole-of-market options based on annual cost is the safest way to decide.
Can I get a tariff with no standing charge?
Some suppliers have offered low or zero standing charge style products at times, often with higher unit rates. Whether it’s cheaper depends heavily on your usage—low users may benefit, higher users may not.
Will switching affect my supply?
No. Your gas and electricity still come through the same pipes and wires. A switch changes who bills you and the prices/terms you pay, not the physical supply.
Do standing charges differ for Economy 7 or smart time-of-use?
They can. Economy 7 and time-of-use tariffs mainly change how unit rates apply across different times, but standing charges and regional pricing can still differ. Always compare with your exact meter setup.
How often should I compare tariffs?
At minimum, when your fixed tariff is nearing its end. It’s also worth re-checking after major life or home changes (EV, heat pump, insulation, or a house move) because the cheapest standing charge/unit rate mix may change.
What households tell us about standing charges
“We’re out a lot, so our usage is low. Seeing the annual total (not just the unit rate) made it obvious which tariff actually saved us money.”
— Emma, Cardiff
“We nearly switched for a lower standing charge, but the unit rate was higher. Comparing with our kWh stopped a bad decision.”
— Lewis, Glasgow
“The postcode results were different from the deals friends shared online. It was helpful to see what was actually cheapest in our area.”
— Priya, Manchester
Trust factors: Whole-of-market comparison approach, postcode-based pricing, and clear breakdown of standing charge vs unit rates. We focus on home energy in Great Britain.
Ready to check the cheapest tariffs for your postcode?
Standing charges are in the spotlight—but your best move is still to compare based on your own usage. Use our quick form to see whole-of-market options and choose the tariff structure that’s most likely to reduce your total annual cost.
- Whole-of-market home energy comparison
- Clear standing charge and unit rate breakdown
- No obligation—just informed options
Takes around 2 minutes. Have a bill handy if you can, but estimates are OK.
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