When could changes to standing charges take effect?

Any changes would typically be implemented from 2026, following the consultation process, Ofgem’s decision, and supplier system updates. Timelines can vary, so it’s best to keep track of the final determination and planned implementation dates.

How might the consultation impact my energy bill?

If standing charge levels or the way costs are recovered change, you could see a different split between fixed daily charges and unit rates (the price per kWh). Depending on your usage, this may increase or decrease your overall bill. Households with lower consumption are often more sensitive to standing charge changes.

Could unit rates go up if standing charges go down (or vice versa)?

Yes. In many pricing models, reducing the fixed standing charge means more costs may be recovered through unit rates. That can benefit lower-usage customers but may increase costs for higher-usage households. The exact outcome depends on Ofgem’s final approach and supplier tariffs.

Who is most affected by changes to standing charges?

Standing charge changes can most affect customers with low energy usage (because fixed costs make up a larger share of their bill), people in smaller homes, and those who are away for long periods. Customers with high usage may be more impacted if costs shift into higher unit rates.

What can I do now to reduce my standing charge and overall costs?

Standing charges are set by your tariff, so you can compare tariffs to see if alternative options offer better overall value for your usage. You can also reduce total cost by improving efficiency (e.g., insulation, smart controls) and ensuring you’re on a tariff that fits your consumption pattern.

Should I switch tariffs now or wait until 2026?

If your current tariff isn’t competitive for your usage, switching sooner can help you save immediately. Waiting for 2026 may mean paying more in the meantime. A practical approach is to review your tariff regularly and choose the best-value option based on your current consumption, while keeping an eye on Ofgem updates.

How can EnergyPlus help me respond to standing charge changes?

EnergyPlus can help you understand how tariff structures affect your bill and identify options that better match your usage. If standing charge rules change, you can revisit your tariff choice and compare the expected impact on both standing charges and unit rates. Learn more at https://www.energyplus.co.uk/ or browse updates at https://www.energyplus.co.uk/news.

Ofgem standing charge consultation 2026: what it could mean for your energy bills

Q: What is Ofgem's standing charge consultation for 2026?

Ofgem’s standing charge consultation for 2026 is a review of how standing charges are set and applied on energy bills. Standing charges are the fixed daily costs you pay regardless of how much gas or electricity you use. The consultation explores potential changes to make charges fairer and improve how costs are recovered across customers.

Ofgem is consulting on potential reforms to electricity and gas standing charges from 2026. If you’re worried about higher fixed costs, low usage, or whether you’ll be better off on a different tariff, compare whole-of-market options in minutes with EnergyPlus.

Clear explanation of the consultation and possible outcomes
See how tariff structure changes could affect different households
Compare deals across the market (not just a panel) and apply in one place

Compare home energy deals Read what’s changing

EnergyPlus is a comparison service. Estimates depend on your region, usage and tariff availability. We’ll always show unit rates, standing charges and key terms where provided by suppliers.

What is Ofgem’s standing charge consultation for 2026?

Standing charges are the daily fixed costs you pay for having an electricity and/or gas supply (even if you use little or no energy). Ofgem’s consultation explores options to change how these fixed costs are collected from households from 2026 onwards.

Because standing charges and unit rates work together, any change could shift the balance between your fixed daily cost and the price per kWh. That’s why two homes with the same supplier can feel the impact differently.

Important: A consultation is not a final decision. Ofgem gathers evidence, considers responses and then decides whether to implement changes. This page explains the likely areas of impact and how to protect your household costs.

Why standing charges are under review

Fairness: households with low usage (e.g. small flats, second homes, some vulnerable customers) can feel disproportionately affected by fixed costs.
Cost recovery: networks and supplier operating costs still need to be funded, regardless of how much energy you use.
Incentives: different structures can influence how strongly households benefit from reducing consumption.

Quick take: what could change?

Lower standing charges with higher unit rates
Alternative tariff structures (e.g. different ways to split fixed vs variable costs)
Targeted changes for specific customer groups or payment methods

Exact outcomes depend on Ofgem’s decision and supplier pricing once changes (if any) take effect.

Want to see today’s best options?

If standing charges rise or fall in future, the best move now is to make sure your current tariff still fits your usage. Compare whole-of-market deals with clear breakdowns.

Start comparison

Compare home energy tariffs with standing charge clarity

Energy bills are driven by unit rates (p/kWh), standing charges (p/day), and how you use energy across the year. While the 2026 consultation develops, you can still reduce risk by choosing a tariff that suits your consumption pattern now.

Whole-of-market comparison for home energy (where available)
See standing charge and unit rate before you apply
Consider fixed and variable tariffs, plus term length
Designed for households in England, Scotland and Wales (Northern Ireland differs)

Tip: If you use very little energy, the standing charge can represent a larger share of your total bill. If you use a lot (e.g. larger household, electric heating), unit rates may matter more. We’ll help you compare both.

Get your personalised comparison

Postcode Fuel type Payment method Email (to send your results)

How to prepare

By submitting, you agree to be contacted about your comparison results. You can opt out at any time. We use your postcode to show tariffs available in your area.

Who could feel the impact most?

A shift in standing charges generally means a shift in unit rates too. The net effect depends on your usage, your region (network costs vary), and your payment method.

Low-use households

If your usage is low (e.g. small home, single occupancy, second home), standing charges can make up a bigger share of your bill. Any reform that reduces fixed costs could benefit you, but higher unit rates may offset savings if your usage rises.

High-use households

For larger families or homes with high electricity demand, unit rates can dominate total cost. If standing charges fall but unit rates rise, high-use homes may pay more overall unless they can reduce consumption.

Prepayment & budgeting

Daily standing charges can affect how quickly credit is used up. If structures change, it may alter topping-up patterns and how costs are spread across seasons. Comparing tariffs with clear pricing can help you plan.

Standing charges vs unit rates: why the mix matters

Your total cost isn’t just “the price per unit”. For most households, a tariff is a mix of a daily standing charge plus the unit rate. When policy or market conditions shift, suppliers can rebalance those two components.

Cost component	What it covers (typically)	Who notices it most
Standing charge (p/day)	Fixed costs of providing and maintaining supply, some network and policy-related costs, metering and billing/operating costs.	Low-use homes, empty properties, people trying to keep usage down.
Unit rate (p/kWh)	Cost of energy you consume, plus supplier margins and other costs built into the variable rate.	High-use homes, electric heating, EV charging, larger families.
Regional variation	Distribution network costs vary across regions, which can influence standing charges and/or unit rates.	Anyone comparing deals across regions, or moving home.

Practical takeaway: Don’t judge a tariff on standing charge alone. The “best” deal depends on the combined cost for your usage over a year. That’s why a whole-of-market comparison is useful, especially when policy changes are being considered.

How to prepare now (before 2026)

You can’t control consultation outcomes, but you can reduce uncertainty. Use these steps to make sure you’re not overpaying and you’re positioned well if tariff structures change.

Find your current standing charge and unit rate on a recent bill, online account, or tariff information label.
Check your annual usage (kWh for electricity and gas). If you have a smart meter, use your in-home display or supplier app.
Compare like-for-like: look at the combined annual cost, not just the headline rate. Include exit fees and tariff end dates for fixed deals.
Plan for seasonality: winter usage is higher for most homes. A tariff that looks cheap on a low-usage month can feel different in cold weather.
Review again when your fix ends (or if prices shift). Even a small difference in standing charge can add up over 365 days.

If you use very little energy

Prioritise tariffs with competitive standing charges and reasonable unit rates.
Check whether you’re on the right payment method for your circumstances.
Make sure your meter type and tariff match (especially if you have legacy meters).

If you use a lot of energy

Unit rate competitiveness is often the biggest driver of savings.
If you can shift usage (e.g. EV charging), check whether time-of-use options suit you.
Look at home insulation and heating controls to reduce kWh, whichever pricing structure applies.

Regional considerations across Great Britain

Standing charges vary by region because parts of the cost stack (particularly distribution networks) are regional. That’s why the same supplier and tariff name can still have different pricing depending on your postcode.

Northern Ireland: the energy market and regulation differ from Great Britain. If your postcode is in Northern Ireland, results and switching routes may not match GB processes.

Moving home in 2025–2026?

If you’re relocating, your new region can change standing charges and unit rates. When you have the new postcode, run a fresh comparison and check whether you can take your existing fixed tariff with you.

FAQs: Ofgem standing charge consultation 2026

Will standing charges definitely change in 2026?

Not necessarily. A consultation is a proposal and evidence-gathering process. Ofgem may adopt, amend, delay or drop reforms after reviewing responses and impact assessments.

If standing charges go down, will my bill go down?

Not automatically. If fixed costs reduce, unit rates may rise to recover costs elsewhere. Low-use homes might benefit more; high-use homes might see smaller gains or even higher totals depending on the new balance.

Is the standing charge the same on fixed and variable tariffs?

No. Both fixed and variable tariffs can have different standing charges and unit rates. Always check the tariff details for your region and payment method.

Does reducing energy use still help if standing charges are high?

Yes—reducing kWh reduces the variable portion of your bill. But if standing charges form a large part of your total, savings from using less may feel smaller. Choosing a suitable tariff can make your usage reductions more rewarding.

What details do I need to compare accurately?

Your postcode and fuel type are a good start. For the best accuracy, add your annual usage (kWh) from your bill or smart meter history, plus your current tariff end date and any exit fees if you’re in a fixed deal.

If you want to understand your current costs first, jump back to Compare & switch and we’ll help you benchmark your tariff against available options.

Trust & social proof

“The breakdown of standing charge and unit rate made it easier to choose a tariff that matched our low usage.”

Homeowner, Greater Manchester

“Switched in one evening. The comparison helped us avoid a deal that looked cheap until we saw the standing charge.”

Tenant, Bristol

“Good to have whole-of-market options in one place, especially with prices changing.”

Household, Glasgow

What you’ll see in results: standing charges (p/day), unit rates (p/kWh), estimated annual cost (where available), tariff length, exit fees, and key terms.

Ready to check your standing charge and switch with confidence?

The 2026 consultation may reshape how fixed costs show up on bills. Don’t wait to find out you’re on the wrong tariff—compare whole-of-market home energy deals today.

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Switching is for home energy customers. Availability varies by region and supplier. Always check tariff terms before proceeding.

Prefer a quick start?

Have a bill handy if you can (for kWh)
Know your payment method
Use your postcode for accurate regional pricing

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Updated on 22 Dec 2025