What is Ofgem’s standing charge reform and when could it start?

Ofgem is consulting on reforms to how standing charges are applied on energy bills. The changes are being discussed with a potential timeline around 2026, subject to consultation outcomes and implementation decisions. If introduced, the way your fixed daily charge and unit rates are structured could change, affecting which tariffs work best for different households.

Would a lower standing charge always mean a cheaper energy tariff?

Not always. Tariff cost depends on both the standing charge (daily fixed cost) and the unit rate (cost per kWh). A lower standing charge can be better for low-usage homes, but it may come with a higher unit rate that can make it more expensive for higher-usage households. Comparing your annual cost using your typical usage is the most reliable way to choose.

Who benefits most from standing charge reforms?

Households with low energy consumption often feel standing charges most, because the fixed cost makes up a larger share of their bill. If reforms reduce or re-balance standing charges, low-usage customers may see better-value options. Higher-usage households may find the unit rate matters more, so the ‘best’ tariff can differ by usage profile.

How can I find the cheapest tariff for my home ahead of 2026?

Start with your recent usage (kWh) from your bill or smart meter, then compare tariffs using the total estimated annual cost (standing charge + unit rate). If you want to see what you could save, compare current deals and switch online at https://www.energyplus.co.uk/.

Should I switch now or wait for Ofgem’s 2026 changes?

Waiting can mean missing savings available today. If your current tariff is expensive or you’re coming to the end of a fix, it can make sense to compare options and switch if you can reduce your total annual cost. You can review the latest tariffs and switch at https://www.energyplus.co.uk/.

What information do I need to switch energy tariff with Energy Plus?

Typically you’ll need your address and current supplier details, plus an idea of your annual usage (or a recent bill). Once you have that, you can compare available tariffs and start a switch at https://www.energyplus.co.uk/.

Ofgem standing charge reform 2026: find the cheapest tariffs for your home

Ofgem is consulting on changes to how standing charges work in Great Britain. If reforms land in 2026, the cheapest energy tariff for you may change—especially if you use less energy, live alone, or have been hit by high fixed daily charges. Compare whole-of-market home energy tariffs with EnergyPlus and get a tailored shortlist in minutes.

Compare whole-of-market home energy tariffs (not just a panel)
See options that could reduce what you pay in standing charges and unit rates
Switch online or request a call back—no obligation

Check cheapest tariffs for my postcode Understand the 2026 changes

EnergyPlus.co.uk is a comparison service for UK households. We’ll use your details to provide quotes and support your switch. Ofgem proposals may change—always check tariff terms before you choose.

Compare the cheapest tariffs under standing charge reform (2026-ready)

“Cheapest” isn’t just the headline unit rate. With Ofgem standing charge reform on the table, the best value tariff for your household depends on how much energy you use, where you live, and how tariffs price the fixed daily charge versus the per-kWh rate.

Complete the form and we’ll shortlist whole-of-market home energy tariffs for your postcode, including options that may suit:

Low-use households seeking lower fixed costs
High-use households focusing on lower unit rates
Prepayment vs credit meters (where available)
Fixed deals vs variable tariffs—depending on risk and flexibility

Important: Ofgem standing charge reform proposals are not final. This page explains what’s being discussed and how to shop for value now—plus how to stay prepared if changes are introduced in 2026.

Get my cheapest home energy options

Tip: If you have a smart meter, your actual usage pattern can matter. A tariff that looks cheap on unit rate alone may cost more once standing charges are included.

Looking for background first? Jump to what’s changing in 2026 or how to judge the cheapest tariff.

Who could benefit from standing charge reform?

Standing charges are the fixed daily costs on your bill (shown separately for electricity and gas) that you pay regardless of how much energy you use. If Ofgem reforms reduce or reshape these charges, the impact won’t be the same for everyone.

Low-use households

If you use less energy (for example, a flat, single occupant, or you’re often away), high standing charges can feel disproportionate. Reform may shift more of the cost into the unit rate—or reduce the fixed element—so shopping around becomes even more important.

High-use households

If more cost is moved from standing charge into the unit rate, households with higher usage may see different “best value” deals. The cheapest tariff may hinge on the per-kWh price and the fix length, not the daily charge.

People in higher-charge regions

Standing charges vary by region and meter type. If you’re in an area with higher daily charges, reforms could make a noticeable difference—yet tariff pricing strategies will vary, so comparing whole-of-market options matters.

Bottom line: Reform could change which tariffs are “cheapest” for your exact usage. That’s why EnergyPlus compares tariffs based on your details—not averages.

Ofgem standing charge reform 2026: what’s being discussed?

Ofgem has been exploring ways to make energy bills fairer and clearer—especially around fixed daily charges. While the exact approach and timeline can change, the direction of travel has put a spotlight on how standing charges are set and how much of your bill is “fixed” versus “usage-based”.

For households, this matters because the standing charge affects the value of different tariff structures. A deal with a low unit rate but a higher daily charge may not be cheapest if you’re a low user. Conversely, a higher unit rate with a reduced standing charge could suit some households—but cost more for others.

Standing charge: what it covers

Keeping your home connected to the network
Maintenance and operational costs
Metering and billing-related costs (varies by setup)
Some policy and system costs (depending on how charges are structured)

Why reform could affect “cheapest tariffs”

Suppliers may reprice deals if standing charges change
Low vs high usage households could see different winners
Regional differences can narrow or widen
Fixed deals may become more attractive (or less) depending on market pricing

If you’re comparing tariffs today, focus on total annual cost for your home, not just the standing charge or the unit rate. See how to choose the cheapest tariff.

How to choose the cheapest tariff (standing charge + unit rate)

When standing charges are in flux, it helps to compare tariffs in a consistent way. Here’s a practical method you can use—whether you’re switching now or planning for 2026.

Estimate your annual usage (kWh) for electricity and gas. Use your bill, online account, or smart meter data if available.
Calculate standing charge cost: daily standing charge × 365 (for each fuel).
Calculate unit cost: unit rate (p/kWh) × annual usage.
Add them together, then include any discounts or extras (rare on most modern tariffs—always check terms).
Check exit fees and fix length. The cheapest today may cost more if you need flexibility.

Cost element	What to look at	Why it matters under reform
Standing charge	p/day for electricity and gas (varies by region and meter type)	If standing charges reduce or are reshaped, suppliers may adjust unit rates to balance costs.
Unit rate	p/kWh for electricity and gas	Low standing charge can come with higher unit rates—this affects higher-use homes most.
Tariff type	Fixed vs variable; single-rate vs other structures (where offered)	Pricing shifts can change which structure is best for your usage pattern.
Fees & terms	Exit fees, payment method rules, smart meter requirements (if any)	A “cheap” headline can be less valuable if you need flexibility or don’t meet conditions.

Want a quick answer without spreadsheets? Use the EnergyPlus form and we’ll compare total costs using your postcode and details.

What could standing charge reform look like in 2026?

The exact design (and timing) of Ofgem’s standing charge reform may evolve. But in practice, reforms often mean one of three broad outcomes. Use these scenarios to understand what might happen to “cheapest tariffs” for your home.

Scenario A: Lower standing charges

Fixed daily charges fall, so low-use households pay less in unavoidable costs.

Potential win for low users
Suppliers may adjust unit rates
“Cheapest” deals could shift quickly

Scenario B: Rebalanced costs

More costs move into the unit rate, reducing the fixed element but increasing usage-based charges.

High-use homes need strong unit rates
Usage estimates become more important
Best tariff depends on your kWh

Scenario C: New tariff choices

The market offers more tariff structures (where allowed), which can help some households but adds complexity.

More choice—but more to compare
Terms and eligibility matter
Whole-of-market comparison helps

Planning tip: If you’re nearing the end of a fix, compare the cost of a new fixed deal versus going variable—then set a reminder to review again if reforms are confirmed.

Common mistakes when shopping for the cheapest tariff

Comparing unit rates only

A low p/kWh can hide a high daily standing charge. Always compare total annual cost for your actual usage.

Using the wrong usage estimate

If your kWh estimate is too high or too low, you can pick a tariff that’s “cheap” on paper but expensive in reality.

Ignoring exit fees

If reforms or prices change, you may want to switch again. Exit fees can reduce the benefit of a fixed deal.

Not checking meter type

Some tariffs vary by meter setup and region. Make sure the tariff you choose matches your home’s meter type and payment method.

Compare tariffs properly (total cost)

FAQs: standing charges, reform and cheapest tariffs

Will standing charges be removed in 2026?

Standing charge reform has been discussed and consulted on, but removal isn’t guaranteed. Even if standing charges reduce, some costs may move into unit rates. The best approach is to compare based on total annual cost and keep an eye on confirmed Ofgem decisions.

How do I find the cheapest tariff if standing charges change?

Use your annual usage (kWh) and compare tariffs by adding: (standing charge × 365) + (unit rate × kWh). Then review exit fees and tariff length. Or use EnergyPlus to compare whole-of-market options for your postcode.

Do standing charges vary by region?

Yes. Standing charges and unit rates can vary by region, fuel, and meter type. That’s why postcode-based comparison is important—two households with the same usage can pay different totals.

Is it worth fixing now if reform happens in 2026?

It depends on current market prices, your risk tolerance, and whether the fix includes exit fees. If you want flexibility, look for tariffs with low or no exit fees. If you want price certainty, a fixed tariff may still suit you—even if reforms later change market pricing.

Does this apply across the UK?

This page focuses on Great Britain where Ofgem regulates the retail energy market. If you’re in Northern Ireland, the market and regulator are different. If you’re unsure, submit your postcode and we’ll route you to the right options where available.

Need help? Start with the postcode form. If you have your annual kWh from a bill, keep it handy for more precise results.

What UK households value about EnergyPlus

A standing charge shake-up makes clarity even more important. Here are common reasons people use a whole-of-market comparison service.

“I needed a tariff that didn’t punish low usage. Comparing total cost (standing charge included) made the difference.”

Home energy customer, England

“The explanation of standing charges vs unit rates helped me choose a fix that fits how we actually use energy.”

Home energy customer, Scotland

“Postcode-based comparison was key. What’s ‘cheap’ in one region wasn’t for us.”

Home energy customer, Wales

Trust signals: Whole-of-market comparison • UK household focus • Clear tariff breakdowns • Support through the switching steps

Ready to see the cheapest tariffs for your home?

Standing charges can change the “best deal” more than most people expect. Compare whole-of-market home energy tariffs with EnergyPlus and get a personalised shortlist based on your postcode.

Fast comparison for electricity and/or gas
Focus on total annual cost, not just headline rates
Switch with support if you choose to proceed

Compare cheapest tariffs now

Takes about 2 minutes. No scripts, no jargon—just clear options for your home.

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Updated on 14 Feb 2026