Ofgem standing charge reform 2026: how to save on home energy
Understand what the 2026 standing charge reform could mean for your gas and electricity bills — and compare whole-of-market tariffs to find a better deal today.
- Clear explanation of standing charges, the proposed changes and timelines
- Practical savings checklist for prepay, credit and smart meter households
- Compare tariffs across the market with one quick form
EnergyPlus is a whole-of-market comparison service for UK homes. Quotes depend on your usage, meter type and region.
Compare whole-of-market tariffs while reforms are still being shaped
Ofgem’s standing charge reform proposals for 2026 are designed to change how fixed daily charges are set and recovered. But your 2024–2026 bills still depend on today’s tariff rates, your region and your meter type. That’s why many households choose to compare and switch now rather than wait.
Use the form to compare options across the market for your home (not business energy). We’ll show tariffs that may reduce your total cost depending on how much energy you use — including options that better suit low, medium or high usage.
Tip: Standing charges can matter more if you use little energy. Unit rates matter more if you use a lot. A good comparison looks at both.
What you’ll need (takes ~2 minutes)
- Your postcode (to match your region and network area)
- Basic contact details so we can send your comparison results
- If you have it: current supplier and tariff name (optional)
Get your comparison
Fill in your details and we’ll match you with available home energy tariffs.
What is Ofgem’s standing charge reform (and why 2026 matters)?
A standing charge is the fixed daily cost you pay for being connected to the gas and electricity networks, regardless of how much you use. It helps cover network costs, metering, and other elements of the energy system.
Ofgem has been exploring reforms that could change how standing charges are structured and how some costs are recovered. Public consultation and policy development typically takes time, which is why you’ll see the reform discussed in the context of 2026 (as a potential implementation period) rather than “right now”.
The aim
Make charges fairer and more transparent, especially for households that use little energy or are struggling with fixed costs.
The key trade-off
If standing charges go down, other parts of the bill (like unit rates) could rise to recover costs — meaning impact varies by usage.
What you can do now
Don’t wait for policy changes to reduce today’s bill. Compare tariffs using your actual usage pattern.
Because the final approach and timings can change, the most reliable savings strategy is to focus on what you can control: tariff choice, how standing charges affect your usage profile, and switching when the numbers work.
Who could benefit (and who should check carefully)?
Standing charge changes are not automatically “good” or “bad” for everyone. The effect depends on how much energy you use, what you pay today, and whether lower fixed charges are offset by higher unit rates.
More likely to benefit from lower standing charges
- Low-usage homes (e.g., small flats, single occupancy)
- People who are out a lot, or use alternative heating sources
- Households actively cutting consumption (efficient appliances, insulation)
- Some prepayment meter customers (depending on tariff structure)
May need to check unit rates more closely
- High-usage families (where unit rates dominate the bill)
- All-electric homes (especially with electric heating)
- Homes with EV charging or high electricity demand
- Customers on tariffs with already-low standing charges
Reality check: even if standing charges reduce in future, the best tariff for you still depends on your total annual cost (standing charge + unit rate × usage). A proper comparison does this maths for your region.
How to save money ahead of standing charge reform (2024–2026)
If you’re waiting to see what Ofgem does, you can still take practical steps now. The goal is to reduce what you pay today and make sure you’re in the best position if pricing structures change later.
- Compare using annual cost, not headlines. A lower standing charge can look attractive, but if unit rates are higher you may pay more overall. Start with whole-of-market comparison.
- Check your usage profile. If you can access annual kWh usage from your bill or online account, use it. If not, estimate and then review after your first bill.
- Understand your meter type. Single-rate, Economy 7, smart meter and prepayment can all affect which tariffs are available and which pricing structure works best.
- Time any switch to avoid expensive default rates. If you’re on a standard variable tariff, it’s worth checking fixed or tracker alternatives. If you’re already fixed, check exit fees and end dates first.
- Reduce consumption where it matters. Quick wins: draft-proofing, lowering flow temperature (if you have a combi boiler), LED lighting, and optimising heating schedules.
- Re-check regularly. Energy prices move. A tariff that’s best today may not be best in 3–6 months — especially during regulatory change.
Low usage?
Focus on tariffs where the fixed daily cost doesn’t outweigh your small consumption. Compare total annual cost.
High usage?
Small unit-rate differences can outweigh standing charge changes. Prioritise competitive unit prices.
Prepayment?
Make sure you’re on the right prepay tariff and check whether a smart meter could open up more options.
Want the quickest path to savings? Use the comparison form and we’ll identify tariffs available in your area that may reduce your overall annual cost.
Standing charge explained (simple, practical)
Your energy bill is usually made up of two core parts: a daily standing charge and a unit rate (pence per kWh). Even if you go away for a week and use almost no energy, the standing charge continues each day.
| Bill component | What it is | Why it matters for saving |
|---|---|---|
| Standing charge | A fixed daily amount for keeping you connected and covering parts of the energy system costs. | Bigger impact for low-usage homes. A tariff with a lower standing charge can reduce your baseline cost. |
| Unit rate (kWh) | What you pay for each unit of energy you use. | Bigger impact for high-usage homes. A slightly cheaper unit rate can save a lot over a year. |
| Regional differences | Standing charges and unit rates vary across the UK due to network costs. | Comparing with your postcode ensures you see the tariffs relevant to your area. |
| Meter type | Single rate, multi-rate (e.g., Economy 7), smart, and prepayment can affect your options. | Choosing a tariff that matches how you use energy (including day/night use) is often a bigger win than focusing on one charge. |
A quick way to sanity-check any quote
- Multiply the daily standing charge by 365 to estimate your annual fixed cost.
- Multiply unit rate by your estimated annual kWh (gas and/or electricity).
- Add them together for an annual total. Compare like-for-like across tariffs.
Prefer not to do the maths? Use the EnergyPlus comparison form and we’ll compare total costs based on your details.
Common mistakes when standing charges are in the headlines
Mistake: switching based only on the standing charge
A lower daily charge can be offset by a higher unit rate. The right tariff depends on your usage pattern.
Mistake: not using postcode-specific pricing
Regional network costs mean your neighbour in another area may see different standing charges and rates.
Mistake: forgetting meter type (E7, smart, prepay)
Some tariffs aren’t available on certain meters. Others assume day/night usage that doesn’t match your home.
Mistake: waiting for 2026 to act
Reforms can change. Meanwhile, today’s tariff choice still determines your bills month to month.
Regional considerations across the UK
Standing charges and unit rates vary by region because network costs differ. That’s why you’ll see different prices in (for example) London vs the South West vs the North of Scotland. Your postcode is the quickest way to ensure you’re comparing like-for-like.
Important: Always compare prices for your exact meter type and region. Use the form to match tariffs correctly.
FAQs: Ofgem standing charge reform 2026
Is the standing charge definitely changing in 2026?
Ofgem has been exploring options and running consultations around standing charges, but final decisions and implementation dates can change. Treat 2026 as a likely window discussed in policy planning rather than a guarantee.
If standing charges go down, will my bill definitely drop?
Not necessarily. Costs may be recovered elsewhere (such as unit rates). Low-usage homes may benefit more, while high-usage homes should check the total annual cost.
Can I avoid paying the standing charge?
If you have an active supply, you generally pay a standing charge. Removing it would usually involve disconnecting supply, which is not practical for most homes. The realistic savings route is choosing a tariff that reduces your overall cost.
Does the Energy Price Cap set the same standing charge everywhere?
No. The cap varies by region and payment method, so standing charges and unit rates can differ depending on where you live and how you pay.
Is it worth fixing now or waiting?
It depends on current market rates, your risk preference, and whether you’re on a standard variable tariff. The best approach is to compare your options and pick the tariff that produces the lowest total cost for your situation today, then review periodically.
Will a smart meter help with standing charge reform?
A smart meter doesn’t remove standing charges, but it can open access to certain tariffs and makes it easier to track usage, which helps you choose the most suitable pricing structure.
Ready to cut your bill before 2026?
Standing charge reform may change the rules later — but you can still act now. Compare whole-of-market home energy tariffs and see what could work better for your household.
- Postcode-based pricing for your region
- Options suited to low, medium or high usage
- Clear focus on total annual cost
Back to Energy News
Why households use EnergyPlus
Whole-of-market comparisons
We compare across the market to help you find tariffs that fit your usage and region — not just “headline” prices.
Designed for real homes
Guidance that accounts for meter types, regional pricing differences, and the standing charge vs unit rate trade-off.
Clear next steps
You’ll know what to do next — whether that’s switching now, waiting, or adjusting your usage assumptions.
“The comparison made it obvious that a lower standing charge wasn’t the whole story. Switched based on annual cost and it’s been cheaper.”
UK homeowner, online quote
“We’re in a different region to family and prices weren’t comparable. The postcode-based results helped us pick the right tariff.”
UK homeowner, tariff comparison