Ofgem standing charge reform 2026: how to switch and compare
If Ofgem changes standing charges in 2026, your best move is to stay flexible. Compare whole-of-market home energy deals with EnergyPlus and switch when it suits you—without guessing.
- Understand what the 2026 standing charge reform could mean for your bill
- See when switching makes sense (and when it doesn’t)
- Check if a fixed deal, variable tariff or tracker fits your usage
- Get personalised results with a quick form (no obligation)
UK domestic energy only. Standing charge reform proposals may change—this page explains how to switch confidently as updates are confirmed.
Compare home energy tariffs with standing charges in mind
Standing charges can make a big difference to your total annual cost—especially if you use less energy, have solar export, or keep your heating low. If Ofgem’s standing charge reform lands in 2026, suppliers may reshape prices (for example, shifting more cost into unit rates or offering new tariff structures).
EnergyPlus is a whole-of-market comparison service for UK homes. Tell us a few details and we’ll show options that suit your usage and preferences, including:
- Fixed vs variable options (and how exit fees may apply)
- Tariffs where standing charge is a key factor in overall value
- Deals that match your meter type (credit, prepayment, smart meter)
- Supplier switching with minimal disruption—your supply stays on
Tip: If you’re a low user, a tariff with a lower standing charge can sometimes beat a slightly cheaper unit rate. If you’re a high user, unit rate often matters more—but the standing charge still adds up.
Important: Ofgem hasn’t confirmed final 2026 standing charge reforms in law at the time of writing. This guide focuses on how to switch safely as reforms are consulted, announced and implemented.
Why the standing charge reform matters when you switch
Your bill may be reshaped
Reform could shift costs between standing charges and unit rates. Switching based on a single number can be misleading—compare using estimated annual cost and your usage pattern.
Low users could be affected most
If you use less energy, standing charges can represent a larger share of your annual cost. A small change can make a noticeable difference—good or bad.
New tariff styles may appear
Suppliers can respond with different structures (for example, different standing charges by payment type, or time-of-use options). Whole-of-market comparisons help you see the full picture.
Region still matters
Standing charges vary by region and network costs. Always check prices using your postcode, not national averages.
Fixing is about certainty
A fixed tariff can protect you from price swings, but you may pay more if prices fall or if reforms change the best-value structure for your usage.
Switching stays simple
Even if charging structures evolve, the switching process remains familiar: compare, apply, and your new supplier manages the changeover.
What is Ofgem’s standing charge reform for 2026?
Ofgem has discussed options to change how certain fixed costs are recovered on domestic energy bills. Today, most tariffs include a standing charge (a daily fixed amount) plus a unit rate (what you pay per kWh). A reform could adjust that balance—potentially reducing standing charges for some households and moving more cost into unit rates, or introducing alternative structures.
Because reforms can be consulted on, updated and phased in, the practical question for households is: how do you switch now without being caught out later? The answer is to compare using your real usage and choose the right level of flexibility.
Standing charge basics (quick, accurate)
| Bill part | What it is | Why it matters for switching |
|---|---|---|
| Standing charge (per day) | Fixed daily cost covering items like network costs, metering, and policy costs (varies by region and payment method). | If you use less energy, standing charges can dominate your annual cost—so the “best” tariff may not be the one with the lowest unit rate. |
| Unit rate (per kWh) | Cost per unit of energy you use. Can vary by tariff type (fixed, variable, tracker, time-of-use). | High users are more sensitive to unit rate. If standing charges fall, unit rates may rise—changing which tariff wins for you. |
| Exit fees (some fixed deals) | Charge for leaving a fixed tariff early (not on all deals; amounts vary). | If you want flexibility ahead of 2026 changes, consider deals with low/no exit fees—always check the tariff terms. |
| Price cap (Ofgem) | A cap on the unit rate and standing charge for typical default tariffs, updated periodically. Not a cap on your total bill. | Price cap levels influence market pricing and can change how attractive fixes look, especially around policy reform windows. |
Plain-English takeaway: When you compare tariffs, don’t compare “standing charge only” or “unit rate only”. Compare the estimated annual cost based on your usage, and decide how much flexibility you want ahead of potential 2026 changes.
When should you switch if standing charges might change in 2026?
There’s no single date that’s right for everyone. What matters is your current tariff, your exit fee (if any), your usage, and whether you value certainty over potential future savings.
Switch now if…
- You’re on an expensive standard variable tariff and can get a better deal.
- Your fixed deal has ended (or ends soon) and the new rates are higher.
- You can switch with no/low exit fee and want to reduce costs today.
- Your usage is low and standing charges are a big part of your bill.
Consider staying flexible if…
- You’re locked into a fixed deal with a meaningful exit fee.
- You expect your usage to change (moving home, heat pump, EV, household size).
- You’re waiting for confirmed reform details before committing long-term.
- You’d rather use a shorter fix or a tariff with easier switching.
Practical approach for 2026 uncertainty: If you want protection and flexibility, compare fixed tariffs with shorter terms or lower exit fees. If you’re happy to monitor changes, compare variable/tracker options too—just be clear on the risk of price rises.
How to switch energy supplier in the UK (step-by-step)
Switching supplier is straightforward and your gas/electricity supply stays on. The main admin tasks are checking your current tariff terms and making sure your details are accurate.
- Find your current rates and standing charges on a recent bill, your online account, or your welcome letter.
- Check your tariff end date and any exit fee (fixed deals may charge for leaving early).
- Compare whole-of-market tariffs using your postcode and (ideally) annual usage in kWh.
- Choose the deal that fits your priorities: cheapest estimated annual cost, price certainty, green preference, or flexibility ahead of 2026.
- Apply to switch. Your new supplier contacts your old supplier—no engineer visit is usually needed.
- Take a meter reading on switch date so your final bill and first bill are accurate (smart meters may do this automatically).
What you’ll need to switch
- Address and postcode
- Your preferred contact details
- Payment preference (Direct Debit, on receipt of bill, prepayment)
- Optional: annual usage in kWh (electricity and gas) for best accuracy
Common switching mistakes to avoid
- Comparing tariffs without your postcode (regional standing charges vary).
- Assuming a low standing charge always wins (unit rate can outweigh it).
- Forgetting exit fees on your current fix.
- Not taking a meter reading on switch date.
Regional standing charges: why your postcode changes the answer
Standing charges differ across the UK because network costs and regional charging vary. That’s why “average UK standing charge” headlines aren’t enough to choose a tariff. Always compare with your postcode and your meter/payment type.
Distribution region
Your electricity network area affects standing charges and unit rates. Two homes using the same energy can pay different totals in different regions.
Payment method
Direct Debit tariffs can be priced differently from pay-on-receipt or prepayment. If reforms adjust standing charges, these differences may shift too.
Meter type
Smart meters can access time-of-use tariffs (where available). If you can shift usage, unit-rate structure may matter more than the standing charge.
Best practice: Use your postcode, then judge tariffs by estimated annual cost. If you don’t know your annual kWh, start with your last 12 months of bills or your online account—then refine.
FAQs: standing charges, reform and switching
Will standing charges be removed in 2026?
There have been consultations and proposals about changing how fixed costs are recovered. Any final outcome depends on Ofgem’s decisions and implementation timelines. If you’re planning ahead, focus on choosing a tariff that fits your usage and offers the flexibility you want.
If standing charges fall, will unit rates rise?
Potentially. If less cost is collected via standing charges, suppliers may need to recover it elsewhere (often via unit rates). That’s why comparing on estimated annual cost is more reliable than looking at one price component.
Can I switch if I’m in debt to my supplier?
Sometimes yes, depending on your payment method and circumstances. If you’re on prepayment, you may be able to move with debt under agreed rules. If you’re on credit, the debt may need settling. If you’re unsure, compare options and check with your supplier.
Will switching affect my smart meter?
In most cases your smart meter continues to work, but features can vary by supplier and tariff. If you’re considering time-of-use pricing, check eligibility and how readings are handled.
Do I need to contact my current supplier to switch?
Usually no. Your new supplier handles the switch. You should still check your current tariff terms, especially end dates and exit fees, and keep a meter reading for accuracy.
What if I’m a low user or have solar panels?
Low users often feel standing charges more. If you have solar, import usage may be lower which can increase the standing charge share of your bill. Comparing with accurate annual kWh helps you choose the right structure, especially if reforms change the balance of costs.
Not sure what to pick? Use the form above to compare, then choose based on your priorities: lowest estimated annual cost, price certainty, or flexibility as 2026 details become clearer.
Why households use EnergyPlus to compare and switch
When price structures may change, the safest approach is clear comparisons and straightforward switching. Here’s what people value about our approach.
Whole-of-market comparisons
We help you compare a broad range of domestic tariffs so you can choose on value—not assumptions about standing charges.
Postcode-accurate pricing
Because standing charges vary by region, postcode-based comparisons help prevent costly surprises.
Clear next steps
We focus on what matters: estimated annual cost, tariff terms (including exit fees), and a simple switching journey.
What customers say
“The comparison was easy and the options were clearly explained.”
Homeowner, England
“I didn’t realise my standing charge was driving the cost. The results helped.”
Flat resident, Scotland
“Switching was smoother than I expected—no disruption.”
Family household, Wales
Trust markers that matter
- Domestic energy comparisons (not business)
- Postcode-based pricing context
- Tariff-terms awareness (including exit fees)
- Switching process explained in plain English
Ready to switch ahead of 2026 changes?
Compare whole-of-market home energy tariffs using your postcode and get options that make sense whether standing charges go up, down, or simply change shape.
- Quick form, no obligation
- Postcode-accurate comparisons
- Switching steps explained clearly
Start your comparison
Switching is for UK domestic customers. Your supply remains on during the switch.
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