Ofgem standing charge reform 2026: who will save?
Ofgem is exploring changes to how standing charges work from 2026. Find out who’s most likely to benefit, who could pay more, and compare whole-of-market home energy deals with EnergyPlus to protect your bills.
- Clear guidance for UK households (not business)
- See how lower standing charges could affect low-usage and high-usage homes
- Compare tariffs across the whole market in minutes
Estimates are illustrative and depend on Ofgem decisions, your region, meter type and usage. Compare results may include fixed and variable tariffs.
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Standing charges are the daily fees you pay to stay connected to the gas and electricity networks, even when you use little or no energy. Ofgem’s 2026 standing charge reform proposals could shift more of your costs into the unit rate (the price per kWh) and reduce the fixed daily element.
Whatever happens, the best protection is to compare tariffs based on your usage and postcode. EnergyPlus searches the whole market to help you find a tariff that fits how you live at home.
Tip: If you’re on a standard variable tariff (SVT), you’re typically more exposed to price cap movements. A suitable fixed tariff may add certainty—though it won’t suit everyone.
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What is Ofgem proposing for standing charges in 2026?
Ofgem has been reviewing whether standing charges are fair—especially for households that use very little energy, people who are rarely at home, and those who’ve reduced consumption through efficiency measures. While final decisions and timings can change, the direction of travel being discussed is a rebalancing of bills: less fixed daily charge, more paid through the unit rate (pence per kWh).
Standing charge (daily)
The fixed amount you pay each day for electricity and gas, regardless of usage. It helps cover network and supplier costs.
Unit rate (per kWh)
The price you pay for the energy you actually use. If standing charges fall, unit rates may rise to recover costs.
Regional differences
Standing charges vary by region and meter type. Any reform would still need to account for network costs across Great Britain.
Important: This page is a practical guide to help you understand potential impacts and compare tariffs. It isn’t financial advice, and the exact 2026 framework will depend on Ofgem’s final consultation outcome.
Who is most likely to save if standing charges fall?
If Ofgem reduces standing charges and shifts more cost into unit rates, the outcome often depends on one thing: how much energy you use. Lower fixed charges generally help low-usage households; higher unit rates can increase costs for high-usage households. The point where costs “break even” varies by tariff, region, and how the reform is implemented.
More likely to benefit
- Small flats and well-insulated homes with low consumption
- Single occupants and households away from home most days
- People who have reduced usage through efficiency (LEDs, insulation, heat controls)
- Homes with minimal gas use (e.g., electricity-only or very low heating demand)
Could pay more
- Larger households with consistently high electricity use (multiple occupants, devices, home working)
- Homes using electric heating or heat pumps (higher kWh usage)
- Properties with poorer insulation and higher heating demand
- Anyone already on a tariff with low unit rates and higher standing charges
Rule of thumb: If your bill feels high even when you use very little, standing charge reform may help. If your usage is high, you’ll want to focus on the unit rate and whether a fixed tariff suits your household.
Illustrative bill examples: standing charge vs unit rate
The table below shows a simplified example of how shifting costs could affect different usage levels. These aren’t forecasts and won’t match every tariff. They’re designed to show why low-usage homes often gain more from a lower standing charge, while higher usage can become more expensive if unit rates increase.
| Household type | Annual electricity use (kWh) | If standing charge falls | If unit rate rises | Likely direction |
|---|---|---|---|---|
| Low-usage flat (single occupant) | ~1,500 | Meaningful reduction in fixed costs | Smaller impact because kWh is lower | More likely to save |
| Typical home (2–3 occupants) | ~2,700–3,100 | Some savings on standing charge | Moderate increase in usage cost | Depends (break-even varies) |
| High-usage household (WFH, lots of devices) | ~4,500+ | Lower fixed costs help | Bigger increase due to higher kWh | More likely to pay more |
Your postcode matters because standing charges and unit rates vary by region. Your meter type also matters (e.g., single-rate vs multi-rate). Use the form above to compare options tailored to your home.
How to prepare for standing charge reform (practical steps)
Even before any 2026 changes, you can put yourself in a strong position by understanding your current tariff and usage. These steps help you avoid switching based on headlines and focus on what affects your bill.
- Check your annual usage (kWh). Use your latest bill, online account, or smart meter app. Usage is what drives whether a higher unit rate would hurt or help.
- Separate standing charge from unit rate. Look at your tariff details. Two tariffs can have similar annual costs but very different splits.
- Know your meter setup. Economy 7/multi-rate and smart meters can affect which tariffs are suitable for you.
- Compare across the whole market. A whole-of-market search is the fastest way to see whether you’d benefit from a different mix of standing charge and unit rate.
- Consider fixing (if it suits your risk preference). Fixing can provide budgeting certainty. Always check exit fees and the tariff end date.
If you’re a low user
Prioritise tariffs with fair fixed costs, and watch for deals where standing charges are low without an excessive unit rate.
If you’re a high user
Unit rates become crucial. Compare on total annual cost and consider efficiency steps that reduce kWh (controls, insulation, appliance upgrades).
If you’re not sure
Start with your postcode and an estimate of usage. EnergyPlus can highlight options where the standing charge/unit rate balance fits your home.
Common mistakes to avoid
Focusing only on standing charge
A lower standing charge can look appealing, but if the unit rate is higher it may cost more overall—especially for larger families or homes with electric heating.
Not using your postcode
Regional charges vary. Comparing without your postcode can lead to misleading expectations about savings.
Assuming reform equals lower bills for everyone
Rebalancing tends to create winners and losers. The best approach is to compare your annual cost across available tariffs and consider your usage pattern.
Staying on an expensive default tariff
If you’ve not reviewed your tariff recently, you may be overpaying. A whole-of-market comparison can highlight better-value options for your home.
FAQs: Ofgem standing charge reform 2026
What is a standing charge on my energy bill?
A standing charge is a daily fixed fee for electricity and gas. It contributes to costs such as maintaining the networks, metering, and some supplier operating costs. You pay it even if your energy usage is low.
When could standing charge changes happen?
Ofgem timelines can evolve. “2026” is widely discussed in relation to reform options, but the exact start date, design, and transition approach depend on final decisions after consultation and implementation planning.
Will standing charges be removed completely?
Full removal has been debated, but many proposals focus on reducing or reforming how the charge is recovered rather than eliminating it. If fixed costs are reduced, they’re often recovered through unit rates or other mechanisms.
Could low standing charges mean higher unit rates?
Yes. If suppliers recover less through a daily charge, they may recover more through the price per kWh. That’s why it’s important to compare tariffs using your annual usage rather than choosing based on standing charge alone.
Does this affect prepayment meters and smart meters?
Standing charges apply across meter types, but rates and structures can differ. Smart meters can make it easier to track usage and choose tariffs that match your pattern, including multi-rate options where available.
How do I know if I’m a low-usage household?
Check your annual kWh on your bill(s) or online account. As a rough guide, smaller homes with one occupant often use less than the UK average. Your comparison results will be more accurate if you can provide a recent annual estimate.
Can I switch now, or should I wait for 2026?
Many households can benefit from reviewing tariffs now rather than waiting. If you switch, consider tariff length, exit fees, and whether you prefer price certainty. Use the comparison form to see what’s available for your postcode.
Why use EnergyPlus for a whole-of-market comparison?
Tariffs matched to your usage
We focus on total annual cost and the standing charge/unit rate mix that suits how your household uses energy.
Whole-of-market approach
Compare options across the market rather than relying on a single supplier’s offer.
UK-focused support
Get help understanding tariff details like exit fees, fixed terms, and regional pricing so you can switch with confidence.
What real households say
“The comparison made it clear how much we were paying in standing charges. Switching gave us a better balance for our low usage.”
“We’re a bigger household, so unit rates matter. EnergyPlus helped us find a tariff that made sense for our annual kWh.”
“Simple form, quick options, and the guidance on exit fees was useful. We switched without any hassle.”
Ready to see whether you could save?
Compare whole-of-market home energy tariffs based on your postcode and details. If standing charge reform changes the balance in 2026, you’ll already know the deal types that work for your household.
No obligation. For UK domestic customers. Switching availability depends on your current supplier and meter setup.
Quick checklist before you compare
- Have your postcode ready
- Optional: annual kWh from your bill
- Know if you have Economy 7 or a smart meter
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