What is Ofgem’s standing charge review (2025)?

Ofgem’s standing charge review is a consultation looking at how standing charges are set and whether the way fixed daily costs are recovered from customers is fairer and more transparent. The review considers alternatives to the current approach and how changes could affect household energy bills.

What is a standing charge and what does it pay for?

A standing charge is the fixed amount you pay each day for electricity and/or gas, regardless of how much you use. It helps cover costs such as maintaining the energy network, metering, billing, customer service and other system-wide charges. The exact breakdown can vary over time and by region.

If standing charges are reduced, will my bill definitely go down?

Not necessarily. If less cost is collected through the standing charge, it may be moved into the unit rate (the price per kWh). Low-usage households may see lower bills if standing charges fall, while higher-usage households could see smaller savings or potentially higher costs depending on how the balance changes.

Who is most likely to benefit from changes to standing charges?

Households with lower energy use (for example, smaller homes, single-occupancy households, or people who are away often) may benefit more if fixed costs are reduced. Higher-usage homes may benefit more from lower unit rates instead, so the impact depends on your consumption and tariff structure.

Could standing charges be replaced completely?

Ofgem has discussed options that could reduce or reshape standing charges rather than guaranteeing they will be removed. Any change would need to ensure networks and essential services remain funded, and to consider fairness between different household types and payment methods.

When could the Ofgem standing charge review changes take effect?

Timescales depend on the outcome of the consultation and the implementation approach Ofgem chooses. If reforms are agreed, they may be introduced in stages and could align with wider price cap or regulatory updates. Check Ofgem updates for confirmed dates.

How can I lower my energy bill while the review is ongoing?

The quickest wins are usually: compare tariffs to check you’re not overpaying, understand your usage (kWh) and when you use energy, submit regular meter readings (or use a smart meter), and reduce consumption with simple efficiency steps (heating controls, draught-proofing, efficient lighting and appliances).

Can I switch tariff or supplier now if I’m worried about standing charges?

Yes. You can usually switch at any time, but check if your current tariff has exit fees or fixed-term conditions. If you want help choosing an option that fits your usage, you can review available tariffs and get support via https://www.energyplus.co.uk/.

What should I compare: standing charge, unit rate, or both?

Compare both. Your total cost depends on the standing charge (daily fixed cost) and the unit rate (pence per kWh). For low usage, a high standing charge can dominate the bill. For higher usage, the unit rate typically matters more. Use your annual kWh figures to estimate true yearly cost.

Where can I read the full article about the Ofgem standing charge review 2025?

You can read the full Energy Plus article here: https://www.energyplus.co.uk/news/ofgem-standing-charge-review-2025-cut-my-bill

Ofgem standing charge review 2025: cut your energy bill

Ofgem is reviewing standing charges in 2025. While the rules are evolving, you can still reduce what you pay by comparing whole-of-market tariffs and choosing the right setup for your home. Check what you could switch to in minutes with EnergyPlus.co.uk.

Whole-of-market comparison for UK homes (gas, electricity, or both)
See tariffs with lower daily charges, lower unit rates, or the best balance
Quick quote with no obligation to switch

Compare tariffs & cut my bill Learn about the 2025 review

Home energy only. Standing charges vary by region, meter type and tariff. We’ll show options available for your address.

Compare whole-of-market tariffs around standing charges

If the Ofgem standing charge review in 2025 changes how charges are set, that won’t automatically make your current tariff cheaper. What you can control today is which tariff you’re on and how well it matches your home’s usage.

EnergyPlus.co.uk compares tariffs for home energy and helps you identify deals that may suit:

Low users (standing charge matters more)
High users (unit rate matters more)
Electric-only homes and flats
Smart meter households considering time-of-use tariffs

Tip: Many people focus only on the unit rate. If your usage is low (e.g. small flat, away during the week, or efficient heating), a higher unit rate with a lower standing charge can sometimes cost less overall.

Get your personalised quote

Tell us a few details and we’ll show available tariffs for your address, including options that may reduce standing charges.

Why the standing charge review matters to your bill

Standing charges are paid every day

Even if you use very little energy, the daily standing charge still applies. For low usage households, it can be a big share of the total bill.

They vary by region and meter

Charges can differ across England, Scotland and Wales and by distribution region. Your meter type (including prepay) can also affect prices.

A change won’t fix a poor tariff fit

Even if the review leads to lower standing charges, a tariff with an uncompetitive unit rate could still be expensive. Comparing both is key.

What is a standing charge on energy bills?

A standing charge is the fixed daily amount you pay for your gas and/or electricity supply, regardless of how much energy you use. It typically covers things like maintaining the network, meter reading and administrative costs (exact cost components depend on how suppliers build tariffs and regulatory allowances).

Where you’ll see it

On your tariff information label / unit rates section
On bills as “standing charge” (p/day)
On prepayment meters as a daily deduction

Why it’s important

If you use less energy, the standing charge makes up a larger share of your bill
Comparing only unit rates can be misleading
It can be different for gas and electricity on the same account

Plain-English summary: Unit rate is what you pay per kWh. Standing charge is what you pay per day. Your total cost depends on both.

Ofgem standing charge review 2025: what to know

Ofgem (the UK’s energy regulator) has been looking at standing charges and how they’re structured. People often search “Ofgem standing charge review 2025 cut my bill” because they want to know whether the daily charge could go down — and what they can do now to reduce costs.

What the review can influence

How costs are recovered between standing charges and unit rates
Potential options suppliers can offer within regulatory rules
How changes might affect different household types (e.g. low use vs high use)

What it won’t do automatically

It won’t instantly move you onto the best value tariff for your home
It won’t remove the need to compare supplier pricing and contract terms
It won’t make every household better off in the same way (trade-offs may shift)

If you’re waiting for changes…

You can still take action today by checking tariffs that may better match your usage pattern.

Find your current unit rates and standing charges
Estimate your annual usage (or use last year’s bills)
Compare whole-of-market offers and weigh total annual cost

Run my comparison

Important: This page is general guidance, not regulatory advice. Tariff availability and pricing depend on your location, meter type and supplier.

How to cut your bill if standing charges change

Whether standing charges go up, go down, or are rebalanced against unit rates, the practical way to cut your bill is to make sure your tariff fits your household. Use the checklist below before you switch.

1) Check your usage type

Low usage? Standing charge has more impact. High usage? Unit rate dominates. The best tariff is about total annual cost, not one figure.

2) Compare by region & meter

Standing charges are regional. If you’ve moved, changed meter, or switched to smart, re-check your options for your new setup.

3) Watch exit fees & term length

If you’re in a fixed deal, you may have an exit fee. Sometimes it’s still worth switching—compare savings against fees.

Quick wins to try alongside switching

Submit regular readings (or ensure your smart meter is communicating)
Check your payment method (direct debit tariffs can differ)
Review your heating schedule and hot water timer
Reduce standby power and swap high-use bulbs to LEDs

Best practice for comparing

Use a like-for-like view of:

Standing charge (p/day)
Unit rate (p/kWh)
Estimated annual cost (based on your usage)
Tariff type (fixed vs variable)

Standing charge vs unit rate: how to judge value

A tariff can look “cheap” if it has a low unit rate but a higher standing charge (or vice versa). The fairest way to compare is to estimate the annual total for your home.

Household pattern	What usually matters more	What to look for when comparing
Low usage (small flat, away often)	Standing charge	Lower daily charge, and confirm unit rate isn’t excessively high
Average usage (typical family home)	Balance of both	Compare estimated annual cost and check fixed-term conditions
High usage (electric heating, EV charging, large home)	Unit rate	Lower p/kWh and consider time-of-use if you can shift usage off-peak

Simple calculation: Annual standing charge cost ˜ (standing charge per day) × 365. Then add (unit rate × annual kWh). Comparing both tariffs using the same usage estimate avoids surprises.

Common mistakes when trying to lower standing charges

Focusing on one number

A low standing charge can be offset by a higher unit rate (or the other way around). Always compare the estimated annual cost for your usage.

Forgetting regional variation

Energy prices can vary by distribution region. The same supplier can have different standing charges depending on your postcode.

Ignoring tariff terms

Check whether prices are fixed or variable, whether there are exit fees, and what happens after the initial term ends.

Comparing without meter details

Prepayment, Economy 7, and smart time-of-use setups can price differently. Use a comparison that reflects your actual meter type.

FAQs: Ofgem standing charge review 2025

Will the Ofgem standing charge review in 2025 reduce my bill?

It may lead to changes in how standing charges and unit rates are balanced, but it won’t automatically put you on the cheapest available tariff. The fastest way to try to reduce your bill is to compare tariffs for your postcode and focus on total annual cost.

Can I get a zero standing charge tariff?

Availability can be limited and terms can vary. If a tariff advertises a very low (or zero) standing charge, check the unit rate and any conditions carefully. Comparing the estimated annual cost is the safest approach.

Why is my standing charge higher than my friend’s?

Standing charges can differ by region (distribution area), meter type, payment method and tariff. Two households with different postcodes can legitimately see different daily charges even with the same supplier.

Does switching supplier change my standing charge straight away?

If you switch to a tariff with different rates, the new standing charge and unit rate apply from your supply start date (subject to your supplier’s billing cycle). Always confirm the rates shown in your quote and welcome pack.

I’m on a fixed tariff—should I wait until it ends?

Not always. If your current deal has an exit fee, compare the potential saving against the fee and the remaining term. If there’s no exit fee (or it’s small), switching sooner can sometimes cut costs.

Is this page about business energy?

No—this page is for UK home energy customers only. If you need business energy, you’ll need a business comparison service.

Why households use EnergyPlus.co.uk

Whole-of-market view

Compare available home energy tariffs in one place, including how standing charges and unit rates combine for your estimated annual cost.

Designed for real households

From electric-only flats to family homes—filter options that match your meter, region and fuel type.

Clear, practical guidance

We focus on what changes your bill: standing charge, unit rate, tariff type and contract terms—so you can decide with confidence.

Trust indicator: Switching is between you and the supplier. We help you compare available options and choose based on total cost and terms.

Ready to cut your bill?

Don’t wait for regulatory changes to land. Compare whole-of-market home energy tariffs now and see options that may reduce your standing charge or your total annual cost.

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EnergyPlus.co.uk is a comparison service for UK home energy. Tariff availability depends on address and meter type.

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Updated on 21 Dec 2025