Ofgem standing charge split tariff in the UK: what it means & compare options
If you’ve seen headlines about Ofgem exploring a standing charge split tariff, you’re not alone. Use EnergyPlus to compare whole-of-market home energy deals and find tariffs that fit how you use energy—without guesswork.
- Understand what a split tariff could look like (and what it is not)
- See how standing charges work today under Ofgem price cap rules
- Compare tariffs based on your usage and postcode
- Switch online in minutes with our quick form
EnergyPlus is a UK comparison service for home energy. Availability varies by region and meter type. We’ll show options based on the details you provide.
Compare energy deals while Ofgem reviews standing charges
Ofgem has been looking at options to make bills fairer—one idea discussed is a standing charge split tariff. Whether or not any change is introduced, you can still reduce your costs now by comparing tariffs based on your current usage, meter type and postcode.
Good to know: Standing charges and unit rates vary by region and payment method. The “best” tariff depends on how much energy you actually use—especially if you’re a low user, live alone, or are away from home often.
What you’ll need (takes 2–3 minutes)
- Your postcode (to show local standing charges and rates)
- Whether you have gas, electricity, or both
- Approximate usage (or last bill—optional but helpful)
- Your payment preference (monthly Direct Debit, prepay, etc.)
Prefer to understand the policy first? Jump to what a split tariff is or how standing charges work.
If your main concern is the standing charge, focus on comparing the total annual cost for your usage—not just the headline standing charge. We’ll show you options clearly so you can decide.
What is an Ofgem “standing charge split tariff”?
In simple terms, a standing charge split tariff is an idea where fixed costs currently recovered through the standing charge could be separated out or offered in an alternative way—so customers can choose how those costs are applied. It’s often discussed as a response to concerns that high standing charges can disproportionately affect low energy users.
What it could mean
- More than one tariff structure for the same supply (e.g. different ways to recover fixed network costs)
- Potentially lower standing charge on one option, with costs recovered elsewhere
- More choice for customers with different usage patterns
What it doesn’t guarantee
- That bills will fall for everyone (costs could shift between standing charge and unit rate)
- That you’ll pay “nothing” when you use no energy
- That it applies to every meter type or every supplier immediately
If you’re comparing now, the most practical approach is to assess deals by total cost for your likely annual usage, while keeping an eye on the standing charge and unit rate split. Use the form in Compare & get quotes to see options available in your area.
Important: Regulatory proposals can change. This page explains the concept and how to shop smartly today, rather than providing legal or regulatory advice.
Who could benefit from a split standing charge tariff (and who might not)?
Standing charges are a daily fixed cost. When you use less energy, that fixed cost becomes a larger share of your bill. A split-tariff approach is often talked about in the context of improving fairness for low-use households—but the trade-off can be higher unit rates on some options.
Lower users
People living alone, small flats, or those away often may prefer structures that reduce fixed daily costs—if unit rates remain competitive for their usage.
Higher users
Larger households, all-electric homes, and homes with EV charging or electric heating can be more sensitive to unit rates. A lower standing charge may not offset higher per-kWh costs.
Prepay & vulnerable customers
Any changes need to work for prepayment meters and customers who need predictability. Comparing total costs and eligibility is essential.
The key is that there’s rarely a “universally best” standing charge. The best value is the tariff that gives you the lowest annual cost for your consumption, with terms you’re comfortable with (fixed vs variable, exit fees, smart meter requirements, and so on).
Standing charges in the UK explained (home energy)
A standing charge is a set daily amount you pay for being connected to the gas or electricity network. It’s charged regardless of usage, and you typically pay it for each fuel you have (electricity and gas).
What the standing charge can cover
- Network costs (pipes, wires, local distribution)
- Metering and administration costs
- Supplier operating costs and certain policy costs (varies by tariff)
Why it differs by region
Standing charges can vary based on where you live, because network costs vary across Great Britain. Your meter type and payment method can also affect available tariffs and prices.
Standing charge vs unit rate: what to compare
If split tariffs become available, you’ll likely see more than one way to balance these components. That’s why EnergyPlus focuses on the figure that matters most: what you’ll pay over a year for your usage.
How to compare tariffs if you’re worried about standing charges
If your goal is to reduce your bill, focusing on the standing charge alone can be misleading. Use this quick process to compare tariffs sensibly—especially if split-tariff ideas become more common.
- Estimate your annual usage (from bills, your in-home display, or an estimate if you’ve just moved).
- Compare total annual cost, then review the mix of standing charge and unit rate.
- Check tariff type: fixed vs variable, any exit fees, and how long the fix lasts.
- Confirm meter compatibility: standard, Economy 7, smart meter, or prepayment.
- Switch with a clear start date and keep a photo of your meter readings on the day.
Common mistakes to avoid
- Choosing the lowest standing charge but overlooking a much higher unit rate
- Comparing electricity only when you also pay a separate gas standing charge
- Ignoring Economy 7 / multi-rate timings (night vs day use)
- Not checking if a tariff requires a smart meter
Helpful bill terms
- p/day: daily standing charge
- p/kWh: unit rate per kWh used
- Estimated annual cost: headline comparison figure (check what assumptions it uses)
- Exit fee: cost to leave early on some fixed tariffs
Ready to compare? Go back to Get personalised quotes and we’ll show deals available where you live.
Regional and household factors that affect standing charges
Because standing charges vary across regions, two households with identical usage can see different totals. When comparing, keep these factors in mind:
Where you live
Network cost differences mean standing charges can be higher or lower depending on your electricity distribution region and gas region.
Your meter & tariff type
Standard vs Economy 7/multi-rate, smart vs traditional meters, and prepayment can all affect which tariffs you can access.
Payment method
Monthly Direct Debit tariffs can differ from pay-on-receipt and prepayment. Comparing with the right method gives a fair result.
If you’ve just moved home
You can still compare tariffs even without a full year of bills. Use an estimate based on property size and occupancy, and update your supplier once you have readings. Start by entering your postcode in the comparison form.
FAQs: Ofgem standing charge split tariff UK
Is Ofgem removing standing charges?
Standing charges are part of how fixed costs are recovered. A “split tariff” idea is typically about offering alternative structures—so customers may have more choice—but it doesn’t automatically mean standing charges disappear.
Would a split tariff make bills cheaper?
It depends on your usage. If fixed costs are shifted from the standing charge into unit rates, low users might benefit while higher users could pay more. That’s why comparing total annual cost is essential.
Do I pay two standing charges for dual fuel?
Usually, yes—one for electricity and one for gas—because they’re separate supplies. When comparing, always check the combined total.
Can I switch if I’m on a prepayment meter?
Often yes, but available tariffs can be different. Enter your details in the form and we’ll show tariffs that match your payment method where possible.
Do standing charges apply if I use no energy?
Typically yes, because the charge is for being connected and supplied. If you’re trying to reduce the impact, compare tariffs based on low usage scenarios and the total annual figure.
Is the price cap the same as a tariff?
No. The Ofgem price cap is a limit on unit rates and standing charges for certain default tariffs. Suppliers can still offer fixed deals and other tariffs within rules. Comparing helps you see what’s available now.
Trust & social proof
People use EnergyPlus to cut through confusing tariff structures and compare based on what matters: their home, their usage, their total cost.
“I was focused on the standing charge, but the comparison showed a tariff with a slightly higher daily charge and a much lower unit rate—my annual total was cheaper.”
— Homeowner, Manchester
“The form was quick and the results were easy to understand. I finally knew what I’d pay over the year.”
— Tenant, Bristol
“I wanted to see options for low usage. The comparison helped me avoid picking a deal just because the standing charge looked low.”
— Flat owner, Glasgow
Why compare with EnergyPlus?
- Whole-of-market comparison approach for home energy
- See deals matched to postcode, meter and payment method
- Clear focus on total annual cost (not just one price component)
Compare tariffs with standing charges in mind
Whether Ofgem introduces a standing charge split tariff or not, you can still make an informed choice today. Compare home energy deals based on your usage and see what you’d pay over a year.
Switching is for UK domestic customers only on this page. Results depend on eligibility, meter type and regional pricing.
Quick checklist
- Have your postcode ready
- Know your payment method
- Optional: last bill for usage
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