Will Ofgem ban energy standing charges in the UK?
Get the latest on what Ofgem is considering, what a standing charge ban would actually mean for your bills, and how to cut costs now by comparing whole-of-market home energy deals with EnergyPlus.co.uk.
- Clear explanation of standing charges, price cap rules and current proposals
- What might change for low users, prepay and vulnerable households
- Compare home energy tariffs (whole-of-market) and switch in minutes
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Check if you could pay less today
Whether Ofgem changes standing charges or not, your total bill still depends on your current tariff, usage and payment method. EnergyPlus.co.uk compares whole-of-market home energy tariffs to help you find a deal that suits how you actually use gas and electricity.
If you’re worried about standing charges, we’ll show you tariffs where the overall cost may work better for your household—without the guesswork.
Tip: A “ban” on standing charges doesn’t automatically mean cheaper bills. In most proposals, costs would likely move into the unit rate (the price per kWh). That can help some households and increase costs for others. Use a comparison based on your usage.
What you’ll need
- Your postcode (to match regional network charges)
- Rough annual usage (kWh) or a recent bill (helpful, not essential)
- Meter type (credit, prepay, smart meter if known)
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Why the standing charge debate matters
It’s a fixed daily cost
Standing charges are applied per day, even if you use no energy. If you’re a low user, away from home, or on a tight budget, that fixed cost can feel disproportionate.
Regional differences can be significant
Network costs vary by area. That means electricity standing charges and unit rates can differ depending on where you live—even under the price cap.
A ban may shift costs elsewhere
If suppliers still need to recover fixed costs, removing the standing charge can push those costs into the unit rate. Some households save; others pay more.
Will Ofgem ban standing charges?
At the moment, there is no confirmed UK-wide ban on energy standing charges. Ofgem has explored options to reform standing charges, including alternatives such as zero-standing-charge tariffs where costs move into unit rates, and other approaches designed to improve fairness and affordability.
Because standing charges help recover fixed costs (like maintaining local networks and metering), removing them entirely is complicated. Any change would likely involve consultation, supplier readiness, and rules under the price cap framework. The practical outcome for households would depend on how unit rates are adjusted and whether there are protections for vulnerable consumers.
What to do now: If standing charges are a big concern for you, focus on what you can control—your tariff and how it matches your usage. Use the comparison form to see options for your postcode and meter type.
What is an energy standing charge?
A standing charge is a daily fixed fee on your gas and/or electricity bill. It’s usually shown as “pence per day” and covers costs that don’t change with usage, such as:
- Maintaining the wires and pipes that deliver energy to homes
- Metering and administration
- Some policy and industry costs (depending on tariff structure)
“Ban” vs “zero standing charge”: what’s the difference?
Who could gain (and who could lose) if standing charges fall?
If standing charges are reduced or removed, suppliers still need to cover fixed costs. In many realistic scenarios, the unit rate rises to compensate. That means the impact depends on how much energy you use.
Households that may benefit
- Low-usage homes (e.g. single occupants, very efficient homes)
- Second homes with minimal energy use for parts of the year
- Some electric-only households with low overall consumption
- Homes that can shift usage and keep kWh low
Households that may pay more
- High-usage homes (larger families, less insulated properties)
- Homes with electric heating and higher winter consumption
- People who work from home full-time and use more energy in the day
- Customers unable to reduce usage due to health needs
The key point: Standing charge reforms are about how bills are structured, not magically removing costs from the system. A tailored tariff comparison is the safest way to understand your likely outcome.
How to reduce the impact of standing charges (without waiting for Ofgem)
You can’t usually remove standing charges on standard tariffs, but you can reduce how much they affect your total bill by making sure you’re on a tariff that fits your usage and by avoiding common billing issues.
- Compare whole-of-market tariffs using your postcode. Rates vary by region and meter type. Start here: compare home energy deals.
- Check your meter type. Prepayment and credit meters can price differently. If you’ve moved to smart or credit, confirm your supplier has updated your account correctly.
- Make sure you’re billed accurately. Estimated bills can be wrong for months. Submit regular readings (or ensure your smart meter is communicating).
- Review payment method. Direct Debit tariffs can sometimes be cheaper than pay-on-receipt, depending on supplier pricing.
- Consider usage shifting. If you’re on a time-of-use tariff (where available), moving high-use activities off-peak can lower total costs even if the standing charge stays the same.
Common mistakes to avoid
Comparing unit rates only
A slightly higher standing charge can be outweighed by a lower unit rate—especially for average or high users.
Ignoring your usage level
The “best” tariff depends on consumption. Use annual kWh if you can—your bill usually shows it.
Switching without checking exit fees
If you’re on a fixed deal, you may have an exit fee. Weigh it against the savings over the remaining term.
How standing charges show up on your bill
Most domestic bills split costs into a standing charge and a unit rate. Here’s a simple way to think about it:
Good to know: The Ofgem price cap limits what suppliers can charge for typical customers on default tariffs, but it doesn’t guarantee you’re on the cheapest option for your household.
FAQs: standing charges and Ofgem
Can I refuse to pay the standing charge?
On most domestic tariffs, the standing charge is part of the agreed pricing. If you don’t pay, you can build up debt. If you’re struggling, speak to your supplier about support options and compare tariffs using EnergyPlus.co.uk to see if a different deal reduces your overall cost.
If Ofgem removes standing charges, will my bill be lower?
Not necessarily. Fixed costs may be moved into the unit rate. Low users might pay less; average and high users might pay more. The best way to judge is to compare tariffs against your usage and postcode.
Why are standing charges higher than they used to be?
Standing charges can rise when more industry costs are recovered through fixed charges rather than unit rates, and when network and system costs change. Prices also vary by region and meter type.
Do I pay a standing charge if I’m on a prepayment meter?
Prepayment tariffs commonly include standing charges too. How it’s collected can differ (for example, deducted from credit). If you’re on prepay and concerned about costs, compare options in your area via our form.
Do standing charges apply in Northern Ireland?
Energy regulation differs across the UK. This page focuses on Great Britain (England, Scotland and Wales) where Ofgem sets the regulatory framework. If you’re in Northern Ireland, tariffs and regulation work differently.
What’s the fastest way to know if I’d be better off with different rates?
Run a whole-of-market comparison using your postcode and contact details. We’ll help you review tariffs and switching options based on availability and your meter type. Start here: compare tariffs.
Why households use EnergyPlus.co.uk
Whole-of-market comparison
See a wider set of home energy options so you can focus on the annual cost, not just one headline rate.
Based on your postcode
Standing charges and unit rates vary by region. We match your comparison to where you live.
Clear next steps
If you find a better option, we’ll guide you through switching—without jargon.
“I was confused about standing charges. The comparison made it clear which tariff was actually cheaper for my usage.”
“Simple form, quick call back, and the options were explained in plain English.”
“I thought a zero standing charge tariff would be best, but the annual totals showed otherwise.”
Don’t wait for a standing charge ban to cut your bill
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