Will Ofgem ban energy standing charges in the UK?
Get the latest on Ofgem’s standing charge review, what a ban would mean for your electricity and gas bills, and the practical steps you can take today to cut costs. Compare whole-of-market home energy deals with EnergyPlus and switch with confidence.
- Clear explanation of Ofgem’s current position (and what’s still being consulted on)
- How standing charges work in the UK and why they vary by region
- Best options if you want to reduce standing charges now (including “zero standing charge” style tariffs)
- Fast whole-of-market comparison for households
Information is general guidance for UK households and may change as Ofgem consultations progress. Prices and availability vary by supplier, meter type and region.
Compare whole-of-market home energy deals (including low standing charge options)
If you’re searching “Will Ofgem ban standing charges?” you’re probably paying more than you’d like just to stay connected. While regulatory change takes time, you can still take action now: compare tariffs that better match your usage and look for pricing structures that reduce the impact of daily charges.
Quick tip: Standing charges are paid every day, even if you use no energy. For low-usage homes, lowering the standing charge can matter as much as the unit rate.
What you’ll need (takes 2 minutes)
- Your postcode (to match regional network charges)
- Whether you have gas, electricity, or both
- Smart meter yes/no (if you know it)
- Rough usage (or we can estimate from household size)
Prefer to read first? Jump to what Ofgem is consulting on and ways to cut standing charges now.
Will Ofgem ban standing charges in the UK?
At the time of writing, Ofgem has not announced a confirmed ban on energy standing charges. What Ofgem has done is review how standing charges are set and whether households should have different options for how they pay fixed network and policy costs.
A ban is not the same as a reform
A full ban would remove the fixed daily charge entirely. More commonly discussed approaches involve changing how fixed costs are recovered (e.g. shifting some costs into unit rates or offering alternative tariff structures).
Ofgem considers trade-offs
If standing charges fall, unit rates can rise. That could help some low-usage homes but increase bills for higher-usage homes. Any change needs to balance fairness, affordability and network cost recovery.
You can still act now
Whatever happens next, you can compare tariffs today. Some suppliers offer structures with lower standing charges (often with higher unit rates), which can suit certain households.
What to watch: Ofgem updates, consultation outcomes, and supplier tariff changes. If you’re on a standard variable tariff, you may be paying more than necessary while waiting for reforms.
What is a standing charge (and why is it so high)?
A standing charge is a daily fixed amount you pay for gas and/or electricity. It helps cover costs such as maintaining the energy network, operating metering and billing systems, and other regulated charges. You pay it regardless of usage.
| Cost element | Often recovered via standing charge | Why it varies | What you can do |
|---|---|---|---|
| Network costs (wires/pipes) | Yes, commonly | Regional distribution charges differ by area | Compare deals by postcode; consider tariff structure |
| Metering, billing & admin | Often | Supplier cost models vary | Switch supplier if better value for your usage |
| Policy & system charges | Sometimes | Regulated changes over time | Keep an eye on tariff changes at renewal |
| Energy usage (unit rate) | No (separate) | Wholesale costs and supplier pricing | Reduce kWh, choose tariff that fits your patterns |
Why your neighbour’s standing charge can differ
Standing charges can vary by region, meter type (including prepayment), and the tariff you’re on. That’s why a postcode-based comparison is essential.
Standing charge vs unit rate
Some tariffs trade a lower standing charge for a higher unit rate. Whether that saves you money depends on your annual usage.
How to reduce the impact of standing charges now
Even if Ofgem doesn’t ban standing charges outright, you can still reduce what you pay overall. The key is to choose the right pricing structure for your household, not just chase the lowest headline unit rate.
- Check your current tariff and renewal date. If you’re on a standard variable tariff, comparing now can reveal cheaper fixed deals or alternative structures.
- Estimate annual usage (kWh) for gas and electricity. Standing-charge-friendly options usually work best for lower usage; higher usage can favour lower unit rates.
- Compare “total annual cost”, not just daily charges. A lower standing charge can be offset by a higher unit rate.
- Consider payment method and meter type. Prepayment and credit meters can have different price caps and charges.
- Look at exit fees and contract length. A short fix can be useful if you want flexibility while waiting for regulatory changes.
- Switch safely. Use a whole-of-market comparison and keep your current supplier details handy.
Tip for low-usage homes: If your property is empty for periods (e.g. you travel often) or you’re in a small flat with low consumption, exploring lower standing charge tariffs may make the bill feel fairer — but always check the full annual estimate.
Ready to see what’s available for your area? Use the comparison form and we’ll match deals to your postcode.
Tariff options if standing charges change (or don’t)
Here’s how common tariff structures can affect households if standing charges are reduced, rebalanced, or stay broadly the same. The right choice depends on how much energy you use and how predictable you want your bills to be.
| Tariff type | Typical standing charge approach | Best for | Watch-outs |
|---|---|---|---|
| Standard Variable (SVT) | Set within the price cap (where applicable) | Short-term flexibility | Can be poor value vs fixes; prices can change |
| Fixed rate | Varies by deal; often stable for term | Budget certainty | Exit fees may apply; check standing charge details |
| Low / zero standing charge style | Lower daily charge, higher unit rate | Lower-usage households | Can cost more if you use lots of kWh |
| Time-of-use (smart meter) | Standing charge plus peak/off-peak rates | Households that can shift usage | Peak rates can be high; needs active management |
If standing charges are reduced
Unit rates may increase to recover fixed costs. High-usage homes should compare carefully to avoid paying more overall.
If standing charges stay similar
Switching remains the main lever: your supplier choice, payment method and contract length can materially change both unit rate and daily charge.
If Ofgem introduces options
We expect more “choice” tariffs that rebalance fixed vs variable costs. Your usage profile will matter more than ever.
Do standing charges differ across the UK?
Yes. Standing charges can vary because electricity distribution and gas network charges differ by region. This is why “lowest standing charge” headlines aren’t always meaningful unless they’re checked against your postcode and meter details.
What affects your standing charge
- Electricity distribution region (DNO area)
- Gas distribution zone (if you have mains gas)
- Meter type (credit, smart, prepayment)
- Payment method (e.g. Direct Debit vs pay on receipt)
- Supplier and tariff structure
What doesn’t usually change it
- Your home size on its own (it’s about usage and tariff)
- Your supplier’s customer service rating
- Whether you’re a homeowner or renting (though landlords may control meter access)
Best next step: Run a postcode comparison to see standing charges and unit rates for your exact region. Start your comparison.
Common mistakes when trying to avoid standing charges
1) Only looking at “pence per day”
You need the annual estimate. A lower standing charge can be outweighed by higher unit rates if you use more energy.
2) Ignoring meter and payment type
Your tariff options can change depending on whether you have a prepayment meter, smart meter, or pay by Direct Debit.
3) Waiting for policy change instead of switching
Ofgem processes take time. If you can save now, it’s often better to switch and reassess at the end of your fix.
Not sure where you fall? Use the form to compare based on your postcode and fuel type. We’ll show the standing charge and unit rate side-by-side so you can decide.
FAQs: Ofgem standing charge ban (UK)
What would happen if Ofgem removed standing charges?
If standing charges were removed, suppliers would still need to recover fixed costs. In practice, that often means those costs shift into the unit rate (p/kWh) or appear through alternative pricing structures.
That can benefit low-usage households and disadvantage high-usage households. Any change would likely come with guidance on fairness and consumer protection.
Can I get a tariff with no standing charge?
Some suppliers offer tariffs marketed as very low or “zero standing charge” (availability varies). These typically compensate with a higher unit rate. The best approach is to compare using your annual usage to see if it genuinely reduces your yearly bill.
Are standing charges capped in the UK?
For many households, Ofgem’s price cap limits the maximum charges on standard variable and default tariffs (where applicable). It does not guarantee you’re on the cheapest deal — it sets a ceiling, not a best price.
Do I still pay standing charges if I’m away and using no energy?
Yes. Standing charges are applied daily even if your usage is zero. If your home is empty for long periods, choosing a pricing structure with a lower standing charge may reduce wasted spend — but check the unit rate before switching.
Is switching safe while Ofgem is reviewing standing charges?
Switching is a normal part of the UK market. If you choose a fixed tariff, check any exit fees and contract length so you keep flexibility. You can also choose shorter fixes if you’re expecting the market to change.
If you want the shortest route to an answer for your home, compare deals by postcode and view standing charges alongside unit rates.
Trusted comparisons for UK households
EnergyPlus made it clear how the standing charge and unit rate worked together. I switched to a tariff that actually suits my low usage.
The comparison was quick and the options were easy to understand. I liked seeing the total annual estimate, not just headline rates.
I was waiting for news on standing charges. Switching now saved money immediately, and I can review again when my fix ends.
Why people use EnergyPlus
- Whole-of-market comparison focus for households
- Postcode-based results to reflect regional standing charge differences
- Side-by-side view of standing charges, unit rates and estimated annual cost
Don’t wait for a ban to cut your energy bill
Ofgem may reform standing charges, but you can reduce costs now by switching to a tariff that fits your usage. Compare whole-of-market home energy deals in minutes.
Already have a tariff in mind? You can still compare to check standing charges and total annual cost for your postcode.
What you’ll see in your results
- Standing charge (p/day) and unit rate (p/kWh)
- Estimated annual cost for your household
- Fix length and any exit fees (where applicable)
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