What are standing charges on UK energy bills?

A standing charge is a fixed daily amount you pay for having an electricity or gas supply, regardless of how much you use. It helps cover network costs, metering, and other fixed costs included in the price cap.

Why have standing charges increased in recent years?

Standing charges have risen as more fixed costs are recovered through the daily charge, including network and policy costs, supplier operating costs, and items such as bad debt and system balancing. How these costs are split between unit rates and standing charges is influenced by Ofgem’s price cap methodology.

If standing charges fall, will unit rates go up?

Potentially, yes. If Ofgem reduces the portion of costs recovered via the standing charge, those costs may be shifted into the per-kWh unit rate instead. The overall bill impact depends on your usage: low users often benefit more from lower standing charges, while higher users may see less benefit if unit rates rise.

Who benefits most from lower standing charges?

Typically, households with lower energy consumption (for example, small households, flats, or people who are out of the home a lot) can benefit most from lower standing charges. High-usage households may benefit less if costs move into unit rates.

Can I avoid paying standing charges entirely?

Most domestic gas and electricity tariffs include a standing charge. Some tariffs may advertise a zero standing charge, but they often have higher unit rates or specific eligibility criteria. Always compare the total annual cost based on your usage.

How can I reduce my energy bill if standing charges stay high?

You can often cut costs by comparing tariffs, reviewing whether a fixed or variable tariff suits you, improving home efficiency, and checking eligibility for support schemes. You can also review your payment method and meter type to ensure you’re on the best available option for your household.

What should I do next if I’m worried about energy costs?

Check your current unit rates and standing charges, estimate your annual usage, then compare your options. If you want to see whether you could save, you can compare energy tariffs at https://www.energyplus.co.uk/ and review our latest updates in the News section at https://www.energyplus.co.uk/news/.

Will Ofgem cut standing charges in 2026 (UK)?

Q: Will Ofgem cut standing charges in 2026?

Ofgem has not confirmed a 2026 standing charge cut. Standing charges are set under the price cap methodology and can change if Ofgem consults on and implements reforms. For the latest decision, check official Ofgem announcements and your supplier’s tariff details.

What’s realistically on the table, what could change (and what probably won’t), and how to reduce the impact of standing charges in the meantime.

Clear, UK-specific explanation of how standing charges are set and why they vary
Two realistic scenarios with estimated numbers (so you can sanity-check your own bills)
Practical steps: tariff choices, payment method, meter setup and bill checks

Compare energy deals for your home Read the key takeaways first

Estimates and policy options can change. We explain assumptions and link to official UK sources below.

Fast answer: will Ofgem cut standing charges in 2026?

A cut is possible in 2026, but it’s not guaranteed and it may not look like a simple “everyone pays less”. Ofgem can change how certain costs are recovered (standing charge vs unit rate), and it can approve market-wide changes—however standing charges cover a bundle of costs that still need to be paid for in some way.

Important: Even if standing charges reduce, unit rates could rise to compensate. The “best” outcome for you depends on your usage (low vs high), your region, and your meter/tariff setup.

Key takeaways (UK)

Standing charges vary by region and meter type, and can differ for electricity vs gas.
They help fund network costs and other fixed costs that don’t change much with usage.
Ofgem sets the rules for the price cap, but suppliers set their own tariffs under those rules.
Low-use households usually feel standing charges most; high-use households feel unit rates most.
You can still reduce your bill by choosing the right tariff, checking payment method, and fixing billing issues.

What to do right now

Find your current standing charges (p/day) for gas and electricity on your latest bill.
Note your unit rates and whether you’re on single-rate or Economy 7.
Compare whole-of-market tariffs (including exit fees and eligibility).
Check you’re on Direct Debit (if suitable) and that your meter details are correct.

Two realistic 2026 scenarios (estimated)

These are illustrative to show how shifting costs between standing charges and unit rates could affect different households. They are not predictions and don’t represent any official proposal.

Scenario A: “Lower standing charge, slightly higher unit rate”

Assumption: Electric standing charge falls by 10p/day, unit rate rises by ~1.0p/kWh to recover costs.
Low-use home example: 1,600 kWh/year electricity: saves ~£36.50 on standing charge, pays ~£16 extra on units ? ~£20.50/year lower.
Higher-use home example: 4,200 kWh/year electricity: saves ~£36.50, pays ~£42 extra ? ~£5.50/year higher.

Scenario B: “Bigger cut to standing charge, bigger unit shift”

Assumption: Electric standing charge falls by 20p/day, unit rate rises by ~2.0p/kWh.
Low-use home example: 1,600 kWh/year: saves ~£73.00, pays ~£32 extra ? ~£41/year lower.
Higher-use home example: 4,200 kWh/year: saves ~£73.00, pays ~£84 extra ? ~£11/year higher.

Numbers use simple maths (365 days; usage × unit change). Real tariffs differ by region, meter type, and whether gas is included. See methodology for limitations.

What standing charges are (and why they’re hard to “just remove”)

A standing charge is the daily fixed amount you pay to have a gas or electricity supply. You pay it even if you use zero energy on a given day. In the UK, standing charges commonly fund costs that don’t scale neatly with how much energy you use.

What may be included

Network costs (maintaining local and national grids)
Metering and billing costs
Government and industry charges (varies over time)
Supplier operating costs and bad debt (within cap allowances)

Why it varies across the UK

Region: distribution networks differ by area
Fuel: gas vs electricity have different costs
Meter type: standard vs Economy 7; smart meters can still be on either
Payment method: Direct Debit vs prepayment can price differently

Ofgem vs suppliers: Ofgem sets the methodology for the energy price cap. Suppliers can price below (or sometimes above, depending on the type of tariff) but cap rules influence typical standing charge levels on default tariffs.

Compare tariffs and reduce the impact of standing charges

If standing charges stay high into 2026, the biggest controllable lever for most households is still choosing the right tariff for your usage and making sure you’re billed correctly. Use the form to get a whole-of-market comparison and see options side-by-side (including standing charge, unit rate, and key terms).

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By submitting, you’re asking EnergyPlus to find suitable tariffs. Terms, eligibility and availability vary by supplier.

Quick ways to cut the sting (even if standing charges don’t fall)

1) Match tariff type to your usage

If you use very little energy, a tariff with a slightly higher unit rate but lower standing charge can work out better. If you use a lot, unit rate usually dominates.

2) Check meter setup (single-rate vs Economy 7)

Economy 7 can be good for storage heaters or EV charging overnight, but it can be poor value if you don’t shift usage to off-peak. Ask your supplier about switching registers/tariff if needed.

3) Make sure you’re billed correctly

Misreads, wrong meter serial numbers, or incorrect registers can inflate bills. If you suspect an issue, gather photos of your meter and contact your supplier.

4) Consider payment method and support eligibility

Direct Debit tariffs can price differently from prepayment. If you’re struggling, check support routes and speak to your supplier early.

Tenant? You can usually switch supplier if you pay the bills, but check your tenancy agreement for any restrictions on meter access and keep your landlord informed where needed.

What changes in 2026 could look like (and what it means for you)

Because standing charges are part of how fixed costs are recovered, “cutting” them often means rebalancing charges elsewhere. The table below shows common approaches and who they typically help.

Potential approach	What changes on bills	Who it may suit	Key caveat
Rebalance: lower standing charge, higher unit rate	Lower p/day, higher p/kWh	Lower-use households; empty properties; small flats	High users could pay more overall
Introduce/expand “zero standing charge” style tariffs	No daily charge, but higher unit rates	Very low usage; second homes (where available)	Availability and terms vary; can be poor value for normal usage
Targeted support via benefits/eligibility routes	Discounts/credits rather than changing tariff structure	Eligible vulnerable households	Not everyone qualifies; may be time-limited
Changes to network charging over time	Could affect both standing charge and unit rates by region	Depends on region and usage profile	Not a quick fix; complex and consultative

Decision checklist: likely to benefit if…

Your usage is low (e.g., small flat, often away)
You’re all-electric but use little (or have very efficient heating)
You keep seeing the standing charge as a large share of your bill
You can switch to a tariff with lower standing charge without a punishing unit rate

May not benefit (or could pay more) if…

You’re a high electricity user (large household, EV charging, electric heating)
You can’t shift consumption and would be hit by higher unit rates
You’re on a fixed tariff with exit fees and switching early isn’t worth it
You’re on Economy 7 but most use is on the day rate

Tip: When you compare, don’t look at standing charge alone. Use your annual kWh (or a best estimate) and calculate total annual cost (standing charge × 365 + unit rate × usage).

Costs, exclusions and common pitfalls (UK)

Standing charge conversations can hide a few gotchas. These are the issues we see most often when people try to reduce costs.

Exit fees on fixed tariffs

If you’re on a fixed deal, check whether leaving early triggers exit fees. Sometimes waiting a few weeks/months can be cheaper than switching immediately.

Direct Debit vs prepayment pricing

Prices can differ by payment method. If you’re on prepayment, switching options may be narrower—and credit checks may apply for some payment methods.

Economy 7 mismatch

Economy 7 can be costly if you don’t use enough off-peak. Before switching to (or from) E7, check your day/night split and your heating/hot water setup.

Billing errors to watch for

Estimated reads that don’t match your actual meter
Wrong meter serial number on the bill
Two registers billed incorrectly (common with Economy 7)
Incorrect address/MPAN/MPRN details causing delays or misbilling

“Zero standing charge” marketing

If a tariff advertises no standing charge, check the unit rates carefully and ask:

Are unit rates substantially higher?
Is there a minimum usage or other condition?
Is it available for your payment method and meter type?

If you’re in debt or struggling: contact your supplier as early as possible. Citizens Advice explains help available and steps to take, including if you’re at risk of disconnection: Citizens Advice energy guidance.

FAQs

1) Can Ofgem cut standing charges directly?

Ofgem can change how costs are recovered in the price cap (including the balance between standing charges and unit rates) and can consult on reforms. Suppliers still set their own tariffs, but the cap methodology strongly influences typical default tariff pricing.

2) If standing charges go down, will my bill definitely go down?

Not necessarily. If costs shift into unit rates, low-use households may pay less, while high-use households may pay the same or more. Always compare on estimated annual cost for your kWh usage.

3) Why are standing charges different where I live?

A big driver is regional distribution network costs. Electricity distribution regions and gas networks have different underlying charges. Your meter type and payment method can also affect the standing charge shown on your tariff.

4) Do smart meters reduce standing charges?

Not automatically. A smart meter can improve billing accuracy and make it easier to use smart/time-of-use tariffs where available, but it doesn’t guarantee a lower standing charge. Your tariff and region matter more.

5) Are there UK tariffs with no standing charge?

Some suppliers may offer tariffs marketed as “no standing charge”, but they often come with higher unit rates and specific terms. Availability can depend on payment method, meter type, and region. Check the full tariff information and compare total estimated annual cost.

6) I’m on prepayment—can I switch and will standing charges be different?

You can often switch on prepayment, but tariff choice may be more limited and pricing can differ. If you’re in debt, your ability to switch may depend on the supplier and the type/level of debt.

7) Is the standing charge the same for gas and electricity?

No—gas and electricity standing charges are set separately and can differ significantly. You’ll see two standing charges on dual fuel (one for gas, one for electricity) plus different unit rates for each.

8) Where can I see my exact standing charge?

Check your latest bill, your online account tariff page, or your supplier’s tariff information label. It’s shown in pence per day (p/day). If you’re comparing, note both standing charge and unit rate(s).

If you want a quick answer for your home: your standing charge impact depends on your annual kWh. Use the comparison form above and we’ll show the cost breakdown across available tariffs.

Trust, methodology and sources

Editorial trust signals

Written by: EnergyPlus Editorial Team
Reviewed by: Energy Specialist
Last updated: February 2026

How we assess “will it be cut?”

We track Ofgem consultations and updates to cap methodology and default tariff guidance.
We assume that if standing charges are reduced, costs are likely to be recovered elsewhere (often via unit rates).
We treat outcomes as scenario planning, not a forecast, because policy decisions can shift.

Scenario maths (assumptions & limitations)

Electric-only illustration: scenarios model electricity standing charge changes and a compensating unit-rate change. Gas is not modelled in the example numbers.
Simple arithmetic: annual standing charge impact = change (in £/day) × 365; unit impact = change (in £/kWh) × annual kWh.
No VAT/tariff nuance: real bills include VAT and can include multiple registers (e.g., Economy 7). Some tariffs may bundle discounts or have different structures.
Regional variation: your actual standing charge and unit rate depend on your region, payment method, meter type and supplier—so use these examples to understand direction, not to estimate your exact bill.

Sources (UK)

We link to official sources for policy and consumer rights. Supplier pricing and tariff availability can change quickly; always confirm rates and fees before switching.

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Updated on 26 Feb 2026