Will the Ofgem standing charge cap cut my bill?
A standing charge cap could help some households, but it won’t automatically reduce everyone’s energy costs. Use our whole-of-market comparison to see what you’d pay on today’s best available home energy deals.
- Understand how standing charges work (and who benefits most from any cap)
- Check whether switching now could beat waiting for rule changes
- Compare home energy tariffs across the market in minutes
EnergyPlus is a UK comparison service for home energy. Prices and availability vary by postcode and meter type; savings depend on your usage and current tariff.
Standing charge cap: could it reduce your bill?
Ofgem regulates the energy price cap for households on standard variable tariffs and many default tariffs. A separate idea often discussed is a cap on standing charges (the daily fixed amount you pay even if you use no energy). If standing charges are reduced, the change usually needs to be balanced elsewhere in the tariff structure.
That’s why the honest answer is: a standing charge cap may cut bills for some homes, but it can increase costs for others if unit rates rise to compensate. Your result depends on your usage, region, meter type (credit / prepayment / smart), and what you currently pay.
Best next step: compare whole-of-market home energy tariffs by postcode. If you can beat your current deal now, switching could deliver savings regardless of future policy changes.
What you’ll need to compare accurately
- Postcode (tariffs vary by region and network charges)
- Payment method (Direct Debit vs pay on receipt / prepayment)
- Usage in kWh (from bills, or we can estimate if you’re not sure)
- Meter type (single rate, Economy 7, smart meter)
Compare home energy deals
Get a personalised comparison using your postcode. We’ll show available tariffs and highlight options that could reduce your annual cost.
Tip: if your bill feels high even with low usage, your standing charge may be a bigger share of your costs—especially in smaller homes or if you’re out during the day.
What is an energy standing charge?
A standing charge is the fixed daily amount you pay for being connected to the gas and/or electricity networks. You pay it regardless of how much energy you use.
It contributes to costs such as:
- Network maintenance and upgrades
- Metering, billing and customer service
- Policy and operating costs included in regulated charges
Standing charge vs unit rate
Your bill is usually made up of:
- Standing charge (pence per day)
- Unit rate (pence per kWh used)
If standing charges fall, suppliers may increase unit rates (or reduce discounts) to recover costs. That’s why usage level matters.
What would an Ofgem standing charge cap actually do?
A standing charge cap would place a limit on how high the daily fixed charge can be. Depending on how it’s designed, it could apply to certain tariffs (for example, default tariffs) and vary by region and meter type, similar to how the wider price cap is set.
It may reduce fixed daily costs
Good news for low users and smaller households where standing charges make up a bigger share of the bill.
Unit rates could increase
If suppliers still need to recover costs, they may move more of the bill into the per-kWh price.
Your result depends on usage
High-usage homes could see smaller savings—or even pay more—if unit rates rise enough.
Practical takeaway: the best way to know what you’ll pay is to compare tariffs using your own usage. If you don’t have kWh figures, start with a postcode comparison and we can estimate.
Who is most likely to benefit from a standing charge cap?
If standing charges are reduced and unit rates increase, the winners are usually households that use less energy overall. Here are common examples.
Lower-usage households
- 1–2 bedroom flats and small homes
- Homes where occupants are out most of the day
- Households that heat efficiently or use alternative heating
If your usage is low, today’s standing charge can feel like it “dominates” the bill—so any cap could make a noticeable difference.
Seasonal or part-time occupancy
- Homes where the occupier travels often
- People living between two addresses
- Households with long periods of minimal energy use
When kWh usage drops, the daily charge stays—so reducing it can be particularly helpful.
Some prepayment customers
Standing charges and rates can differ by meter and payment method. A cap could be designed to protect specific groups, but the impact depends on the final rules and supplier pricing.
Who may not benefit
Larger families and high-usage homes often pay more in unit charges. If unit rates rise to offset a lower standing charge, overall bills could stay similar or increase.
Quick check: would a lower standing charge help you?
You can get a feel for the impact by looking at how much you pay in standing charges over a year.
Simple annual standing charge estimate
- Find your electricity standing charge (p/day) on a recent bill or in your online account.
- Multiply by 365 to get the annual amount.
- Do the same for gas if you have it.
If your annual standing charges are a large portion of your total spend, a cap could help—but only if unit rates don’t rise enough to cancel it out.
A more reliable way: compare tariffs
Even small differences in unit rates can outweigh a standing charge change over a year. The fastest way to check your real-world outcome is a postcode comparison.
- See current unit rates and standing charges side-by-side
- Sort by estimated annual cost for your household
- Spot tariffs with lower fixed charges and competitive unit rates
How standing charges vary across the UK
Standing charges aren’t identical everywhere. Your region, meter type and payment method can affect what you pay. This is one reason why “headline” changes can feel different from one household to another.
| Factor | What changes | Why it matters to your bill |
|---|---|---|
| Region | Network charges and default cap levels can differ | Two identical homes can pay different standing charges in different areas |
| Meter type | Single rate vs Economy 7 / multi-rate; smart vs traditional | Off-peak rates can be cheaper, but standing charges and day rates vary |
| Payment method | Direct Debit, pay on receipt, prepayment | Tariffs can be priced differently; comparisons must match how you pay |
| Tariff type | Fixed vs variable; discounts and incentives | Some fixed tariffs may beat default pricing even if standing charges are similar |
If you’re unsure what meter you have, your bill will usually state whether it’s single rate or Economy 7. You can also start a comparison by postcode and refine the results once you’ve checked your meter details.
Common misconceptions (and what to do instead)
“If standing charges go down, my bill must go down.”
Not necessarily. If per-kWh rates increase, your total bill could stay the same or rise—especially if you use more energy.
“Waiting for changes is always best.”
If you can reduce your annual cost by switching now, delaying could mean overpaying in the meantime. Comparing doesn’t commit you to anything.
“My bill is high so it must be the standing charge.”
Standing charges can be significant, but usage, insulation, appliance efficiency, and heating patterns often have a bigger impact. A comparison helps you see your tariff structure clearly.
“All suppliers charge the same under the cap.”
Ofgem’s cap relates to default tariffs and sets a maximum, not a single price. Fixed deals can still vary and may offer better value depending on your usage.
FAQs: Ofgem standing charge cap and your energy bill
Does the Ofgem price cap include standing charges?
Yes. Under the wider price cap methodology, both unit rates and standing charges are controlled on capped default tariffs. A separate “standing charge cap” discussion is about limiting the fixed daily element more directly, potentially changing how costs are recovered.
If standing charges are capped, will suppliers put prices up elsewhere?
They may. If the overall allowed revenue doesn’t change, costs can shift from the daily charge into the per-kWh unit rate. That’s why low users are more likely to benefit than high users.
Can I avoid standing charges completely?
Most standard domestic tariffs include standing charges. Some specialist tariffs in the past reduced or removed standing charges but typically had higher unit rates, and availability can be limited. The realistic approach is to find the best overall annual cost for your usage.
Will a standing charge cap apply to fixed tariffs?
It depends on the rules and which tariffs are included. Fixed tariffs may not be affected the same way as default tariffs. Either way, fixed deals can still differ in standing charges and unit rates—so comparison remains the most reliable way to decide.
Is switching safe if there are policy changes coming?
Switching is a common way to manage energy costs, but always check tariff terms. If you choose a fixed tariff, you may have exit fees; variable tariffs are usually more flexible. If you’re unsure, start by comparing options and reviewing the details before committing.
I’m on a prepayment meter—does this change anything?
Prepayment tariffs can be priced differently and can have different standing charge levels. The most accurate approach is to compare using your postcode and selecting your meter/payment type so you see like-for-like options available for your home.
Want a clear answer for your household? Run a whole-of-market comparison and we’ll show your estimated annual cost across available tariffs.
What EnergyPlus customers say
“I didn’t realise how much the standing charge was adding up. The comparison made it easy to see the full cost, not just the headline rates.”
“Quick process and clear options. I switched to a tariff that suited my low usage and now the fixed daily cost is much more manageable.”
“Helpful to compare gas and electricity together. I liked being able to check by postcode and see the estimated annual cost.”
Whole-of-market comparisons: we help you review a wide range of home energy tariffs available for your postcode and meter type.
Clarity over headline changes: instead of guessing how a cap might affect you, compare your estimated annual cost with today’s pricing.
Don’t wait and wonder—compare your best options today
A standing charge cap may change how bills are structured, but switching to a better-value tariff can help you control costs now. Start with your postcode for a personalised whole-of-market comparison.
- See tariffs available for your home
- Compare estimated annual costs
- Understand standing charges and unit rates clearly
Get started
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