What is Ofgem’s standing charge cap proposal for 2026?

Ofgem has proposed introducing a cap on the standing charge (the daily fixed amount you pay for electricity and/or gas, regardless of usage) from 2026. The aim is to reduce fixed costs and make bills fairer—especially for lower-usage households. Final details and eligibility will depend on Ofgem’s confirmed rules.

How could a standing charge cap affect my energy bill?

If a cap reduces the daily standing charge, you could pay less in fixed fees across the year. However, suppliers may rebalance pricing by changing unit rates (the per-kWh cost). Your overall saving depends on your usage, tariff, and how pricing is adjusted when the cap is implemented.

Who is most likely to benefit from a standing charge cap?

Lower energy users often feel the impact of standing charges the most, because fixed costs make up a larger share of their bill. Many small households, people who are out of the home frequently, and homes with strong energy-efficiency measures could see a bigger proportional benefit—depending on any changes to unit rates.

Will I definitely save money if standing charges are capped?

Not always. If standing charges fall but unit rates rise, higher-usage households could see smaller savings—or potentially pay more. The best way to estimate the impact is to compare your current annual consumption against updated tariffs once the rules and prices are confirmed.

How does solar help reduce my energy costs if standing charges are capped?

Solar PV reduces the amount of electricity you need to buy from the grid by generating power on your roof. Even if fixed charges are capped, cutting your grid imports can still lower your unit-rate costs. Adding a battery can increase self-consumption by storing surplus solar for evenings, improving savings and resilience.

Can solar and a battery help if unit rates rise after the cap?

Yes. If unit rates increase, each kWh you avoid buying from the grid becomes more valuable. Solar generation (and especially solar plus battery storage) can protect you from higher per-kWh prices by increasing the share of your electricity you produce and use at home.

What’s the quickest way to estimate savings from solar for my home?

A tailored estimate needs your annual electricity usage, roof orientation/size, shading, and whether you want a battery. You can request a solar quote and savings assessment from Energy Plus here: https://www.energyplus.co.uk/solar/

Could the standing charge cap change export payments (SEG) for solar?

The standing charge cap proposal is focused on how suppliers structure fixed daily charges, not directly on Smart Export Guarantee (SEG) rates. SEG payments are set by suppliers and can vary. A solar assessment can model both reduced imports and likely export income based on your system design and usage patterns.

When might the Ofgem standing charge cap come into effect?

The proposal referenced is for 2026, but timings depend on consultation outcomes and final regulatory decisions. If you’re planning solar, you don’t need to wait—installing earlier can start reducing your grid imports and improving bill certainty sooner.

How do I get a solar installation quote from Energy Plus?

You can start by visiting https://www.energyplus.co.uk/solar/ to request a quote. Share your address, recent electricity usage (or a bill), and whether you’re interested in a battery so the proposal can be sized for maximum savings and payback.

Ofgem standing charge cap proposal 2026: what you could save

If Ofgem introduces a standing charge cap in 2026, the way your energy bill is split between fixed and unit costs could change. Use EnergyPlus’ whole-of-market comparison to estimate your potential savings and switch to a tariff that suits how your household uses gas and electricity.

See how a standing charge cap could affect low and high usage households
Compare whole-of-market tariffs (not just a limited panel)
Get a personalised estimate in minutes with one simple form

Check my savings & compare How a cap could work

Guidance based on public information and typical bill structures. Actual outcomes depend on Ofgem’s final decision, your region, meter type and tariff.

Get a personalised view of your 2026 standing charge cap savings

A standing charge cap (if introduced) would mainly affect the fixed daily cost you pay for gas and electricity. Whether you save depends on your usage pattern, tariff type and where you live. EnergyPlus compares whole-of-market home energy tariffs so you can see options that may reduce your overall bill now, and help you be better positioned for future price structure changes.

Good to know: Even without a cap, savings often come from matching your tariff to your household (e.g., lower unit rates for higher users, or low standing charges for low users). We’ll help you compare both.

What we’ll estimate

Your current bill structure vs typical alternatives (standing charge and unit rate balance)
Likely “low usage” and “high usage” sensitivity to standing charges
Switch-ready tariff options available for your postcode and meter type

Prefer to read first? Jump to how the 2026 standing charge cap proposal could work and come back to the form when you’re ready.

On mobile, the form appears beneath the explanation for easier completion. On desktop, it sits alongside for quick access.

Who could save if Ofgem caps standing charges in 2026?

Standing charges are paid every day, regardless of how much energy you use. A cap would aim to limit how high those fixed costs can go. The impact usually differs by household type:

Low usage homes

If you use less energy (e.g., a smaller household, well-insulated home, or you’re out during the day), standing charges can make up a larger share of your bill. A cap could mean a more noticeable reduction in fixed costs—but unit rates could still matter.

Electric-only properties

If you don’t have mains gas, you may pay only an electricity standing charge—but you often have higher electricity usage (heating, hot water). A cap could help on the fixed side, while tariff choice still drives outcomes via unit rates.

Higher usage households

If you use more energy (larger households, older properties), standing charges are a smaller portion of the total. A cap may still help, but unit rates and tariff structure are usually the bigger lever.

Practical takeaway: The best “cap-ready” approach is to compare tariffs on the total annual cost, not just the standing charge. We’ll show both in your results.

What is a standing charge (and why does it matter)?

A standing charge is a daily fixed cost on your gas and/or electricity bill. You pay it whether you use energy or not. Suppliers use it to cover things like network costs, metering and billing.

Your bill typically has two main parts:

Standing charge (pence per day)
Unit rate (pence per kWh used)

If a standing charge cap is introduced, suppliers may respond by adjusting unit rates or tariff structures. That’s why it’s important to compare on the full picture, not one line of the bill.

Typical bill components (illustrative)
Component	What it means	Why it matters for a cap
Standing charge	Daily fixed cost	A cap would directly limit this (subject to Ofgem’s final rules)
Unit rate	Cost per kWh used	Could rise/fall depending on how suppliers rebalance costs
Discounts/benefits	Intro deals, bundle offers, smart meter tariffs	May change the total more than the standing charge alone

Illustration only. Actual standing charges and unit rates vary by region, meter type and tariff.

Ofgem standing charge cap proposal 2026: what it could mean for your home

If Ofgem progresses with a standing charge cap for domestic energy bills in 2026, the aim would be to place a limit on daily fixed charges. The details matter: caps could differ by fuel (gas vs electricity), region, and meter type (standard vs prepayment). The final design would determine whether savings come through as a lower standing charge, a different unit rate, or a change in how costs are allocated.

Why standing charges have become a focus

They affect everyone, including households using very little energy
They can make “using less” feel less rewarding
They vary by region and can change across price cap periods
They can be higher for some meter types due to cost recovery

What to watch if a cap is introduced

Rebalancing: lower standing charges could mean higher unit rates
Regional differences: your savings may be larger or smaller depending on local network costs
Tariff availability: some tariffs may shift structure or be replaced
Time-of-use: smart tariffs may become more attractive for some households

Next step: Use the savings estimate form to compare tariffs by total cost and see where standing charges sit today for your postcode.

How to compare tariffs when standing charges may change

If you’re researching “Ofgem standing charge cap proposal 2026 savings”, it’s easy to focus on the daily charge alone. A better approach is to compare using a few consistent checks—especially if you want a tariff that still works well if prices are rebalanced.

Start with annual cost, not headlines. Look at the estimated yearly cost for your household usage.
Check standing charge + unit rate together. A low standing charge can be offset by a higher unit rate (or vice versa).
Confirm your meter type and payment method. Prices can differ for prepayment and smart/standard meters.
Consider your pattern of use. If you can shift usage to cheaper periods, time-of-use tariffs may help.
Review exit fees and fixed-term length. Flexibility can matter if the market changes in 2026.

Common comparison mistakes

Comparing standing charges without adjusting for your kWh usage
Assuming a cap guarantees savings (supplier pricing may rebalance)
Ignoring regional pricing differences
Overlooking tariff end dates and exit fees

What EnergyPlus does differently

Whole-of-market comparison for home energy
Shows the balance of standing charge and unit rate
Results tailored to your postcode and household details
Clear next steps to switch with confidence

Savings scenarios: why your results depend on usage

A standing charge cap could reduce the fixed daily cost—but it doesn’t automatically reduce the full annual bill if other elements move. These simplified scenarios show why household usage matters.

Household type	Why standing charges matter	What to compare
Very low usage	Fixed costs can represent a large share of the bill.	Low standing charge tariffs and the total annual estimate.
Average usage	Savings often come from a balance of standing charge and unit rate.	The “all-in” annual cost across multiple tariff types.
High usage	Unit rates usually dominate, standing charges less so.	Competitive unit rates and contract terms; don’t chase standing charge alone.

If you’re unsure about your usage: submit the form and we’ll tailor the comparison. If you have recent bills, keep them handy—annual kWh for gas and electricity makes estimates more accurate.

Regional differences: why your postcode changes the numbers

In Great Britain, network charges can vary by region. That’s one reason standing charges and unit rates differ depending on where you live. If a standing charge cap is introduced in 2026, any regional application of the cap (or changes to cost recovery) could affect households differently.

Electricity distribution region impacts typical costs
Gas distribution zones can influence rates
Meter type (prepayment/smart/standard) can change tariff availability

Why we ask for your postcode

Your postcode helps match you to region-specific pricing so the comparison is meaningful. Without it, results can be misleading—especially when standing charges are the focus.

You can start your comparison here.

FAQs: Ofgem standing charge cap proposal 2026

Will a standing charge cap definitely happen in 2026?

Not guaranteed. Proposals can change following consultation and review. That’s why the best action is to compare tariffs based on today’s available deals while staying informed about upcoming changes.

If standing charges are capped, will my unit rate go up?

It could. If fixed costs reduce, suppliers may rebalance charges elsewhere (often via the unit rate). That’s why comparing the total annual cost is essential.

Does a cap apply to both gas and electricity?

Any cap design may treat fuels differently. Electricity and gas standing charges are set within different cost structures. Your results will show each fuel separately if you have a dual-fuel supply.

Will prepayment customers benefit?

Potentially, depending on the final cap rules and how tariffs are structured. Prepayment pricing can differ, so it’s important to compare with your meter and payment method in mind.

Is switching still worth it before 2026?

Often, yes—especially if your current tariff has comparatively high standing charges, unit rates, or both. A better tariff now can reduce your bills immediately, regardless of what happens next.

What information do I need to compare accurately?

Postcode, your contact details, and ideally your annual kWh for gas and electricity (from a bill). If you don’t have kWh, you can still start—then refine once you have your statement to hand.

Want a quick answer for your home? Get your savings estimate here.

Why households use EnergyPlus

Whole-of-market comparisons

We’re built to help you compare across the market so you can find a tariff that fits your usage—not just what’s easiest to promote.

Clear, bill-first results

We focus on the numbers that matter: standing charge, unit rate, and what you might pay over a year based on your details.

UK-based home energy support

Questions about meters, regions or tariff types? We help you understand options and what to do next.

What people say

“The comparison made it obvious where my bill was going. I didn’t realise the standing charge was such a big part of my costs.”

— Homeowner, North West

Confidence checks

Compare based on your postcode (regional pricing accounted for)
See standing charge and unit rates side by side
Switch options explained in plain UK English

Testimonials represent individual experiences and are provided for context.

Ready to see your potential savings?

Whether or not the Ofgem standing charge cap is introduced in 2026, you can still reduce your bills by choosing a tariff that matches your household usage. Compare whole-of-market options with EnergyPlus.

Get my savings estimate Revisit standing charges

Takes minutes. No obligation. UK home energy comparison.

Quick checklist

Have a recent bill? Keep it nearby (kWh helps)
Know your postcode
Check whether you have gas + electricity or electric-only

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Updated on 14 Feb 2026