Ofgem Standing Charge Cap Proposal Calculator (UK)
Estimate what an Ofgem standing charge cap could mean for your household—and compare whole-of-market energy deals that suit your usage, tariff and payment preferences.
- Use our calculator-style form to model scenarios and potential bill impact
- See how standing charges and unit rates interact on your actual usage
- Compare whole-of-market home energy tariffs in one place
- No jargon—clear next steps and UK-based support
Estimates are illustrative and depend on your usage, region and tariff structure. We’ll always show comparisons clearly before you proceed.
Calculate the impact of a standing charge cap—then compare deals
Ofgem has discussed proposals around reducing or capping standing charges (the daily fixed cost on most electricity and gas tariffs). Households often ask: “If the standing charge was capped, would my bill go down?” The answer depends on your usage and on how suppliers set unit rates (p/kWh) alongside standing charges.
Use the form to tell us a little about your home and how you pay for energy. We’ll help you model the direction of change and then show whole-of-market home energy options—so you can make an informed choice now, not just in theory.
What you’ll get after submitting
- Scenario guidance on standing charge reductions vs unit rate changes
- Tariff comparisons across the market (where available for your postcode)
- Practical next steps if you’re on a prepayment meter, Economy 7, or have solar export
Why a standing charge cap could change your bill
Standing charges cover fixed costs such as maintaining local networks, metering and some policy costs. If they’re capped or reduced, suppliers may adjust unit rates. That means the impact differs for low-usage vs high-usage households.
Low usage homes
If you use less energy (small flats, single occupants, efficient homes), a lower standing charge can make a noticeable difference—because the fixed daily cost is a bigger share of your total bill.
High usage families
If unit rates rise to compensate, higher-usage households may see less benefit (or even pay more). Comparing tariffs helps you see whether a lower standing charge is offset elsewhere.
Prepayment & vulnerable consumers
Standing charges can be especially contentious for prepayment customers. Understanding the structure of your tariff is essential before switching—particularly if you’re repaying debt via the meter.
How standing charges work in the UK (simple explanation)
Your energy bill is typically made up of two parts:
1) Standing charge (p/day)
A fixed daily amount you pay regardless of how much energy you use. It varies by region, payment method and sometimes meter type.
2) Unit rate (p/kWh)
The price per unit of energy you consume. If standing charges are reduced, unit rates may increase depending on how costs are recovered.
What does “Ofgem standing charge cap proposal” mean?
Ofgem regulates energy markets in Great Britain and periodically consults on changes to how tariffs are structured. A standing charge cap proposal generally refers to limiting the maximum daily fixed charge suppliers can apply, or changing the way certain costs are allocated between the standing charge and the unit rate.
Because consultations can evolve, the most helpful approach is to treat this as scenario planning: understand how your household would be affected if the standing charge reduced by a given amount—and then check which tariffs are best for you right now.
Quick check: does a lower standing charge always save money?
| Household type | Standing charge change | Possible unit rate change | Likely effect |
|---|---|---|---|
| Low usage (e.g. 1–2 people, efficient home) | Lower | Slightly higher | Often benefits, but still compare |
| Medium usage (typical family home) | Lower | Moderately higher | Mixed—depends on kWh usage |
| High usage (electric heating, large home) | Lower | Higher | Could be neutral or worse if unit rates rise |
Illustrative examples (how to think about the cap)
These examples are simplified to show the mechanics. Real tariffs vary by region, payment method, and the supplier’s pricing structure.
Example A: low usage electricity household
- Standing charge reduces by 10p/day (about £36.50/year)
- Unit rate increases by 1p/kWh
- If you use ~2,000 kWh/year, that’s about £20/year extra in unit costs
- Net effect: could be roughly £16/year lower
Example B: high usage household
- Standing charge reduces by 10p/day (about £36.50/year)
- Unit rate increases by 1p/kWh
- If you use ~6,000 kWh/year, that’s about £60/year extra in unit costs
- Net effect: could be roughly £23.50/year higher
The best next step
Instead of guessing, compare tariffs by how they would price your typical month: fixed daily charge + expected kWh usage. We’ll help you do that using your postcode and preferences.
How to compare energy deals when standing charges might change
- Start with your usage reality. If you don’t know your annual kWh, use recent bills or your online account. Low usage homes often care more about standing charge; high usage homes are more sensitive to unit rates.
- Check your meter and tariff type. Economy 7/10, smart meters, and prepayment can change available deals and pricing structures.
- Compare total cost, not a single line item. A lower standing charge can be paired with a higher unit rate. Look at the estimated annual cost based on your kWh.
- Consider exit fees and contract length. Fixed deals can offer certainty, but read the key terms before switching.
- Review customer service and billing fit. App features, payment date flexibility, and meter reading processes can matter just as much as price.
FAQs: Ofgem standing charge cap proposal (UK)
Is there currently an Ofgem standing charge cap in place?
Ofgem sets rules and may consult on reforms, but outcomes can change over time. This page focuses on understanding potential impact and helping you compare tariffs based on today’s available options for your home.
What’s the difference between the price cap and a standing charge cap?
The price cap (often referenced in the news) limits the maximum amount suppliers can charge for a typical household on default tariffs. A standing charge cap would specifically limit the fixed daily charge element. They’re related, but not the same.
If standing charges go down, will my unit rate go up?
It can. If suppliers recover the same overall costs, a reduction in standing charge may be balanced by a higher unit rate. That’s why we recommend comparing the total estimated cost for your usage.
Why do standing charges differ by region?
Parts of the standing charge reflect regional network costs and how electricity and gas are distributed. That’s why your postcode is important for accurate comparisons.
Can I switch if I’m in debt to my supplier?
Sometimes you can, but it depends on the amount and whether you’re on a prepayment meter. We’ll help you understand your options and what’s realistic based on your situation.
Is this calculator an official Ofgem tool?
No. This is an EnergyPlus guide designed to help households model potential outcomes and compare home energy tariffs. We keep explanations practical and UK-specific, but estimates are not regulatory advice.
Trusted comparisons for UK households
People use EnergyPlus because they want straightforward comparisons and help understanding the detail—especially when headlines focus on one number like the standing charge.
“Clear explanation of standing charges and how it affects low usage. I finally understood why my bill didn’t match what I expected.”
“Compared deals quickly and the adviser talked me through unit rates vs standing charge without sales pressure.”
“Helpful for our family—turns out the lowest standing charge wasn’t the cheapest overall. Glad we checked.”
Ready to see what a standing charge cap could mean for you?
Submit your details and we’ll help you estimate impact and compare whole-of-market home energy tariffs available in your area.
Takes about 1 minute. Postcode required for regional pricing.
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