Ofgem standing charge cap proposal: savings calculator for UK homes
Estimate what a cap on electricity and gas standing charges could mean for your household bills, then compare whole-of-market tariffs with EnergyPlus to see today’s best options for your usage.
- Quick estimate based on your current standing charges and usage
- Clear explanation of what Ofgem’s standing charge cap proposal could change
- Whole-of-market comparison support for homeowners and tenants
- Free, no obligation – receive tailored options by email/phone
Figures are estimates to help you plan. Any regulatory change would be set by Ofgem and may vary by region, meter type and tariff.
Calculate potential standing charge cap savings – then compare tariffs
Ofgem has consulted on changes to how standing charges work. A cap would limit the daily fixed charge (separate from the unit rate). To help you plan, use the simple estimate below, then submit the form to compare whole-of-market deals for your home.
Fast estimate (no data stored)
Find your standing charge on a recent bill or in your online account. Enter daily standing charge values in pence per day. Your potential saving is roughly:
| What you enter | How to use it | Annual impact (estimate) |
|---|---|---|
| Current standing charge (p/day) | Take from your bill for electricity and/or gas | Used as your baseline |
| Proposed cap level (p/day) | Choose a cap figure you want to model | If cap is lower, you could save |
| Days per year | Typically 365 (or 366 in leap years) | Saving ˜ (Current - Cap) × 365 ÷ 100 |
Example: if your electricity standing charge is 60p/day and you model a cap of 40p/day, potential saving is about (60-40)×365÷100 = £73/year for electricity (before any unit rate changes).
Want a more accurate answer? Compare tariffs using your postcode
Tell us a little about your home energy setup and we’ll help you compare whole-of-market electricity and gas options. If you’re interested in solar too, we can flag tariffs that work well alongside home generation/export.
- Home energy only (not business)
- Works for credit, prepayment and smart meters (where available)
- We’ll highlight fixed vs variable choices and any exit fees
What you’ll need to get the most accurate comparison
- Whether you have electricity only or dual fuel (gas + electricity)
- Payment method (Direct Debit, standard credit, prepayment)
- Any recent annual usage in kWh (from your bill) – optional but helpful
What is Ofgem’s standing charge cap proposal?
A standing charge is the daily fixed cost you pay for being connected to the gas and/or electricity network, regardless of how much energy you use. Your bill is broadly made up of:
Unit rate
The price per kWh you use. This is where high-usage homes feel cost changes most.
Standing charge
A fixed daily amount that covers network costs and other components, even if you use little energy.
When people search for an Ofgem standing charge cap proposal savings calculator, they usually want to know whether lower daily charges could reduce bills – particularly for low-usage households, single-occupancy homes, people who are out at work most days, or properties with efficient heating.
Why a “cap” can be complicated
- Energy costs don’t disappear – if a standing charge is reduced, some costs may move into the unit rate.
- Standing charges vary by region and meter type (including prepayment).
- Tariffs differ: a lower standing charge doesn’t always mean a lower overall bill.
Who could benefit most from a standing charge cap?
Because standing charges are paid every day, they can have a bigger proportional impact on homes that use less energy. A cap could help some households more than others – depending on usage patterns and how suppliers adjust pricing.
Low-usage households
If your consumption is low, standing charges can make up a larger slice of your bill. A cap may reduce that fixed portion.
Flats & smaller properties
Many smaller homes use fewer kWh, so the daily charge can feel disproportionately high.
Solar households with lower imports
If you generate part of your electricity, you may import fewer kWh. Standing charges still apply, so changes can matter more.
People trying to cut usage
Efficiency improvements lower unit-rate costs, but standing charges remain. A cap could strengthen the reward for reducing consumption.
Single occupants
Single-person homes often use less energy overall but pay the same daily charge as larger households on the same meter type.
Not always: very high usage
If unit rates rise to offset lower standing charges, high-usage households could see smaller benefits (or none) depending on the final design.
How to estimate standing charge cap savings (step-by-step)
If you want a quick manual check without a spreadsheet, follow these steps. This method focuses on standing charges only – it does not include potential changes to unit rates.
- Find your current daily standing charge for electricity and/or gas (in pence/day). You’ll see it on your bill, in your online account, or on your tariff information label.
- Pick a cap figure to model (in pence/day). If the cap is higher than what you pay now, your standing charge wouldn’t reduce from this change alone.
- Work out the daily difference: Current standing charge - Proposed cap.
- Convert to annual: Daily difference × 365 ÷ 100 = £ per year (approx.).
- Repeat for gas if you have dual fuel, then add the two annual figures together.
A simple break-even check (if unit rates change)
If standing charges go down but unit rates go up, the question becomes: how many kWh would offset your standing charge saving?
| If you save on standing charge | And unit rate increases by | Break-even extra usage |
|---|---|---|
| £50/year | 2p/kWh | 2,500 kWh/year |
| £80/year | 1p/kWh | 8,000 kWh/year |
| £100/year | 3p/kWh | 3,333 kWh/year |
Break-even extra usage ˜ (Standing charge saving in £) ÷ (Unit rate increase in £/ kWh). This is illustrative only, but it helps show why a cap can affect households differently.
Regional differences, meter types and common gotchas
Standing charges are not identical across the UK. They can vary by region due to distribution network costs and can also differ for payment methods. If you’re modelling a cap, keep these points in mind:
Your region matters
A home in the North East may see different standing charges from a similar home in London. Use your postcode for accurate comparisons.
Prepayment vs credit
Prepayment meters can have different tariff structures. A cap proposal could apply differently depending on the final rules.
Electricity-only homes
If you don’t have mains gas, your electricity standing charge is especially visible because it’s the only standing charge you pay.
Dual fuel comparisons
Always check the combined cost for gas + electricity. A deal can look good on one fuel but not the other.
Common mistake: focusing on standing charge only
Your annual bill is the sum of standing charge plus (unit rate × usage). To choose the right tariff, compare using realistic annual kWh if you have it. If you don’t, we can still give you a strong estimate by household size and property type when you submit the form.
FAQs: standing charges, caps and switching
Is Ofgem definitely introducing a standing charge cap?
Ofgem proposals can change after consultation. Any final decision, timings and exact cap levels would be announced by Ofgem. This page helps you model potential outcomes and compare current tariffs.
Would my unit rates go up if standing charges are capped?
They might, depending on how costs are rebalanced. That’s why it’s best to look at the total annual cost when comparing tariffs, not a single line item.
Where do I find my standing charge?
Check a recent bill (paper or PDF), your supplier app, or the tariff information label. It’s usually shown in pence per day for gas and electricity separately.
Do standing charges apply if I use no energy?
Yes. Standing charges are billed per day while the supply is active. If you have an empty property, it can still accrue daily charges.
Can I switch tariff now and still benefit later if rules change?
Potentially, but it depends on the tariff terms. If you choose a fixed tariff, check the end date and any exit fees. We’ll point those out when we share options.
Is this calculator for business energy?
No – this page is for home energy (domestic electricity and gas) in the United Kingdom.
Why households use EnergyPlus
EnergyPlus helps UK households compare energy options with a whole-of-market approach. Our aim is to help you understand how pricing structures (like standing charges) affect your bill and then choose a tariff that fits your usage.
Whole-of-market focus
We look beyond a single supplier so you can compare a wider range of home energy options for your region.
Clear comparisons
We highlight the levers that matter: standing charge, unit rate, contract length, exit fees and payment method.
UK-based support
If you want help making sense of the numbers, we can walk you through options based on your home and priorities.
Customer comment
"I didn’t realise the standing charge was making such a difference. EnergyPlus helped me compare like-for-like and choose a tariff that suited our lower usage."
Domestic customer, UK
Customer comment
"We wanted to understand how different pricing structures could affect us next year. The comparison was straightforward and the advice was clear."
Domestic customer, Great Britain
Ready to see what you could pay on a better tariff?
Use the calculator logic on this page to understand standing charge changes, then let EnergyPlus compare whole-of-market home energy options for your postcode.
Home energy only. No obligation. We’ll explain your options in plain English.
What happens next
- Submit your details and postcode
- We review available tariffs for your area
- You get clear options and next steps
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