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Ofgem confirms plans to introduce lower standing charge tariffs

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29 Sep, 2025by Julie GibsonEnergy Prices, Information, advice and guidance

Ofgem, the UK's energy regulator, has announced plans to introduce lower standing charge tariffs for domestic energy customers. This move aims to provide consumers with more control over their energy bills and address concerns about the fairness of current standing charges.

What Is a Standing Charge?

A standing charge is a fixed daily fee that energy suppliers charge to cover the cost of supplying energy to your home, regardless of how much energy you use. This fee can make up a significant portion of your energy bill, especially for households that use less energy.

What Are the Proposed Changes?

Ofgem's proposal requires energy suppliers to offer at least one lower standing charge tariff to all domestic customers across Great Britain by January 2026. These tariffs would be available to customers using various payment methods, including prepayment meters, and would not require any changes to existing payment arrangements. The aim is to provide consumers with more choice and control over how they pay for their energy.

Why Is This Important?

Many consumers have expressed concerns that current standing charges are too high and unfair, particularly for those who use less energy. By introducing lower standing charge tariffs, Ofgem hopes to reduce the financial burden on these households and promote fairness in energy pricing.

How Can We Help You Save Energy and Money?

Understanding these changes and how they impact your energy bills can be challenging. That's why we offer FREE energy-saving sessions for both individuals and groups. Our sessions provide practical advice on how to reduce energy consumption, lower your bills, and navigate the upcoming changes in energy pricing. Whether you're looking to make small adjustments or undertake more significant changes, we're here to help you find the best solutions for your needs.

To learn more or to book a session, please email Steve here.

Together, we can work towards a more energy-efficient and cost-effective future.