What is standing charge reform, and why’s it in the news this week?
Standing charge reform means the government and Ofgem looking again at the flat daily fee added to every gas and electricity bill, whatever you actually use. It’s back in the headlines because the energy secretary has called these charges “too expensive” for many households, and Ofgem has launched a formal review into how they’re worked out.
You pay a standing charge even if you’re away for a fortnight and your meter barely moves. That’s the bit people are angry about, and it’s why standing charge reform keeps coming up whenever bills are discussed.
Standing charges at a glance (checked August 2026)
Here’s what you’re actually paying right now, according to Ofgem’s own published rates for the current price cap period (1 July to 30 September 2026), for a typical Direct Debit customer paying the GB average rate.
| Fuel | Daily standing charge | Roughly per year |
|---|---|---|
| Electricity | 57.19p | around £209 |
| Gas | 29.04p | around £106 |
Your own bill may sit a little above or below this, since rates vary by region and payment method. Prepayment and standard credit customers are charged differently to Direct Debit, and Ofgem publishes the full regional breakdown on its site.
Why does the government think standing charges need reform?
The core complaint is fairness. A flat daily charge lands hardest on people who use the least energy, such as those in small flats, second homes, or households actively trying to cut back. Whether you use 2 units of gas a day or 20, the standing charge is the same.
Energy secretary Miatta Fahnbulleh has said standing charges are too expensive for many households, and confirmed that ministers are working with Ofgem to look at how these fixed costs could be recovered more fairly. Separately, Ofgem has opened its own review into standing charges and consulted on a price cap variant with a lower or zero standing charge option, moving more of the cost onto the unit rate instead.
Nothing about standing charge reform is locked in yet. Ofgem is clear that any change needs to keep funding essential costs, such as network upkeep and social schemes, so a rebalancing rather than a straight cut is the most likely outcome.
Can you get a lower standing charge tariff right now?
Yes, in some cases. Ofgem already requires suppliers to offer at least one lower standing charge tariff option, available since the start of 2026, across every region and to both smart meter and traditional meter customers. It’s a genuine option today, not something you have to wait for standing charge reform to deliver.
The trade off is usually a higher unit rate, so a lower standing charge tariff tends to suit low usage households best. If you use a lot of energy, such as running an electric vehicle or heat pump, the maths can flip the other way and a normal tariff may work out cheaper overall.
Octopus has already trialled its own version of this, and we covered the low standing charge trial when it launched. Worth a read if you want to see how one supplier is testing the idea before wider standing charge reform lands.
What should you actually do while standing charge reform is still being decided?
Don’t wait around for a policy announcement to sort your bill. There are three things worth doing this week, and none of them depend on what ministers decide.
Key takeaways
- Ask your current supplier whether they offer a lower standing charge tariff, and get a rough estimate of what it would mean for your usage.
- Work out your rough daily usage before switching tariff type, since a lower standing charge only pays off if your usage is genuinely low.
- If you’re struggling with fixed costs specifically, check whether you qualify for extra support through your supplier’s hardship fund or the Priority Services Register, which can flag you for extra protection.
- Keep an eye on Ofgem’s review. Any confirmed standing charge reform will be phased in, not switched on overnight, so there’s time to react once details land.
The reader we’d worry about is the one who does nothing and assumes their bill will just sort itself out. It won’t. Whatever standing charge reform eventually looks like, the Do Nothing Default costs you the same fee either way, so it’s worth a five minute check with your supplier now.
If you want a full explainer on how standing charges work and whether a zero standing charge tariff suits you, we’ve broken it down in our standing charges guide. It’s a good companion piece to this one.
Will standing charge reform actually lower my bill?
Probably not by much, and not soon. Ofgem has been clear that any standing charge reform is about how costs are split between the daily fee and the unit rate, not about cutting the total amount collected. Network costs, smart meter rollout, and social schemes still need funding from somewhere.
The honest answer is that most households will see costs shift around rather than shrink. High energy users may end up paying a bit more per unit if standing charges fall, while low energy users could come out ahead. Roo would call that swapping one nuisance for a smaller one, and they wouldn’t be far wrong.
- What exactly is a standing charge?
- It’s a fixed daily fee on your gas and electricity bill that covers costs like the network, meter reading, and supplier operating costs. You pay it regardless of how much energy you use.
- When will Ofgem decide on standing charge reform?
- There’s no confirmed date. Ofgem has said any change will be phased in gradually, and nothing is guaranteed until a final decision is published.
- Is a zero standing charge tariff already available?
- Not exactly. Ofgem has consulted on a zero or lower standing charge price cap variant, and some suppliers have run limited trials, but it’s not yet standard across the market.
- Who does standing charge reform help most?
- Households with low energy usage stand to gain most from any shift towards lower standing charges, since they’d pay less of the fixed fee. High energy users could see unit rates rise instead.
- Should I switch supplier because of standing charge reform?
- Not on its own. It’s worth comparing deals regularly regardless, but there’s no need to rush a switch purely because of an ongoing government review.
This is a slow moving story, and it’s tempting to just tune it out until Ofgem actually decides something. But the quick checks above take a few minutes and could save you more than waiting ever will.
