Overview

• The regulator opened a final consultation and targets a year-end decision so suppliers can launch at least one lower standing-charge tariff by late January 2026.
• All major suppliers would be mandated to offer the option, but Ofgem has ruled out zero-standing-charge deals to avoid harming customers with high energy needs.
• Ofgem warns any cut to the daily fee will typically be offset by higher unit rates, meaning overall bills may not fall for many households.
• A minimum-usage requirement is proposed to prevent second homes or long-vacant properties from disproportionately benefiting.
• The mandate is described as a short-term step pending broader reforms to how network and policy costs are recovered, as a 2% price-cap rise takes effect on 1 October.