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Ofgem Moves to Require Lower Standing Charge Tariffs From January

The regulator says the option gives low‑use households a different way to pay that will not generally reduce bills.

Overview

  • Ofgem has opened a final consultation, with a decision due by the end of the year and lower standing charge tariffs expected to be available nationwide by late January.
  • Proposals to allow zero standing charge deals have been dropped due to risks for high‑need customers such as those who rely on powered medical equipment.
  • Suppliers will be allowed to apply minimum‑usage rules to prevent disproportionate benefits for second homes or long‑vacant properties.
  • Reduced daily fees will be offset by higher per‑unit prices, meaning very low users may gain while average or high‑use households could pay more on these tariffs.
  • Consumer groups and industry figures, including Citizens Advice and Martin Lewis, question the benefits and call for wider reform as the price cap increases 2% on 1 October.