Overview

• All major suppliers will be required to provide at least one tariff with a reduced daily standing charge, available across payment methods by the end of January 2026 if approved.
• Ofgem has dropped earlier plans for zero-standing-charge deals after judging they could harm households with high energy needs.
• The regulator cautions that overall bills are unlikely to fall because lower standing charges will be offset by higher per-unit prices.
• Standing charges cover network transport, investment and supplier failure costs, which Ofgem says cannot be eliminated and must still be recovered.
• Energy minister Martin McCluskey supports the move as increasing consumer choice, and Ofgem is considering minimum-usage rules to prevent second homes from gaining undue benefit.