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Ofgem Plans to Require Every Supplier to Offer a Lower Standing Charge Tariff by January

The regulator casts the move as a temporary, choice‑focused step that shifts fixed costs into unit prices rather than lowering overall bills.

Overview

  • Ofgem has opened a final consultation and expects to decide by year‑end, with the new tariffs available across Britain by the end of January 2026.
  • Earlier zero standing charge ideas were dropped after officials warned they could unfairly penalise households with high energy needs, including those reliant on medical equipment.
  • The regulator is considering minimum usage thresholds to stop second homes or long‑vacant properties from benefiting disproportionately.
  • Consumer groups and industry voices questioned the benefits, with Martin Lewis calling the plans disappointing, Citizens Advice warning some could pay more, and Energy UK highlighting limited gains from simply moving costs.
  • The announcement comes ahead of a 2% price cap rise on 1 October that lifts a typical annual bill to about £1,755, and Ofgem cautions the new tariffs are unlikely to reduce bills overall.