Ofgem to Mandate 'Zero Standing Charge' Energy Tariffs by Next Winter

The regulator's move aims to provide relief for low-energy users while addressing record household energy debt.

Ofgem will require energy suppliers to offer a 'zero standing charge' tariff option alongside existing tariffs by next winter.
Standing charges, fixed daily fees on energy bills, have more than doubled since 2021, disproportionately affecting low-energy users and vulnerable households.
The new tariffs will shift fixed costs to unit rates, benefiting lower energy users but increasing costs for high-energy users, many of whom have medical or health-related needs.
Household energy debt has reached £3.8 billion, a 91% increase in two years, prompting Ofgem to propose measures for more consistent and compassionate debt support.
Consumer advocates and charities have criticized the lack of significant reform, highlighting the burden on prepayment meter users and low-income households.