Requirement to offer lower standing charge tariffs
- Publication type:
- Consultation
- Status:
- Open
- Publication date:
- Closing date:
- Topic:
- Energy pricing rules
- Subtopic:
- Standing charges
- Industry sector:
- Supply and Retail Market
We want your feedback on introducing new rules stating that energy suppliers must offer their customers at least one lower standing charge tariff option.
Consultation description
In February 2025, we considered introducing a zero standing charge variant within the energy price cap.
We also undertook domestic consumer research and an online behavioural experiment. This was to understand consumers’ attitudes towards standing charges. Through this, we identified that they wanted more control over how they pay for their energy costs.
We are now proposing a different approach to the ‘zero standing charge price cap variant’. Under this new proposal, energy suppliers are required to offer customers at least one tariff with lower standing charges in all regions in England, Scotland and Wales. This approach should give more flexibility to allow suppliers to recover their costs while providing consumers with more choice.
We would make this a requirement under the Standard licence conditions. They would also need to clearly explain what the tariff rates and charges are to their customers so they can make informed decisions.
Who should respond
We would like to hear from:
- energy suppliers
- energy consumers and the public
- consumer groups
- charities
- industry groups
- network companies
How to respond
Complete our online consultation by 22 October 2025. If you have any questions, email standingcharges@ofgem.gov.uk.