Domestic consumers' views on energy pricing

Findings from a programme of domestic consumer research on energy pricing conducted in 2025.  

We are reviewing how energy costs are allocated and recovered. The way in which fixed energy costs, such as those for maintaining and upgrading pipes and cables, are allocated to consumers’ bills affects all households in Great Britain (England, Scotland and Wales). It is therefore vital that we understand consumers’ perceptions and preferences on this complex issue. This research was conducted to provide evidence on consumer views and preferences on this issue to support Ofgem’s work on standing charges and our Cost Allocation and Recovery Review.  

Main points

• A majority (62%) see standing charges as unfair in our omnibus survey, but consumer views on how best to structure costs are divided. 
• When presented with further information on standing charges and trade-offs, perceptions of unfairness reduce slightly; from 58% among those given basic information to 54% given enhanced information in the online experiment. 
• Our deliberative research shows that affordability is a top priority when thinking about the future of energy pricing.   
• Consumers shared a strong desire to create a ‘fair’ system that protects consumers in vulnerable circumstances.    
• Simplicity and transparency matter; consumers want energy pricing to be easy to understand and navigate.  
• Innovation is welcomed, if it benefits consumers.  

Methodology

This report summarises findings from three consumer research pieces conducted in 2025, which are:   

• an omnibus survey: Consumers’ attitudes towards standing charges   
• an online experiment: Exploring consumer views on cost allocation   
• a deliberative research project: Exploring consumer views on the future of energy pricing