Ofgem announced plans for more low or no standing charge energy tariffs last year, and has today opened a consultation on how this would work
Ofgem has announced plans to scrap standing charges on energy bills, which currently average £338 per year for dual-fuel households. The energy regulator has opened a consultation on implementing low or no standing charge tariffs for all energy suppliers by winter 2025/26. These tariffs typically come with higher unit rates, making them more suitable for low-energy users. Ofgem is considering options such as single unit rates, falling block tariffs, and rising block tariffs for zero standing charge tariffs. The regulator also aims to ensure basic supply costs are covered through minimum usage requirements. Ofgem Director Charlotte Friel emphasized the goal of offering more choice while protecting vulnerable consumers, ensuring bills remain as low as possible.
