Richard Neudegg, director of regulation at Uswitch.com, comments: “More options for customers is a good thing. Energy deals with lower standing charges may be worth considering for households that use less energy, although are still unlikely to be the best choice in most circumstances.
“Ofgem is proposing to require suppliers to offer a tariff with a standing charge at least £150 less than in the price cap rate — around half of the expected standing charge in the coming year — but the unit rates will be higher than the price cap rate to compensate.
“These tariffs would be available to customers on all payment types, including with smart and traditional meters, although eligibility is proposed to be limited to ensure empty second homes don’t take advantage.
“While we await to see the detail, a typical lower use household paying £1,266 a year on the price cap from October, might save around £55 a year taking Ofgem’s proposed lower standing charge option, taking into account how unit rates might be upweighted. That compares with a higher saving of £167 typical lower-use households might pay on the cheapest fix available on Uswitch today.
“Ofgem’s plan is also only at the consultation stage, so there’s no guarantee that these tariffs will be available by January 2026. If they do become available, it will still be really important that consumers compare them with the fixed deals available to them, as lower usage households are likely to save more choosing the most competitive tariffs available.”
ENDS
For more information
Rianna York | Energy PR Manager
rianna.york@rvu.co.uk
Twitter: @UswitchPR
Notes to editors
1. From 1 October 2025 the national average price cap costs are: 26.35p/kWh for electricity and 53.68p standing charge, with 6.29p/kWh for gas and a standing charge of 34.03p. Reducing these standing charges by 50% would increase the electricity unit rate to 29.98p and the gas unit rate to 6.83p if the total costs for a medium-use household were kept consistent. Applying these new unit rates to a low-use household using 7,500kWh of gas and 1,800kWh of electricity means a gas bill of £574.36 and an electricity bill of £637.5766667. £574.36 + £637.58 = £1,211.93. At existing rates, this would be £1,266.19. £1,266.19 - £1,211 = £54.26 saving.
2. Fuse Energy: September 2025 Fixed (13m) V6
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to find their energy, broadband and mobile deals than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.