Richard Neudegg, director of regulation at Uswitch.com, comments: “Ofgem’s consultation about possible zero or low standing charge tariffs options by next winter might bring in a good option for some lower consumption households. But as ever, the devil will be in the detail.
“Consumers shouldn’t be under the illusion that under the price cap Ofgem will be able to reduce the much-hated standing charges without a trade-off elsewhere in the rates. If there is an option with lower standing charges under the price cap, there will be higher consumption based charges instead. Comparing options will continue to be essential, as different options will work best for different households.
“The public debate over standing charges has become louder in recent years - with so many households reverting to being on default tariffs, where the standing charges are effectively set by Ofgem’s price cap.
“Consumers can take action now to reduce what they pay for their energy. There are a range of fixed deals on the market, which can help households beat the January cap and the predicted price rise in April, and often come with lower standing charges than the cap. [1]
“Under Ofgem’s price cap, standing charges have risen 43% since 2019[2] and disproportionately affect lower-usage households, as these fixed costs make up a higher proportion of their overall bill.
“On the January price cap, dual-fuel households on default tariffs are paying £338 per year on average in standing charges.[3]”
For more information
Beverley Noble | Energy PR Manager
beverley.noble@rvu.co.uk
Twitter: @UswitchPR
Notes to editors
- Source Uswitch.com. Price Information correct as of 4pm on 19 February 2025 and based on suppliers which have updated Uswitch.com with their deals.
- Based on information providers by suppliers to Uswitch.com. Information correct as of 2pm on 11 December 2024.((31.65+60.97)-(26+27))/(31.65+60.97) *100 = 42.7% increase (Source: Ofgem)
- From 1 January - 31 March 2025: 60.97 pence daily standing charge for electricity, 31.65 pence daily standing charge (Source: Ofgem). (60.97+31.65)*365/100 = £338.06 per year for a dual-fuel household. (60.97)*365/100 = £222.54 per year for an electric-only household.
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.