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Written by: EnergySwitch editorial team · Last reviewed: 14 October 2026
Direct answer: Ofgem is running a one-year pilot of lower standing charge tariffs, starting from June 2026. The tariffs are first being offered to eligible customers of EDF, E.ON, Octopus and British Gas. Ofgem says a dual-fuel customer could expect to pay about £150 a year less in standing charges than on the price cap, but suppliers are expected to set higher unit rates. The number of customers who can sign up is limited. Ofgem itself warns that these tariffs may not be cheaper for everyone.
What is the lower standing charge pilot?
A standing charge is the fixed daily amount you pay to stay connected, however much energy you use. After consulting on making every supplier offer a lower standing charge tariff, Ofgem decided instead to launch a pilot. It says many charities, consumer groups and suppliers opposed the original proposals, partly because the tariffs could cost more for higher users.
The pilot lets Ofgem test the idea in the real world. It will collect data from suppliers on pricing, sign-ups and customer experience, and use that to decide what to do about standing charges in future.
Key details, as stated by Ofgem
| Detail | What Ofgem says |
|---|---|
| Length and start | One-year pilot starting from June 2026 (moved from April 2026) |
| Suppliers | First offered to eligible customers of EDF, E.ON, Octopus and British Gas; Ofgem is encouraging more suppliers to take part |
| Standing charge | About £150 a year less than the price cap for customers using both electricity and gas, split across both fuels |
| Single-fuel customers | May not receive the full reduction |
| Unit rates | Ofgem expects suppliers to set them higher |
| Sign-ups | Limited number of customers |
| Area | Great Britain (England, Scotland and Wales) |
| Eligibility | Each supplier sets its own terms and eligibility criteria |
Who might it suit, and who might pay more?
Because you pay less each day but more for each unit, the outcome depends on how much energy you use.
- Lower users (for example a small flat, or a home that is often empty) pay standing charges every day regardless. A lower standing charge could help, as long as the higher unit rates don’t cancel it out.
- Higher users (larger homes, electric or gas heating used a lot) pay the higher unit rate on every kWh. The extra could outweigh the £150 standing charge reduction.
- Electricity-only homes may not get the full reduction, because Ofgem says it is split across both fuels.
We have not quoted a break-even usage or a saving figure, because suppliers set their own pilot unit rates and Ofgem has not published them. To see how unit rates and standing charges change your yearly cost, try our fix vs price cap calculator with your own usage and your supplier’s quoted rates.
Economy 7 and other time-of-use tariffs
If you have storage heaters or an Economy 7 meter, your tariff already has two unit rates. Ask your supplier whether the pilot tariff is available for your meter type, and compare it with your current day and night rates. Our Economy 7 explained guide covers how two-rate tariffs work.
How to check if you can join
- Check your supplier. The pilot is first being offered by EDF, E.ON, Octopus and British Gas. Other suppliers may join.
- Ask about eligibility and terms. Each supplier sets its own criteria, and places are limited.
- Get the full rates in writing: unit rates and standing charges for each fuel, plus any exit fees.
- Compare with your usage. Use your annual kWh from your bill, not typical figures.
- Talk to your supplier if you’re unsure. Ofgem encourages customers to discuss their energy use and whether the pilot suits them.
For background on why standing charges are what they are, see standing charges October 2026.
FAQ
Which suppliers are in the lower standing charge pilot?
Ofgem says the tariffs will first be offered to eligible customers of EDF, E.ON, Octopus and British Gas. It is encouraging more suppliers to join.
How much lower is the standing charge?
Ofgem says dual-fuel customers could expect to pay about £150 a year less in standing charges than on the price cap. The reduction is split across electricity and gas, so single-fuel customers may not get the full amount.
Will a lower standing charge tariff save me money?
Not necessarily. Ofgem expects suppliers to set higher unit rates, and says pilot tariffs may not be cheaper than other tariffs. Whether you pay less depends on how much energy you use.
Can anyone sign up?
No. Ofgem says the number of customers who can sign up is limited, and each supplier has its own eligibility criteria.
How long does the pilot last?
Ofgem describes it as a one-year pilot starting from June 2026.
Is this the same as removing standing charges?
No. Standing charges are reduced, not removed, on pilot tariffs. Ofgem says it cannot reduce the underlying fixed costs, and is looking at how costs are split between standing charges and unit rates through its wider cost allocation and recovery review.
Sources
- Ofgem, Lower standing charge tariffs: next steps (updated 22 June 2026, checked 14 October 2026)
