How to save money on standing charges

Standing charges made simple

Standing charges are the daily fixed fees on your gas and electricity bills. You pay them even if you barely use any energy. For many homes the total can top a few hundred pounds a year, which is why they feel frustrating. The good news is change is coming that could tilt the balance back towards usage, giving you more control over what you pay.

From April 2026, government proposals could cut typical standing charges by about £39 a year by moving Warm Home Discount costs into unit rates. Ofgem is also requiring every major supplier to offer at least one lower standing charge tariff by the end of January 2026. These steps increase choice for households that would rather pay a little more per unit in exchange for lower fixed daily costs. Alongside this, Ofgem has dropped plans for a zero standing charge within the price cap, so the focus is on flexible options rather than a one-size-fits-all approach.

With the price cap set to fall to a typical £1,720 from July to September 2025, the structure of bills matters more than ever. If you can reduce your fixed charges and match your tariff to your usage, you can put real money back in your pocket without changing how you live day to day.

Small change, big impact: trimming standing charges helps low and efficient users make their savings count all year.

Quick next steps

• Check your latest annual kWh usage for gas and electricity.
• Ask your supplier if they already offer a lower standing charge tariff.
• Set a reminder for January 2026 to review newly mandated options.
• Compare whole-bill costs, not just the daily charge.

Who benefits most

If you live in a smaller property, spend time away from home, use very little energy, or have invested in efficiency or solar panels, lowering fixed charges can make a noticeable difference. Households watching every pound, students in shared homes with careful usage, and retirees in well insulated flats are likely to gain most from a tariff that shifts costs from standing charge to unit rate.

What is changing - and what it means for your bill

Standing charges cover network maintenance, metering and some policy costs. You pay them daily, regardless of consumption. Right now, many households feel these fixed costs are too high, especially if they are trying to be efficient. That is why several reforms are on the way.

By April 2026, the government plans to reduce standing charges by around £39 a year by moving certain scheme costs into unit rates. This aligns with wider efforts to rebalance bills. Ofgem, the energy regulator, will require all major suppliers to offer at least one lower standing charge tariff across Great Britain by the end of January 2026. These tariffs will come with clear explanations, so you understand the trade-off between a cheaper daily fee and a higher per-unit price.

Ofgem has decided not to set a zero standing charge within the price cap. Research showed people prefer choice over a single mandated structure. New rules also include minimum usage thresholds to prevent empty properties gaming the system. Alongside regulatory changes, policy ideas to shift some levies off electricity bills and reduce system costs could cut a typical household’s bill further by the end of the decade.

In short, expect more control over how you pay your fixed and variable costs - and a better chance to align your tariff with the way you actually use energy.

How to cut your standing charge in practice

Start with your usage. Find your annual kWh from your bill or app. If you are a low or moderate user, a lower standing charge tariff could suit you even if unit rates are a touch higher. Ask your supplier now, as some already offer options voluntarily, and be ready to compare widely when the new requirement lands in January 2026.

Next, weigh up the whole bill. A low daily fee can be cancelled out if you use more units than expected. Use a comparison that totals an annual cost based on your real kWh, not estimates. If you have solar panels or a battery that reduces grid consumption, the balance tends to favour lower standing charges because you buy fewer units overall.

Businesses can review their agreed capacity with their supplier. If the level is over-estimated, trimming it can reduce fixed charges. Non-domestic tariffs also vary in how costs are split, so switching can help manage unavoidable fees.

Finally, keep an eye on policy shifts. If more levies move into general taxation or system costs fall, unit rates could ease over time, making lower standing charge options even more attractive.

Why this matters now

Bills are still significant for many households. Standing charges feel unavoidable, which is precisely why small percentage changes can make a big dent in annual costs. With a 7 percent price cap fall to a typical £1,720 for July to September 2025, the relative benefit of reducing fixed charges grows. If you keep usage low through efficiency or on-site generation, shifting costs away from the daily fee makes your efforts count every day of the year.

Independent experts have welcomed movement on standing charges as a step in the right direction for fairness. Low-usage homes have long shouldered a disproportionate share of fixed costs, and more flexible tariffs begin to address that. Combined with longer-term system efficiencies and potential policy changes that remove levies from bills, there is a credible path to lower, more predictable energy costs.

You do not need to overhaul your lifestyle to benefit - just align your tariff with how you actually use energy.

Weighing it up

Watch-outs before you switch

Tariffs with low standing charges typically raise unit rates. If your household grows or you start using more energy - for example, adding an EV or moving to electric heating - the maths changes. Always model your annual cost using your real kWh and a realistic future scenario. For multi-rate tariffs, such as Economy 7 or similar, check both day and night prices and whether your usage pattern suits them.

Be careful with exit fees and contract lengths. Fixed deals can offer certainty but might lock you in if market prices fall. Smart meters help you track usage and unlock time-of-use options, but data accuracy and meter compatibility matter, so check with your supplier. Finally, if you receive the Warm Home Discount or other support, confirm how a tariff shift affects your total bill, not just the standing charge.

Other routes to savings

1. Improve insulation and draught-proofing to reduce the units you buy.
2. Fit solar PV or a home battery to cut grid reliance.
3. Use smart controls and thermostats to trim peak use.
4. Shift appliances to off-peak where a time-of-use tariff makes sense.
5. Review payment method and billing accuracy - direct debit and accurate meter reads can avoid cost creep.
6. For businesses, right-size agreed capacity and consider flexible contracts.

Common questions answered

Will every supplier offer a low standing charge tariff?

Yes. By the end of January 2026, all major suppliers must offer at least one tariff with a lower standing charge. Availability is already growing ahead of the deadline.

Are zero standing charge tariffs coming back?

No. The regulator has dropped plans to mandate zero within the price cap. Instead, you will see flexible options with clear explanations of trade-offs.

How much will the standing charge cut save me?

Government plans point to about £39 a year from April 2026 for a typical household. Your exact saving depends on your region, meter type and supplier.

Do low standing charge tariffs always save money?

Not always. If your usage is high, the higher unit rates can outweigh the lower daily fee. Calculate the total annual cost based on your actual kWh.

What if I have solar panels?

If you buy fewer units from the grid, a lower standing charge often works well. Check export payments, battery use and unit rates to confirm the best fit.

How Switcha makes it easier

At Switcha, we turn the complexity of tariffs into clear choices that fit your household. We start with your real usage, property type and meter setup, then model how different standing charge and unit rate combinations affect your total annual cost. As suppliers roll out lower standing charge tariffs ahead of the January 2026 requirement, we will surface those options alongside standard deals so you can compare like for like.

We keep an eye on policy changes, such as the planned £39 standing charge reduction from April 2026 and any shifts in levies that could alter unit rates. If you have solar panels or are considering a battery, we factor that in too, showing how on-site generation changes the ideal balance between fixed and variable costs. Our goal is simple - to help you pick a tariff that saves you money without sacrificing comfort or confidence.

A quick word on accuracy

This guide offers general information for GB households and businesses. Energy prices, tariffs and rules change, sometimes quickly. Always check details with your supplier and consider independent advice before committing to a contract or investment.