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Ofgem Moves to Require Suppliers to Offer a Lower Standing-Charge Tariff by January

Critics warn bills may not fall because costs would shift into higher unit rates.

Overview

  • Ofgem has opened a final consultation and targets a decision by year-end, with new offers expected across Britain by late January.
  • The regulator has dropped earlier zero-standing-charge options after fairness concerns for high-need users such as people reliant on medical equipment.
  • Ofgem says it is considering a minimum usage threshold to prevent second homes or vacant properties from disproportionately benefiting.
  • Consumer advocates including Citizens Advice and Martin Lewis argue the plan risks leaving vulnerable non-switchers worse off and should fall under the price cap.
  • The measure is framed as a short-term step during a wider review of cost allocation for grid upgrades, as the energy price cap rises 2% on 1 October.