Households across England, Scotland and Wales will soon have the option of switching to energy tariffs with lower standing charges, under new proposals from Ofgem. The regulator says all suppliers must offer at least one tariff where the fixed daily fees are reduced, though customers will then face higher rates for the gas and electricity they use. The move is designed to give more choice to those who feel penalised by unavoidable standing charges, but experts warn it will not cut overall bills.

Standing charges cover the costs of maintaining energy networks, transporting power to homes, and funding schemes to support supply. Currently, households typically pay 53.68p a day for electricity and 34.03p a day for gas via direct debit, with some regions paying even more. These fees are due to rise again in October, contributing to a 2% increase in bills for millions of customers on variable tariffs linked to Ofgem’s price cap.

Consumer groups say the proposed changes are unlikely to ease financial pressures. While lower standing charges could benefit households that use very little energy, the higher unit prices mean savings will be limited. Campaigners argue that more direct support is needed for vulnerable customers facing another difficult winter.

Ofgem acknowledged the reform is about redistributing costs rather than reducing them. The regulator said suppliers may also choose to offer zero standing charge deals, though these would involve significantly higher unit costs. The proposals are now open for consultation, with a final decision expected in the coming months.