UK households could soon see changes to the way their energy bills are structured, but experts are warning it won’t necessarily lead to lower bills.
What is Changing with Standing Charges?
From January 2026, Ofgem has announced that every energy supplier must offer at least one tariff with a lower daily standing charge. The standing charge is the daily fixed fee you pay just for being connected to the grid and covers maintenance and transportation costs for the grid. At present, standing charges are around 53.68p per day for electricity. This may be a good move for households with solar, as many homeowners find that in the summer months, they are only paying their standing charge and importing minimal electricity through the grid.
The Problem with Lower Standing Charge Tariffs
While the move may sound positive, the lower standing charge deals will come with higher unit rate for energy use. That means customers who use more electricity could end up paying more overall. Citizens Advice have warned this change won’t address the real issue of high energy bills, especially as bills are set to rise another 2% in October with further increases predicted in the future.
Why Standing Charges Matter
During the energy crisis of 2022, when the average energy bill soared to over £4,000 per year, many households cut their energy use significantly, but no matter what they saved, the standing charge element of their bill remained the same. This frustration has driven calls for reform. Ofgem has been clear, that while the standing charge element can be reduced, the charges cannot be removed. They will need to be shifted to other parts of the bill, resulting in higher unit costs. Maintenance, upgrades and transportation of electricity still needs to be paid for, despite how little electricity you are using.
What Does This Mean for UK Homeowners?
- You’ll have more choice when it comes to your energy tariff
- Savings are likely to be small, unless you are using very little energy (perfect for those with an efficient, well designed solar PV system)
- Confusion may increase as more complex tariffs enter the market
- The underlying problem – high energy prices – remains
How Homeowners Can Really Cut Energy Costs
While tariff changes may give more flexibility, they’re unlikely to make a real dent in bills. The most reliable way to reduce energy costs long term is to use less energy from the grid, becoming less reliant on expensive grid electricity.
That’s where renewable solutions come in. At SolarTherm UK, we’ve been helping Essex, Kent, London and the wider South East homeowners significantly reduce their energy bills for over 15 years. By installing solar panels and solar batteries, you can reduce your reliance on the grid, future proofing your home against future price hikes and take back control of your power.
Unlike tariffs that just move costs around, solar energy offers a permanent solution that lowers bills and creates a more sustainable and predictable energy future.
Ready to Take Back Control of Your Energy Bills?
Contact SolarTherm UK for a free no obligation quote and design, tailored to your property, usage and future energy needs. No hard sell, just honest, expert advice.
Your home. Your energy. Your future.
