Introducing a zero standing charge energy price cap variant

Overview

We are seeking views on a new zero standing charge option within the energy price cap which will give household bill payers more choice in the energy market.

Who should respond

We would like to hear from energy suppliers and consumer groups. We would also like to hear from industry groups and network companies.

Background

In August 2024, we asked for feedback on options to reduce household standing charges. We found that many consumers wanted us to reduce, significantly change or remove standing charges entirely.

Many of these consumers shared that they would prefer to pay for their energy based only on use (unit rates) rather than also paying a standing charge. In general, they wanted more choice and control over how they pay for their energy costs.

We are looking to create a zero standing charge option that allows consumers to choose how they contribute to these costs. In our consultation, we explain the different ways this could work and other details, such as how consumers might get onto the tariff.

Why your views matter

Your feedback will help us understand how this new variant could work, if the proposed tariff options are suitable or whether alternative options should be considered. If implemented, consumers could choose to opt into it from next winter.