Introducing a zero standing charge energy price cap variant

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Closes 20 Mar 2025

Contents

We’d like you to answer all the questions in this consultation that are relevant to you, or where you have an interest. If you do not feel comfortable answering any of the questions, you can leave them blank.

After you have read each chapter, you can select the ‘Save and come back later’ option found at the bottom of each page.

If you start responding to the consultation and want to return to it later, select 'Save and come back later' to save your answers. You need to answer the questions on the 'About you' page before submitting your response.

Your responses will not be included as part of the consultation if you do not submit them before the closing date.

Other ways to give us your views

You can upload a supporting document at the end of the consultation which will get published alongside the answers you have submitted.

If you would prefer to give us your views in another way, you can send us your answers to the consultation questions by emailing them to standingcharges@ofgem.gov.uk.

Chapter 1: introduction

Outlines what we are consulting on and the background, what we want your feedback on and next steps.

Chapter 2: case for change

Sets out our reasoning behind introducing a new variant based on previous feedback.

Chapter 3: Tariff structures and impacts

Summarises the 3 tariff structures that could be used and our design methodology and modelling.

Chapters 4 to 6: single rate tariff, falling block tariff and rising block tariff

Compares consumption scenarios and the annual cost of energy on the zero standing charge price cap variant for each tariff structure.

Chapter 7: risk and uncertainty

Summarises the main risks of introducing a new variant, particularly under recovery, and potential ways to overcome these.

Chapter 8: implementation approach

Explains how the variant could be implemented and the customer journey.