Requirement to offer lower standing charge tariffs

Closes 22 Oct 2025

Opened 24 Sep 2025

Overview

We want your feedback on introducing new rules stating that energy suppliers must offer their customers at least one lower standing charge tariff option.

Who should respond

We would like to hear from: 

  • energy suppliers
  • energy consumers and the public
  • consumer groups
  • charities
  • industry groups
  • network companies

Background

In February 2025, we considered introducing a zero standing charge variant within the energy price cap.

We also undertook domestic consumer research and an online behavioural experiment. This was to understand consumers’ attitudes towards standing charges. Through this, we identified that they wanted more control over how they pay for their energy costs.

We are now proposing a different approach to the ‘zero standing charge price cap variant’. Under this new proposal, energy suppliers are required to offer customers at least one tariff with lower standing charges in all regions in England, Scotland and Wales. This approach should give more flexibility to allow suppliers to recover their costs  while providing consumers with more choice.

We would make this a requirement under the Standard licence conditions. They would also need to clearly explain what the tariff rates and charges are to their customers so they can make informed decisions.

Before you start

Read Requirement to offer lower standing charge tariffs​. You'll find it in the 'Related' section on this page.

Please refer to this document when giving us your views.

Why your views matter

We want to know your thoughts on our proposals for standing charges before we decide to amend the licence conditions for energy suppliers.

Your feedback will help us make sure that consumers are protected when the new rules are in place.

Audiences

  • Consumer groups
  • Electricity suppliers
  • Energy industry employees
  • Gas suppliers
  • Government
  • Household bill payer
  • Policy

Interests

  • Energy price cap