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Ofgem lower standing charge tariff pilot: what to check before your fixed tariff ends
Ofgem is running a one-year pilot allowing some suppliers to offer lower standing charge tariffs. Suppliers are expected to set higher unit rates, so the fixed tariff end date remains the household's review point.
Published 8 July 2026
What changed
Ofgem is launching a one-year lower standing charge tariff pilot, starting from June 2026. Participating suppliers — first EDF, E.ON, Octopus and British Gas — can offer lower standing charge tariffs to eligible customers, with limits on how many can join.
Standing charges are the fixed daily charges paid before any gas or electricity is used. Reducing them does not automatically mean the whole bill will be lower: Ofgem says suppliers are expected to set higher unit rates on these tariffs to offset the lower daily charge.
What it means before your fixed tariff ends
A lower standing charge changes how the bill is structured, not what the household pays overall. Whether a household pays more or less depends on usage, when electricity is used, region, meter type and the exact tariff terms.
Fixed terms, trial periods, exit-fee windows and time-of-use pricing all create dates that need to be reviewed before they pass. The fixed tariff end date is still the point at which the pricing basis can change again — so it remains the household's review point.
What to do now
Check the fixed tariff end date, standing charge, unit rates and whether rates vary by time of day.
Check whether the tariff is limited to selected customers, and whether a smart meter or Direct Debit is required.
Check whether exit fees apply, when they stop, and what tariff the supplier says the household moves onto afterwards.
Related pages
Energy reminders
Track your energy renewal date so the next change is on your calendar, not the provider's.
Energy fixed tariff ending report 2026
Evidence on how UK prices move at this renewal — what households are paying and why.
What to check before your fixed energy tariff ends
A short guide to the dates, terms and decisions behind this renewal.
Sources
- Ofgem — Lower standing charge tariffs: next steps. Ofgem is launching a one-year lower standing charge tariff pilot starting from June 2026, allowing participating suppliers — first EDF, E.ON, Octopus and British Gas — to offer lower standing charge tariffs to eligible customers with limits on how many can join, and says suppliers are expected to set higher unit rates so bills may not be cheaper for every household.
- EDF — EDF launches low standing charge trial. EDF says its trial is available through its FreePhase tariffs, with a £6.25 monthly standing charge discount per fuel and no exit fees.
- E.ON Next — E.ON Next launches trial of new lower standing charge tariff. E.ON Next says its trial is limited to selected eligible customers on a 24-month fixed tariff with lower standing charges but higher unit prices, and that £100 per fuel exit fees and terms and conditions apply.
- Octopus Energy — The Low Standing Charge Tariff trial. Octopus says its trial is limited to 33,000 homes, uses higher unit rates alongside the lower standing charge, and that the tariff will not save most people money because the higher unit rates can outweigh the standing charge reduction.
- MoneySavingExpert — EDF, E.ON and Octopus Energy launch limited trials of low Standing Charge tariffs. Consumer context: MoneySavingExpert warns households that a lower standing charge should not be treated as a simple win because the tariff structure matters.
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