Standard Charges

Standing charges on your energy bill are set by the National Grid for the infrastructure that supplies your energy. The energy cap went up on 1st July 2026 which means both the unit and standing charges will be increasing unless you are on a fixed contract. When fixed contracts come to an end the new ones offered will reflect the higher charges. 

So, in essence, if your contract ends after July, you’re screwed. Fair deal! 👍 (sarcasm)

Hi ​@PalsyP 

At the moment suppliers only have a limited ability to vary Standing Charges SC and Unit Rates UR and have to keep within the CAP set by Ofgem. For low users the SC can represent a disproportionate portion of the energy bill and after a review Ofgem have finally recognised that this is the case and they will be requiring suppliers to offer tariffs with lower SC but higher UR to benefit low users. SCs exist because there are system costs that need to be recovered but they could equally be recovered in the UR. Have a read of this.

https://www.ofgem.gov.uk/press-release/ofgem-confirms-plans-introduce-lower-standing-charge-tariffs

This explains the need for Standing Charges.

https://www.moneysupermarket.com/gas-and-electricity/standing-charges-explained/

Peter