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UK energy regulator plans to introduce zero standing charge tariffs

Published by Global Banking & Finance Review

Posted on February 20, 2025

1 min read

· Last updated: February 27, 2026

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Illustration representing Ofgem's proposal for zero standing charge tariffs in UK energy market - Global Banking & Finance Review
This image depicts the concept of zero standing charge tariffs proposed by Ofgem, aimed at providing UK energy consumers with more flexible billing options, as discussed in the article.
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(Reuters) - British energy regulator Ofgem on Thursday proposed that all energy suppliers offer tariffs with low or no standing charges, allowing consumers to pay these costs as part of their unit

Ofgem Proposes Zero Standing Charge Tariffs for UK Energy Consumers

(Reuters) - British energy regulator Ofgem on Thursday proposed that all energy suppliers offer tariffs with low or no standing charges, allowing consumers to pay these costs as part of their unit rate, to give them more flexibility in managing energy bills.

Ofgem, which is seeking feedback on the proposed price cap option, is aiming to make these tariffs available by next winter.

(Reporting by Radhika Anilkumar in Bengaluru; Editing by Shreya Biswas)

Key Takeaways

  • Ofgem proposes zero standing charge tariffs.
  • Tariffs aim to offer more flexibility for consumers.
  • Feedback is being sought on the price cap option.
  • Implementation is targeted by next winter.
  • Proposal could change how energy bills are managed.

Frequently Asked Questions

What is Ofgem proposing regarding energy tariffs?
Ofgem has proposed that all energy suppliers offer tariffs with low or no standing charges, allowing consumers to pay these costs as part of their unit rates.
When does Ofgem aim to implement these new tariffs?
Ofgem is seeking feedback on the proposed price cap option and aims to make these tariffs available by next winter.
Who reported on Ofgem's proposal?
The article was reported by Radhika Anilkumar in Bengaluru and edited by Shreya Biswas.

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