What are Low Standing Charge Tariffs?

In recent years, a lot of support from the Government for energy bills has been most beneficial for higher users – such as the Energy Price Guarantee (EPG), which saw Unit Rates and Standing Charges being capped for 9 months from October 2021 onwards. Unfortunately, lower energy users have been disproportionately affected by the energy crisis, by massive increases in what we pay for Standing Charges. 

For the South West of England, this is around a 142% increase for the daily electricity standing charge (around 60p a day now compared to 24p previously) and 6.2% for the daily gas standing charge (around 27p a day previously to 29p a day now) compared to pre–Energy Crisis (early 2021) rates. 

This means that even if you dramatically reduced your energy use, on average households are still paying over £10 a month more for the benefit of being connected to an energy supply, before any energy use is actually considered. 

The massive hike in Standing Charges since the Energy Crisis first began has many factors behind it, including but not limited to;

• the cost of absorbing bankrupt energy suppliers
• upgrading the National Power Grid to be able to handle more green renewable energy
• a shift of how costs incurred by energy suppliers for infrastructure and associated costs are passed on to domestic customers (moved off Unit Rates and onto the daily Standing Charge). 

Some PAYG customers have been able to access tariffs with slightly different pricing structures, but if they use over 2kwh of electricity or gas each day, they are still paying the equivalent to the daily Standing Charge. These suppliers’ default unit rates are still around the Standard Variable/Price Cap costs for each unit, making them more expensive than a Fixed Direct Debit tariff.

Following lobbying from energy charities such as NEA and campaigners such as Martin Lewis, some energy companies are beginning to introduce “Low or No Standing Charge” tariffs. 

Initially announced as due to be started from April of this year, some of them are only just coming into play now (July 2026), with more expected to become available soon (including British Gas). The suppliers have missed Ofgem’s target for all suppliers to be offering a low or no standing charge tariff option, which was initially set for January 2026. 

These trials are currently targeted only at those using around or less than Ofgem’s 2023-2026 Typical Domestic Consumption Value (TDCV) annual use estimate for a “low use household” – this is 1800kwh of electricity and 7500kwh of gas annually.

So, what are these trials, and who’s offering them? Each of them works slightly differently and have different structures around Unit Rates. Below we examine what's on offer:

Eon Next

A 24-month fixed tariff, with £100 per fuel exit fees. Eon Next claims this would benefit customers using under 1800kwh electricity and 7500kwh of gas a year, which is Ofgem’s 2023-2026 Typical Domestic Consumption Value (TDCV) Estimated Annual Use figure for a “low use” household. 

This comes from them cutting £150 off the Standing Charge off a dual fuel households bill, saving them around £12.50 a month. However, it comes with a 3.5p increase on the electricity Unit Rate and around 1p increase on the Gas Unit Rate. 

*PLEASE NOTE* Customers can’t actively request this one – it’s been offered to 25,000 targeted existing customers of Eon Next, who we assume are recognised as low-use consumers. If offered it, it’s important to check that it wouldn’t be cheaper to fix elsewhere first.

Octopus

A 12-month tariff with fixed rates and standing charges, with lower exit fees of £50 per fuel. 

Similar to Eon Next, the tariff will take off £150 a year from the Standing Charge part of the bills, equivalent to around £12.50 a month. Although no specifics have been given around the increased cost on the Unit Rates, Octopus have explained that it will be enough of an increase that it could “quickly swallow up the Standing Charge savings". 

Therefore, it’s likely to only be of benefit to homes using under the 1800kwh electricity/7500kwh gas TDCV each year. This will only show up as a tariff option for existing customers who might be eligible:

EDF

The low standing charge trial is specifically open to EDF customers on their “Freephase” tariff, who are using under 1800kwh electricity/7500kwh gas a year. 

The Freephase tariff is a Time of Use tariff, which rewards customers who shift their electricity use outside of peak demand hours, 4-7pm. This is a £6.25 credit on both gas and electric charges for dual fuel customers, or £6.25 off electricity standing charges only for customers who only hold electricity with EDF. This is in line with the other trails, representing a discount of £150 a year. 

British Gas

Although they haven’t given any details yet, British Gas were on the list to have one available to customers by April 2026, so watch this space...

As with most smart tariffs, you will need to have a smart meter for the EDF trial (set to half hourly reads) and likely for the other 2 suppliers offering them also, although this is as yet unconfirmed. 

Do you need support in checking if one of these trials may benefit your bills? 

If so, get in touch with our friendly Energy Advice Team on 01752 477117, email us on energyteam@plymouthenergycommunity.com or visit us at our Energy Advice Hub on Union Street, open 3 days a week.