Ofgem has confirmed, following a year of consultation, that it will not be lowering the level of the standing charge1. The decision was announced on 12 December 2024 and drew a response from the fuel poverty charity National Energy Action1.
The standing charge is paid by energy customers regardless of how much energy they use1. National Energy Action said tens of thousands of individuals and organisations responded to Ofgem's consultation in support of reform, and that all major political parties made manifesto promises to reduce standing charges1. The charity's Director of Policy and Advocacy, Peter Smith, said the lack of significant reform was "extremely disappointing"1.
"While several options to better protect prepayment meter households have been identified, Ofgem has opted to do nothing, leaving vulnerable households in often dire situations."
National Energy Action said households using prepayment meters are particularly impacted by the continuation of high standing charges1. When their credit has been used up, standing charges accrue as a debt on the meter that must be cleared in full before accessing energy again, and the charity said the higher standing charges are, the longer households are left without being able to use energy1.
The level at which standing charges will be set, and any change to the rules covering them, has not been reported beyond Ofgem's confirmation that it will not lower them1. Ofgem's own statement on the decision has not been reported1.
Why it matters for households
A standing charge is a fixed daily cost that applies whether a home uses any gas or electricity or none at all1. Because it is not tied to consumption, it cannot be reduced by using less energy, so it forms a floor on a household's bill that remains in place through warmer months and periods when a property is empty or a heating system is switched off.
For homes on prepayment meters, the charge interacts with the meter's credit balance. National Energy Action states that once credit is used up, standing charges build as a debt on the meter that must be cleared in full before energy can be accessed again1. That links the size of the standing charge directly to how long a household can be without supply.
The decision leaves the standing charge reform question settled for now, with no reduction in the fixed element of bills. Households wanting to understand what the charge covers, why it sits at its current level, and how no standing charge tariffs compare with standard ones can find that background in the site's guides. The regulator's wider role is set out in the guide to Ofgem.
What happens next
No dated next steps have been reported1. National Energy Action said Ofgem had over a year to consider how to make the system fairer and identified options to better protect prepayment meter households, but the charity did not set out a timetable for further work1.