Energy Systems Catapult published its response to Ofgem's consultation on the requirement to offer lower-standing-charge tariffs on 10 November 20251. The independent body said it supports the regulator's intent to improve fairness and consumer choice, but described the proposal as an interim step that does not set out how it will address the risks it carries1.
The response states that the consultation lacks clarity on how it will deal with reduced competition and higher bills for some customers on low-standing-charge tariffs1. Energy Systems Catapult said Ofgem should set out a clear, upfront plan to identify and proactively manage those risks, naming reduced competition and consumer harm in particular1.
"We support Ofgem's intent to improve fairness and consumer choice by requiring suppliers to offer a lower-standing-charge tariff. While a positive interim step, the proposal in this consultation lacks clarity on how it will address risks like reduced competition and higher bills for some low-standing-charge customers."
The body also argued that fairness and affordability depend on wider changes, saying Ofgem must enable diverse retail offerings and drive efficiency across wholesale, network and policy costs1. It cited its own recent research on Innovating Beyond Retail and Inclusive Smart Solutions, and said retail reform must enable innovation in tariff design to unlock flexible consumer offerings, reform cost recovery for whole-system efficiency and decarbonisation, and protect consumers equitably1.
The response does not give figures for how standing charges or bills might change under the proposal, and no such numbers appear in the published text1. Ofgem's own consultation document is not reproduced in the response, so the detailed design of the tariff requirement, its timing and any proposed rate are not set out here1.
Why it matters for households
Standing charges are the fixed daily amounts added to an energy bill regardless of how much gas or electricity a home uses, and they are covered in the site's guide to standing charges on energy bills. A lower-standing-charge tariff shifts more of the cost of supply onto the unit rate, so a household that uses little energy can pay less overall, while one that uses more can pay more. That trade-off is the reason Energy Systems Catapult raises the prospect of higher bills for some low-standing-charge customers1.
For a home weighing up no standing charge tariffs against standard tariffs, the practical question is how much energy it uses and whether a lower fixed daily charge offsets a higher price per unit. The response does not quantify that balance for any household type1. The wider context of standing charge reform and zero standing charge tariffs is set out separately, as is the question of why the standing charge is so high.
Energy independence at household level depends partly on how fixed costs are recovered and whether tariff design allows a home to benefit from shifting or reducing use. Energy Systems Catapult's argument is that lower standing charges alone will not deliver that without changes to how wholesale, network and policy costs are recovered1. The relationship between bill design and independence is covered in the site's guide to energy bills and energy independence.
What happens next
The response was published on 10 November 20251. No date for Ofgem's decision, and no timetable for any requirement on suppliers to offer lower-standing-charge tariffs, is given in the published response1. The process by which such rules are proposed, decided and changed is explained in the site's guide to energy consultations, and the regulator's role is covered in what Ofgem does and what it covers.
Sources1 cited
- Response to consultation on lower-standing-charge tariffs, es.catapult.org.uk