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Ofgem to Enforce Lower Standing Charges from January 2026

  • Writer: mitchthorne98
    mitchthorne98
  • Sep 24
  • 2 min read

The energy landscape is shifting again. This time, it could mean real savings for UK businesses.


According to Reuters, Ofgem has announced that by the end of January 2026, all major energy suppliers must offer tariffs with lower standing charges.


For too long, standing charges, those fixed daily fees you pay just to stay connected to the grid, have eaten into profits. Even if your unit rates look competitive, high standing charges can quietly stack up, particularly for businesses with low to mid-range usage.


Why This Matters


  • Cost balance is changing: Standing charges can make up a significant slice of your bill, sometimes outweighing the unit rate itself. A lower standing charge puts more weight back on how much energy you actually use.

  • Businesses with moderate or seasonal usage benefit most: Think of restaurants closed two days a week, or retailers with seasonal peaks. Lower standing charges mean you’re not paying as heavily during your quieter times.

  • Contract reviews are essential: Not every tariff will rebalance in the same way. Some suppliers might adjust unit rates to compensate, which makes reviewing the whole contract critical.


Example: What Could Savings Look Like?


  • A business paying 80p/day in standing charges (around £292/year) could see this drop closer to 50p/day (£182/year). That’s £100 saved before you’ve even switched on the lights.

  • For businesses with multiple sites, these savings multiply fast. A chain with 10 locations could free up £1,000 a year just from reduced standing charges.


How PPS For Business Can Help


At PPS, we’re here to cut through the noise and show you where the real savings lie:

  • Tariff comparison: We’ll check your current deal against the new rules and see what options open up in 2026.

  • Switching support: If a better deal is out there, we’ll handle the heavy lifting to move you across.

  • Usage-based advice: Whether you’re a high-usage manufacturer or a café with quiet weeks, we’ll pinpoint the tariff structure that works for your business model.


This change from Ofgem is a step toward fairness and transparency. But as always, the devil is in the details. That’s where PPS ensures you don’t get caught out.


If you’d like to know how the 2026 changes might affect your business, PPS can give you clarity now, so you’re ready to make the most of it.



 
 
 

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