MSE News: E.on and EDF launch limited trials of 'low Standing Charge' tariffs

MSE_Abby

Major energy firms E.on and EDF have launched experimental 'low Standing Charge' tariffs for a limited number of customers. Both work very differently, but neither is a straightforward winner, even if you meet the eligibility criteria. Here's what you need to know…

Read the full story:

https://www.moneysavingexpert.com/news/2026/07/low-or-no-standing-charge-trials/

If you haven’t already, join the forum to reply.

bristolleedsfan

EDF have set Electricity consumption threshold of 666 kWh - 1800 kWh per year.

courier9585

Currently with EDF and i got a quote out of interest for the Freephase static tariff, the unit rates were slightly cheaper in the green (25%) and amber (65%) split, but the standing charge was more than 20% dearer for electric than my current fixed tariff.

Scot_39

Where is what many might have expected - a genuine no ties low standing charge tariff equivalent to SVT for the masses - for the near 66% as was on current SVT?

EDF - a Complex TOU - so not even arguably one for the c97% who were on SVT/conventional fixes according to Ofgem "state of the market" report Q2 2025 data.

EOn a long fix - when markets still high and volatile - and exit fees - a significant component of a low users annual bills.

And both only saving less than half the current average regional SC.

I really hope ML does a more in depth critique of the pitfalls and benefits of these offers - perhaps on his TV show if still going - so it gets full media coverage.

ML wanted zero SC tariffs to help the poor and vulnerable - I really don't think these do that in a straightforward fashion - as many would have hoped for.

And the downside risks for both are clear (folk who do not or cannot time shift, EOn potentially locking in higher gas prices (although given todays news of a LPG vessel strike in the gulf - and a c4% price increase - maybe not).

Dare I say it - but it really makes me wonder if the whole exercise worth the effort and distraction ?

bristolleedsfan

"Dare I say it - but it really makes me wonder if the whole exercise worth the effort and distraction ?"

EDF launched on 2 June, EON Next 9th June, not a word on this forum about either until now.

kaMelo

Maybe it's me but it feels like history repeating itself.

Around 20 years ago I was on an EON tariff that had no standing charges however the first xxx number of units were charged at a higher rate and anything over that number were charged at a reduced rate.

What happened that meant these type of tariffs disappeared two decades ago?

Scot_39

There was a series of tariff simplifications brought in - after some years when their was growing concern too many tariffs were making it difficult for consumers to choose the best value.

IIR the first stage of Ofgem legislating for it came c2011 - but it had been bubbling along merrily for years before that in some cases - and I seem to remember others up until about 2016 tweaking the rules.

But at no stage iirc did it ban zero SC terms - iirc at one time it said that you had to table the standing charge as a cost - but that cost could in fact be zero.

In fact before the extension of the CAP to credit metering - there were more than a handful of firms still offering them iirc.

Many might have failed - but others do blame the cap and pricing / cost structure in part for their final demise - when their are fixed costs to be met - its difficult for suppliers to avoid them - to risk not recovering them from all customers.

EssexHebridean

https://forums.moneysavingexpert.com/discussion/comment/82061961#Comment_82061961

People found them terribly confusing as much as anything else - and indeed, working out what your costs would be was certainly less straightforward than now, especially as this was at a time when less people were inclined to use spreadsheets for such things on a household level. Generally speaking, that it is clearer for people to be able to see and calculate their use and costs is excellent - all we need to do now is encourage more folk to actually do so!

Octopus have also now launched a lower SC tariff - see the Octopus fixes thread for information.

Qyburn

https://forums.moneysavingexpert.com/discussion/comment/82061961#Comment_82061961

I'm pretty sure that at one time they weren't allowed to charge unit rate higher than the price cap.

Scot_39

Out of interest - can you expand on that cap issue Qyburn - and which price cap - in terms of years ?

And would any such tariff have to be price cap compliant anyway. Fixes arent, TOU arent etc etc.

And certainly Fixes regularly do go through periods when charge more than the cap. Why folk worry about their exit fees.

The current cap - (or rather its forerunner) only came in iirc for prepay c2017 and for credit / prepay as we know it today in 2019.

And the only remaining zero SC tariff - AFAIK - still charges far more on the first 2 kWh a day - than the prepay cap equivalent rate - as has to recover the c53p ave SC on electric and 29p on gas presumably (although only ever saw users here quote their electric numbers)

And its only a total price - so on E7 - there's nothing stopping UW say offering 10p/35p whilst others offering say 15p/30p.

And those day rates - are all above the average rate - that Ofgem also now does publish per region - the current value 24.44p regional average

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/energy-price-cap-unit-rates-and-standing-charges

tfhnota

That Octopus low s/c would save me £49 over nine months (of only using electric) and then for winter the much higher gas rate would claw it all back, so brilliantly calculated by Octopus to make it pointless even for ultra low users like myself. That is assuming there is no minimum usage, which there may well be in the small print.

It is a stitch up, Ofgem will "sadly" conclude that there is no need for low standing tariffs as there is no demand but there is no demand because of the useless tariffs on offer.