Question: Standing Charge Abolish & Fixed Term Energy Contracts

cheets1337

Good day all!

I am writing to ask about how fixed term energy contracts will be affected if the standing charge was removed. Will it affect people on fixed term or will we still have to pay?

Thanks,

Craig

Grumpy_chap

Good day all!

I am writing to ask about how fixed term energy contracts will be affected if the standing charge was removed. Will it affect people on fixed term or will we still have to pay?

Thanks,

Craig

My expectation is that energy suppliers would be permitted to offer contracts with no standing charge and also offer contracts with a standing charge in parallel.

On that basis, if you are in an existing contract with an exit penalty, that exit penalty would still apply for the duration set out at the beginning.

Once you are through that minimum term, you would be able to leave the current contract without penalty and then take whichever new contract in the market place suited you best at that time.

QrizB

I am writing to ask about how fixed term energy contracts will be affected if the standing charge was removed.

Is there any reason to think that standing charges will be abolished, or is this just a theoretical question?

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/82181397#Comment_82181397

There seems to be some mumblings that the government might move all fixed costs from the gas standing charge to the unit rate for gas only in the fiscal year 2027/2028. This is rumoured as being for gas only, not electricity. It is an idiotic idea, so I would not be that surprised if it does happen.

CSH1

it just came up on BBC news they are going to go, I'm on a fixed rate from August and wonder how it will affect that, I am with BG so can move tariff within BG for free but the new tariff unit rate most likely will be higher than I'm on.

tfhnota

One down, two to go (electric and water), unit rates are going up to get the dosh back. Personally, surprised they went for it as it adds to the already crazy gas prices but not going to complain. Water s/c's will probably go before electric as the latter is the most complex.

debitcardmayhem

https://forums.moneysavingexpert.com/discussion/comment/82183631#Comment_82183631

The unit rate is going to be 100% higher from January next compared to this January , this will add on to that . Be careful for what you wish for, a lot of people are "high" users for health reasons and have other things to worry about than moving the deckchairs on the Titanic.

MSE_Helen_K

Thanks for this discussion everyone. Just popping in a link to our MSE news story on this with what we know for now – we're chasing for answers and will add these if we get them throughout the day.

https://www.moneysavingexpert.com/news/2026/10/energy-standing-charges-scrapped/

Largs

I did a back of a fag pack calculation. My £55 standing charge would stop. My 4000 units would have 1p added, so £40 extra.

Saving £15 per year.

Swipe

https://forums.moneysavingexpert.com/discussion/comment/82183682#Comment_82183682

It might not be 1p extra though, that's an MSE estimate. Each supplier will crunch their numbers and find the break even price that works for them. They will also probably add a little for contingency and then use that figure to add to the unit price.

t0rt0ise

Once again Martin Lewis causes me to pay higher bills. Thanks Martin, but I do wish you'd keep your mouth shut!