The typical household energy bill will rise by £1,862 from July 1, that’s £155 a month on standing charges alone. The figure, reported by the Daily Express, comes from supplier filings with Ofgem showing network cost increases and margin adjustments applied to standing charges, not unit rates.
As reported by the Daily Express, the hike applies to households on standard variable tariffs, about 11 million homes, and prepayment meter customers, who already pay higher standing charges. The increase is not a price cap rise in the usual sense; it’s a structural shift in how suppliers recover fixed costs.
Who qualifies, and who doesn’t
The £1,862 figure assumes a typical 3-bed semi using 12,000 kWh of gas and 2,900 kWh of electricity per year. Households on fixed tariffs or time-of-use plans will not see the increase until their contract ends. But for those on standard variable tariffs, the default, the charge kicks in automatically on July 1.
Prepayment meter customers face the steepest rise because they already pay a higher daily standing charge to cover meter rental and top-up infrastructure. The Energy Saving Trust estimates that 4.5 million households use prepayment meters; many are low-income homes that cannot absorb an extra £155 a month.
The catch is that standing charges are not consumption-based, you pay them whether you use any energy or not. That means households that have already cut usage through insulation or solar panels still get hit. A household with a 3 kW solar array that exports half its generation will see the same standing charge as a neighbour with none.
What it costs a typical 3-bed semi
Ofgem’s current typical standing charge for a direct debit customer is about £300 a year for electricity and £100 for gas. The £1,862 figure implies a combined standing charge of roughly £2,262 a year, a 4.7-fold increase. On a monthly bill, that’s £188.50 before you turn on a single appliance.
For a household using 12,000 kWh of gas and 2,900 kWh of electricity at the current price cap (24.5p/kWh electricity, 6.0p/kWh gas), the unit-rate portion would be about £1,430 a year. Add the new standing charge and the total bill hits £3,692, up from £1,830 under the old structure. The increase is entirely driven by standing charges, not unit rates.
Suppliers argue that standing charges reflect the fixed cost of maintaining the grid, wires, pipes, meter reading, billing systems. But consumer groups, including Which?, have long called for standing charges to be absorbed into unit rates, so that low-users pay less. The new figures make that argument urgent.
How to cut costs before July 1
Households on standard variable tariffs have three months to act. The most straightforward step is to switch to a fixed-rate tariff before July 1. Fixed tariffs lock in current standing charges and unit rates for 12–24 months. MoneySavingExpert estimates that the best fixed deals currently offer savings of £150–£300 a year compared to the price cap, but those savings will be dwarfed by the standing charge rise if you wait.
Another option is to request a time-of-use tariff, such as Economy 7 or a smart meter plan that charges lower rates overnight. These tariffs often have lower daily standing charges because suppliers recover costs through consumption. However, they require shifting usage to off-peak hours, not practical for every household.
For prepayment meter customers, the only way to avoid the hike is to switch to a direct debit tariff. Many suppliers now offer the same unit rates for prepayment and direct debit, but the standing charge difference remains. Requesting a meter removal or switching supplier can take 4–6 weeks, so start now.
Households on standard variable tariffs can apply through their supplier’s website or via a comparison site like uSwitch. Eligibility for fixed tariffs closes when the price cap changes, typically the day before a new cap takes effect. The deadline for the July 1 cap is June 30.
Frequently Asked Questions
No. The £1,862 figure applies to a typical 3-bed semi on a standard variable tariff using 12,000 kWh of gas and 2,900 kWh of electricity. Households on fixed tariffs, time-of-use plans, or using less energy will see a smaller increase. Prepayment meter customers face the steepest rise because they already pay higher standing charges.
Yes, if you switch to a fixed-rate tariff before July 1. Fixed tariffs lock in current standing charges and unit rates for the contract term. Switching after July 1 means the new standing charges apply. You can also request a time-of-use tariff, which may have lower standing charges but requires shifting usage to off-peak hours.
