Domestic energy customers could see their standing charge reduced if they avoid using power at peak times, in a test tariff supported by Ofgem. The regulator is currently inviting energy suppliers to come forward to take part in the trials.
The regulator invited energy suppliers to test a tariff design with a standing charge that is split into two. One part will vary with electricity usage during peak periods.
Ofgem expects the trial to run from 1 October 2025 to March 2026 and says it will
Assess whether the structure can encourage consumers to shift usage away from peak period
• Understand better how consumers respond to novel standing charge structures
• Maintain effective system-cost recovery
• Provide consumers with greater control over their bills
• support long-term network planning and investment
Ofgem wants suppliers to apply by 4 July with information about:
• Their capacity to launch the trial by 1 October or the earliest feasible date
• Ability to include a sufficient base of eligible customers
• Trial features that could be supported
• Willingness to collaborate under a Memorandum of Understanding (MoU) including sharing required usage data
• Willingness to support the User Experience Study, including qualitative and quantitative research with customers
• Willingness to work with Ofgem to publish the trial results
The deadline to submit your submission is Friday 4 July 2025.