The regulator has launched a consultation that would force every supplier to offer at least one lower standing charge tariff by January 2026.
The move follows growing anger from consumers who say fixed charges are unfair.
Standing charges cover the costs of delivering energy, maintaining the grid and funding infrastructure upgrades.
Ofgem stressed these costs cannot be removed, only shifted.
Lower standing charge tariffs will mean higher unit rates, so customers will need to weigh up which option works best.
Tim Jarvis, Ofgem’s Director General for Markets, said: “We’ve listened to thousands of consumers that wanted to see changes to the standing charge and taken action.
“The costs covered by the standing charge ultimately must be paid. We cannot remove these charges, we can only move costs around. These changes would give households the choice they have asked for, but it’s important that everyone carefully considers what’s right for them as these tariffs are unlikely to reduce bills on their own.”
Some suppliers already offer tariffs with no or low standing charges but Ofgem wants to make such products available across the market.
Energy Consumers Minister Martin McCluskey welcomed the plan: “This proposal will make more tariffs available on the market, giving people more options to pay lower standing charges if that suits their needs.”
McCluskey said the government was “standing up for billpayers” through measures such as expanding the Warm Home Discount and bringing forward a new Warm Homes Plan in October.
The changes are a short-term step ahead of Ofgem’s wider review into how essential costs are shared in an energy system that is increasingly dominated by renewables.
