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Cam Maloney
Gas Standing Charge Scrapped: Is Electric Heating Worth It in 2027?
The government has announced that the gas standing charge is to be scrapped, with the cost folded into the gas unit price. Nobody's gas bill is being wiped out, but the change reshapes how gas heating is priced and begins to narrow the gap between gas and electricity prices.
For anyone weighing up central heating costs, utility bills and efficient heating options, that matters. In this guide we explain what is changing, what it could mean for your energy prices, and where electric heating, including infrared heating, fits in.
What Is the Gas Standing Charge, and Why Is It Being Scrapped?
What the standing charge pays for
The gas standing charge is a fixed daily fee that every gas customer pays whether they use gas or not. It covers the cost of keeping your home connected to the gas network, including pipes, meters and supplier overheads. Under the Ofgem price cap for October to December 2026, the average gas standing charge is 29.68p a day, which comes to about £108 a year.
What has been announced
In October 2026 the government confirmed that gas standing charges will be abolished and the money recovered through the gas unit price instead, the price you pay per kWh of gas used. Ministers have asked Ofgem to deliver it by the end of 2027 or as soon as possible after.
Some details are still to be confirmed:
The exact start date has not been set, although industry commentators expect it to line up with a price cap change in late 2027 or early 2028.
Ofgem has not said exactly how the cost will be spread.
Existing fixed-rate tariffs are expected to be unaffected until they end.
The electricity standing charge, currently around 54.83p a day, is staying for now. The government has said it will set out reform plans later.
How Much Will Gas Unit Prices Rise?
Today's price cap rates
Under the Ofgem price cap from 1 October to 31 December 2026, the average rates for a Direct Debit customer, including VAT, are:
Gas: 7.97p per kWh plus a 29.68p daily standing charge
Electricity: 26.32p per kWh plus a 54.83p daily standing charge
These are UK-wide averages that vary by region, and the price cap changes every quarter, so these numbers will move before the standing charge change takes effect.
The estimated gas unit price after the change
Moving about £108 a year of fixed costs into the unit rate adds roughly 0.9p to 1.1p per kWh to gas, depending on how the cost is spread. At today's prices, that would take the average gas unit price from 7.97p to somewhere between about 8.9p and 9.1p per kWh. These are estimates, not Ofgem figures.
Who pays more, and who pays less?
Because the charge is moving from a fixed fee to a per-kWh cost, the effect depends on how much gas you use. Using the higher estimate of 9.11p per kWh:
A low-use home burning 5,000 kWh a year could save around £50 a year.
A typical home using 9,500 kWh a year would see little change.
A high-use home burning 15,000 kWh a year could pay around £60 a year more.
Commentators estimate that around six in ten households will pay less and four in ten will pay more, with the higher-use homes that rely most heavily on gas central heating losing out. The government has said targeted support for some vulnerable high-use households will be announced.
Closing the Gap Between Gas and Electricity Prices
The "spark gap" explained
Energy analysts compare electricity and gas using the ratio between their unit prices, often called the spark gap. At today's price cap rates, electricity costs about 3.3 times as much as gas per kWh (26.32p against 7.97p).
If the gas unit price rises to around 8.9p to 9.1p and electricity stays the same, that ratio falls to roughly 2.9 to 3.0. The gap narrows, but it does not close: electricity will still be around three times the price of gas per kWh.
Why the unit price gap matters for your heating bills
For years, the high price of electricity relative to gas has been the main barrier to electric heating. A smaller gap shifts the numbers in electric heating's favour, but only at the margin. Two things are worth keeping in mind:
Efficiency matters. A modern gas boiler turns most, but not all, of its gas into useful heat, so 9p gas costs roughly 10p per kWh of heat delivered. Direct electric heating converts virtually all of its electricity into heat at the point of use, so a 26p unit costs roughly 26p per kWh of heat.
The bill is more than the unit price. How much heat you need, how well your home holds it and whether you heat every room all affect what you pay.
There is also a flip side. Today, a household that disconnects from gas avoids the standing charge altogether. Once the charge is rolled into the unit price, that saving goes away, so the fixed-cost penalty of gas no longer pushes anyone towards switching.
What This Means for Central Heating and Utility Bills
If your home uses a lot of gas, the change is a prompt to look at efficient heating rather than simply accept a higher per-kWh price. A few practical steps:
Check your gas usage. Your annual kWh figure on your bill or smart meter tells you which side of the change you are likely to land on.
Heat the rooms you use. Whole-house central heating warms every room whether or not anyone is in it. Zoned, room-by-room control avoids that waste.
Where Infrared Heating Fits In
Targeted, room-by-room heat
Infrared heating panels are electric heaters that give off radiant heat, the same kind of warmth you feel from the sun. Rather than warming a whole volume of air, they warm people and surfaces directly. Each panel can be controlled individually, so you can heat the rooms you are using and leave the rest alone. For homes where gas heating is warming empty rooms, that targeted approach can make the electricity price gap matter less.
No boiler, no gas, no servicing
Infrared panels connect to a standard electrical supply, so there is no boiler, no pipework and no annual boiler service or gas safety check. A typical full-property installation takes a day. For landlords, housing providers and homeowners, that removes recurring costs and compliance tasks alongside the fuel bill.
Pairing infrared with solar PV and smart controls
Because infrared runs on electricity, it works well with solar PV and battery storage, which can cut the electricity you buy from the grid, and smart thermostats add app-based scheduling and room-by-room control.
To be clear, infrared heating will not beat a gas boiler on unit price alone, because electricity is still dearer per kWh. The case for infrared rests on the whole picture: targeted heating, lower maintenance, no gas supply and the option to generate your own power. You can read more about how it works on our What Is Infrared Heating page.
Should You Switch to Electric Heating? What to Consider
Before moving away from gas, it is worth checking:
Your gas use and boiler age. An old, failing boiler makes the decision more urgent.
Your insulation. A well-insulated home needs less heat, whichever system you choose.
Your electricity supply and tariff. Check the supply can support new heaters, and whether solar PV or a time-of-use tariff could lower your cost per kWh.
A proper survey. Panels should be sized and positioned room by room.
Frequently Asked Questions
When will the gas standing charge be scrapped?
The government is aiming for the end of 2027 or as soon as possible after that. A firm date has not yet been confirmed.
Will gas get more expensive when the standing charge is removed?
The unit price per kWh will rise, by an estimated 0.9p to 1.1p, but the standing charge will disappear. Low-use homes should pay less overall and high-use homes more.
Is electric heating cheaper than gas?
Not on unit price. Electricity is still around three times the price of gas per kWh, but the gap is narrowing. Efficiency, zoning, maintenance costs and your own tariff or solar PV all affect your total cost.
Talk to Infrared Group About Efficient Electric Heating
Infrared Group designs, supplies and installs infrared heating for homes, landlords and housing providers. If you would like to talk through your heating costs, get in touch with our team for a survey, or explore our range of infrared heating panels.
Prices in this article are Ofgem price cap averages for 1 October to 31 December 2026 and estimates based on the government's announcement. Details and rates may change before the standing charge is removed.
Cam Maloney
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