And while some argue the standing charge should be scrapped altogether, this would leave some of the most vulnerable energy consumers who use a lot of energy worse off, because the cost would then have to be added to the unit rate.
Some suppliers already offer low or no standing charge tariffs, but the plans announced by Ofgem would make it so every energy firm has to offer them from this winter.
It comes as energy bills are set to rise again this April, with energy analysts at Cornwall Insight currently predicting the price cap will go up by another £85 a year.
He said: "The new 'low or no standing charge' price cap option should reduce costs for lower users – my guess is perhaps those paying under £120 a month – but to get it, people have to opt in.
Standing charges cover the cost of supplying energy to homes and businesses and are applied to your gas and electricity bill regardless of how much energy you use.
