Warm Home Discount (WHD): cost recovery
We are seeking views on whether WHD costs should move from standing charges to the per-unit rate.
Opened
8 Dec 2025
Closed
6 Jan 2026
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The costs of the Warm Home Discount (£39 on the typical dual fuel bill) are recovered by suppliers through the standing charge: a fixed daily fee applied to all customers regardless of energy usage.
This consultation seeks views on the impacts of a proposal to move WHD cost recovery from the standing charge to the unit rate - the per-kWh charge for electricity and gas usage - for both consumers and suppliers. We are seeking views from energy suppliers, WHD recipients, consumer groups and consumers on how WHD costs are recovered.
Read our consultation privacy notice.