Ofgem has decided to update the benchmark consumption used in the energy price cap to align with the 2023 Typical Domestic Consumption Values (TDCVs), taking effect from 1 January 20261. The decision, published on 21 November 2025, follows a consultation opened on 27 August 2025 and closes the gap between the consumption assumption used in the cap and current household usage1.
The benchmark is the assumed annual energy use on which the cap's typical household figures are built. It has been based on 2017 TDCVs since the cap was introduced on 1 January 2019, and Ofgem says it no longer reflects typical consumption, which has fallen1. The regulator states the change will increase the cap level by about £9 per year for a typical customer from January 2026, though it notes the estimate may vary by individual circumstances and consumption, with the impact broadly the same across payment methods1.
The new figures, in kilowatt hours, are:
| Benchmark | Current (kWh) | From 1 Jan 2026 (kWh) |
|---|---|---|
| Gas | 12,000 | 11,500 |
| Electricity: single rate | 3,100 | 2,700 |
| Electricity: multi rate | 4,200 | 3,900 |
Ofgem will also amend the standard licence conditions so the benchmark consumption figures track future TDCV updates, rather than requiring a fresh decision each time1. It has kept a single benchmark across all payment types, having gathered initial feedback on payment method specific benchmarks as a separate process1.
"We have decided to update the benchmark consumption in the cap methodology to align with current TDCV (2023), commencing 1 January 2026"
Ofgem received 14 responses to the consultation: nine from suppliers, two from consumer groups and charities, and three from individual consumers1. It says the majority supported updating the benchmark, including all consumer groups and suppliers who responded, while individual consumers generally did not1. Suppliers were unanimous in supporting an update but differed on the data source, with some preferring 2023 Department for Energy Security and Net Zero median consumption data1. Consumer groups asked Ofgem to consider the impact on consumers and the interaction with the headroom allowance1.
Why it matters for households
The benchmark does not set any household's bill. It is the usage figure behind the quoted typical household bill, so a lower assumed consumption changes the arithmetic that produces the headline cap number rather than the rates a home pays per unit. Ofgem says the net effect of adopting the 2023 values is to raise the cap level by about £9 a year for a typical customer1. Households that use more or less than the benchmark will see a different outcome, and the rates by payment method remain a separate part of the cap. For a home weighing its own energy independence, the practical point is that the published typical figure will rest on a more recent view of how much gas and electricity a household actually uses, while the underlying unit rates and standing charges are set through the rest of the cap methodology.
What happens next
The change takes effect from charge restriction period 15b, commencing 1 January 2026, implemented through a modification under section 1(2) of the Domestic Gas and Electricity (Tariff Cap) Act 20181. Ofgem expects a review of TDCV to be carried out in 2026, with the results incorporated into the price cap, and says it expects to issue a call for input in early 20261. It maintains a commitment to review TDCV every two years and revise the values if the latest consumption data is materially different1.
Sources1 cited
- Energy price cap benchmark review: decision, ofgem.gov.uk