Ofgem has changed the benchmark consumption figures used in the energy price cap, effective from charge restriction period 15b, which begins on 1 January 2026. The regulator published its decision on 21 November 2025, following a consultation that opened on 27 August 2025 and closed on 25 September 20251.
The benchmark is the assumed annual energy use of a typical household, used to calculate the cap level. It has been based on Typical Domestic Consumption Values (TDCVs) from 2017 since the cap was introduced in 2019. Ofgem has decided to align it with the 2023 TDCVs1.
| Current benchmark (kWh) | Benchmark 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 said the change will increase the cap level by about £9 per year for a typical customer from January 2026, though it noted this estimate may vary by individual circumstances and consumption. It said the impact across payment methods will be broadly the same1.
"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 consumers. It said the majority of respondents, including all consumer groups and suppliers who responded, supported updating the benchmark, while individual consumers generally did not. Suppliers unanimously supported the update but differed on the data source, with some preferring 2023 DESNZ median data. Consumer groups asked Ofgem to consider the impact on consumers and the interaction with the headroom allowance1.
Ofgem also decided to maintain a single benchmark across all payment types, and to update standard licence conditions so the benchmark can track future TDCV changes. It said it expects a TDCV review in 2026, with a call for input in early 2026, and maintains a commitment to review TDCV every two years1.
Why it matters for households
The benchmark consumption figure is not a cap on how much energy a household can use. It is the assumed usage behind the headline "typical household" bill figure that Ofgem publishes each quarter. A household using more gas or electricity than the benchmark will pay more than the quoted cap level; one using less will pay less. The change to a lower benchmark means the headline figure will reflect a household that uses less energy than before, so the quoted typical bill and an individual household's actual bill may diverge more than they did previously1.
The £9 annual increase applies to the cap level for a typical customer, not to every household's bill. Ofgem said the effect arises because fixed costs recovered through unit rates are spread over a smaller assumed volume of energy1. The typical domestic consumption values page explains how these benchmarks work, and the price cap page covers how the cap is set.
What happens next
The new benchmark applies from 1 January 2026. Ofgem expects a TDCV review to be carried out in 2026, with a call for input in early 2026, and will incorporate the results into the price cap. It has committed to reviewing TDCV every two years and revising the values if consumption data changes materially1.
Sources1 cited
- Energy price cap benchmark review: decision, ofgem.gov.uk