Ofgem's decision on its review of the Typical Domestic Consumption Values came into effect on 1 July 2026, the regulator said in a letter re-publishing the price cap levels for charge restriction period 16b, covering 1 July to 30 September 20261. From that date, price cap levels and typical bills are expressed at 2,500kWh of electricity, 9,500kWh of gas and 3,400kWh for multi-register meters such as Economy 7, replacing the 2023 values of 2,700kWh, 11,500kWh and 3,900kWh1.
Ofgem said the change reflects "the falling trend in the consumption of electricity and gas" and that "the change in TDCV itself does not impact consumer bills"1. Unit rates and standing charges for April to June 2026 remain as set out in the 27 May 2026 announcement, and the cost allowance models and annexes are unchanged from that date1.
The restated figures for the July to September 2026 cap are lower than those published in May, because they assume less energy use. Both sets of numbers are given below.
| Cap level | April to June 2026 (2026 TDCV) | July to September 2026 (2026 TDCV) | Change |
|---|---|---|---|
| Direct Debit | £1,477 | £1,663 | 13% |
| Standard Credit | £1,599 | £1,796 | 12% |
| PPM | £1,439 | £1,620 | 13% |
| Economy 7 (Direct Debit) | £993 | £1,039 | 5% |
On the previous 2023 values, the same cap levels were £1,641 rising to £1,862 on direct debit, £1,772 rising to £2,005 on standard credit, £1,597 rising to £1,812 for prepayment, and £1,108 rising to £1,161 for Economy 7 direct debit2.
Ofgem attributed the underlying increase to wholesale costs, which rose 28% and now make up 45% of the cap, up from 40%2. It said the outbreak of war in the Middle East in late February was "the primary driver for wholesale market movements over the last three months", with the gas wholesale allowance up 50% and electricity up 9% on the previous quarter2.
"For the avoidance of doubt, the change in TDCV itself does not impact consumer bills."
The Office for National Statistics reported that gas prices rose 14.7% in the 12 months to July 2026, the largest rise since October 2022, and electricity 3.6%, attributing the increase mainly to the July change in the price cap3. It cited Ofgem's estimate that an average direct debit dual fuel household would pay £1,862 a year, a rise of £2213. That figure uses the 2023 consumption values; the equivalent figure on the revised values is £1,6631.
Why it matters for households
The cap figure is a benchmark, not a ceiling on what a home pays. It is the annual cost of a fixed quantity of energy at the capped unit rates and standing charges, so a household using more than 2,500kWh of electricity or 9,500kWh of gas will pay more than the headline number, and one using less will pay less. The revision lowers the assumed quantities, so the published typical bill falls even though the rates themselves are unchanged from the May announcement1. Households comparing the £1,862 figure widely reported in August with the £1,663 now quoted are looking at the same cap at two different consumption assumptions1.
For a home's energy independence, the practical point is that the benchmark now assumes lower consumption than before. A household whose usage sits above the new values is further above the typical figure than it would have been under the old ones, and the gap between its bill and the headline number is wider. The price cap still limits unit rates and standing charges rather than total spend, and the wholesale cost pressure behind this quarter's rise came from gas, which continues to set power prices2.
What happens next
The July to September 2026 cap runs to 30 September 20262. Ofgem has also published a technical consultation on an allowance to cover supplier costs of the Bill Discount Scheme, which supports funding of a government scheme providing discounts to households near new or upgraded electricity transmission2. The ONS next publishes consumer price inflation on 16 September 20263.