Ofgem re-published the updated energy price cap levels for charge restriction period 16b, covering 1 July to 30 September 2026, on 1 July 2026. The re-publication restates the same cap levels announced on 27 May 2026 but expresses them in the 2026 Typical Domestic Consumption Values, which took effect the same day. Ofgem said the cost allowance models and annexes are unchanged from the May announcement1.
The 2026 TDCV are 2,500 kWh of electricity, 9,500 kWh of gas and 3,400 kWh for multi-register meters such as Economy 7. The previous 2023 TDCV were 2,700 kWh of electricity, 11,500 kWh of gas and 3,900 kWh for multi-register meters1. Ofgem said the change in TDCV itself does not affect consumer bills, and that the rates for April to June 2026 remain unchanged from the 27 May announcement1.
Under the revised figures, the cap for a typical direct debit household is £1,663 for July to September, up 13 per cent from £1,477 in April to June. Standard credit is £1,796, up 12 per cent from £1,599, and prepayment £1,620, up 13 per cent from £1,439. Economy 7 on direct debit is £1,039, up 5 per cent from £9931.
| Cap level | April to June 2026 | July to September 2026 | 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% |
Ofgem also published the same cap levels under the previous 2023 TDCV, where direct debit is £1,862 for July to September, standard credit £2,005, prepayment £1,812 and Economy 7 direct debit £1,1611. The two sets of figures describe the same cap; only the consumption benchmark differs.
On what drove the change, Ofgem said the wholesale cost allowance has increased by 28 per cent and now makes up 45 per cent of the total price cap, against 40 per cent in the previous quarter. The gas wholesale allowance is up 50 per cent and the electricity wholesale allowance up 9 per cent. Ofgem attributed the movement primarily to the outbreak of war in the Middle East in late February and its effect on LNG supply risk. Core operating costs rose 5 per cent because of the changed benchmark consumption figures, and indexed components including headroom, EBIT and VAT rose by 14 per cent on average1.
"For the avoidance of doubt, the change in TDCV itself does not impact consumer bills."
Why it matters for households
The cap sets a maximum for unit rates and standing charges on default tariffs, not a maximum bill, so what a household pays depends on how much it uses. The re-publication matters because the headline "typical household" figure has changed shape: the same cap now describes a household using less gas and electricity than before. A home that uses close to the old 2023 TDCV will see a bill closer to the figures in the second table than the first. Ofgem's own comparison of the two benchmarks shows the gap is roughly £200 a year on direct debit for the July to September period1.
The composition of the cap also shifted. Wholesale costs now account for 45 per cent of a typical direct debit bill, with networks at 25 per cent and policy costs at 6 per cent1. That concentration in wholesale gas and electricity links household bills more tightly to international fuel markets, which is the point at which energy bills and energy independence meet. The price cap remains the mechanism that translates those market movements into the rates suppliers can charge.
What happens next
Ofgem said it will monitor supplier compliance with the cap and take enforcement action where licence requirements or contract terms are not met1. The next scheduled cap announcement has not been reported in these documents.