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Energy price cap additional wholesale allowance: unidentified gas

Publication type:
Consultation
Status:
Closed (with decision)
Publication date:
Last updated:
Closed date:
Topic:
Energy pricing rules
Subtopic:
Energy price cap
Industry sector:
Supply and Retail Market
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Our consultation on making interim adjustments to the unidentified gas allowance within the energy price cap.

Details of outcome

We asked for your views and feedback on our proposals to carry out an interim update of the existing unidentified gas allowance. We proposed using a different data source to better reflect the cost of unidentified gas in the default tariff cap.

We received 7 responses from energy suppliers that broadly were in support of our proposals. Three suppliers raised substantive points for our consideration.

After careful consideration of representations from stakeholders, we have decided to introduce an interim adjustment to the unidentified gas allowance while we evaluate an enduring approach. The interim unidentified gas allowances will be implemented from 1 October 2025.

Original consultation

Consultation description

We are reviewing the unidentified gas allowance within the energy price cap. We propose to use a new input which reflects final unidentified gas volumes as a temporary measure, while we continue to evaluate a robust and enduring approach to setting the unidentified gas allowance as part of our 2025-26 price cap programme of work.

This review is part of our wider review of wholesale allowance to make sure that the energy retail market is investable and resilient, and make sure that the price cap continues to protect energy customers.

We may decide to make changes to the unidentified gas allowance based on the responses we get from this consultation. If we do decide to make changes, they will be included in the default tariff cap from cap period 15a (October 2025 to December 2025) onwards.

Who should respond 

We would like views from people who have an interest in how we set the additional wholesale allowances in the energy price cap. This includes energy suppliers and energy industry bodies. We also welcome responses from consumer groups and charities.

How to respond 

The consultation closed on 13 August 2025.

All updates

25 August 2025 added consultation responses and decision on amending the unidentified gas allowance.