Energy price cap: benchmark consumption review

Details of outcome

We asked for your views and feedback on our proposal to update benchmark consumption used within the price cap calculations.

The price cap methodology requires an input assumption for the amount of energy a typical consumer uses. This is known as the price cap benchmark consumption.

Average energy consumption has fallen since the benchmark was first set. We proposed to update the benchmark consumption to include more up to date information in future price cap calculations.

In addition to this we asked for your views on the case for adapting the cap methodology to account for different levels of consumption that occur for different customer payment types.   

We received 14 responses to the consultation, including from energy suppliers and consumer groups. We have published the non-confidential responses. Overall, respondents supported updating the benchmark consumption and welcomed clarity on how future updates will be managed. 

We have carefully considered the feedback received and potential impacts to the energy market. Based on this, we have decided to proceed with our proposal to update the benchmark consumption to reflect the latest Typical Domestic Consumption Values (TDCVs) from January 2026. We will also link future benchmark updates to TDCV reviews. 

Read the full outcome

Please note that the document 'Modification to standard licence condition 28AD of all gas and electricity supply licences' attached below is not fully accessible. If you require an alternative format, please contact retailpriceregulation@ofgem.gov.uk.

Original consultation

The price cap methodology requires an input assumption for the amount of energy a typical consumer uses. This is known as the price cap benchmark consumption.

Average energy consumption has fallen since the benchmark was first set. We are proposing to update the benchmark consumption to include more up to date information in future price cap calculations.

Additionally, we would like your views on the case for adapting the cap methodology to account for different levels of consumption that occur for different customer payment types.

Who should respond

We would like views from people with an interest in the price cap methodology, including energy suppliers and energy industry bodies. We would also like responses from consumer groups and charities.