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Energy price cap: proposed changes to methodology to recover Warm Home Discount costs

Publication type:
Consultation
Status:
Open
Publication date:
Closing date:
Topic:
Energy pricing rules
Subtopic:
Energy price cap
Industry sector:
Supply and Retail Market
Scheme name:
WHD

We want your views on changes to energy price cap methodology to reflect proposals to move Warm Home Discount costs from the standing charge to the unit rate.

Consultation description 

The Department for Energy Security and Net Zero (DESNZ) are currently consulting on their proposal to move Warm Home Discount (WHD) scheme costs to the unit rate from April 2026 onwards. 

We are seeking views on the consequential changes that would need to be made to the energy price cap methodology if DESNZ decide to proceed with their proposals. 

If the department decide not to move the WHD costs from the standing charge to the unit rate, the current energy price cap methodology will remain the same. 

If the department proceeds with their proposal, we intend for the outcome of this consultation to be in place from 1 April 2026 onwards. 

Who should respond 

We would like views from people with an interest in the energy price cap (default tariff cap) level. We particularly welcome responses from: 

  • energy suppliers
  • other interested industry parties
  • consumer groups
  • charities
  • energy bill payers 

How to respond 

Submit your response by 9 January 2026 by emailing retailpriceregulation@ofgem.gov.uk

Consultation documents 

Please note that the XLSX files attached below are not fully accessible. If you require an alternative format, please contact retailpriceregulation@ofgem.gov.uk.

Amending the price cap methodology to reflect the change in Warm Home Discount (WHD) cost recovery [PDF, 302.97KB]
Annex 4: policy cost allowance methodology v1.22.1 [XLSX, 507.30KB]
Default tariff cap level v1.28.1 [XLSX, 4.90MB]