From 1 July 2026, Ofgem changed the assumptions behind its headline price cap figure. Its typical domestic consumption values — the amount of energy an illustrative average household is assumed to use — were cut from 2,700 to 2,500 kWh of electricity a year, and from 11,500 to 9,500 kWh of gas.
The same cap, expressed as a smaller number
Because the headline figure is just the cap's rates multiplied by that assumed usage, shrinking the assumption shrinks the figure. The identical July cap was announced as £1,862 on the old basis and reads as £1,663 on the new one. April's £1,641 restates to £1,489.
Nobody's bill fell by £200. Unit rates and standing charges — the things you actually pay — were unaffected, apart from a small uplift (+0.8% electricity, +1.3% gas) so that suppliers still recover the same fixed costs over a lower assumed volume.
Why it was changed
Households genuinely use less energy than they did when the old values were set — better insulation, more efficient appliances, and behaviour change after the price shocks of recent years. An illustration based on outdated consumption was overstating what a typical household pays.
What to watch for
Comparisons that mix the two bases. A chart putting £1,862 next to £1,663 shows a dramatic fall that never happened; one putting £1,489 next to £1,663 shows the real quarter-on-quarter rise. Ofgem now quotes and restates everything on the new basis, so any figure you meet from before July needs checking before you compare it to anything.
The reliable move is to ignore headline annual figures entirely and compare the four numbers that don't depend on any assumption about usage: the electricity and gas unit rates and both standing charges. Currently 26.11p/kWh and 57.19p/day for electricity, 7.33p/kWh and 29.04p/day for gas, including 5% VAT.
More on how the cap is built in our July 2026 price cap guide. Source: Ofgem — Energy Price Cap.
The full explainer on this subject: July 2026 price cap guide. More updates on our energy news page.