Ofgem sets the Price Cap based on annual typical usage for gas and electricity. When the Price Cap was first introduced in 2019, Ofgem used 12,000kWh of gas and 3,000kWh of electricity to calculate the annual Price Cap. These typical annual consumption values have been adjusted over the years, to take account of how much households are actually using on average each year.
Up until 30 September 2023, the headline Price Cap figure is based on typical annual consumption of 12,000kWh of gas and 2,900kWh of electricity.
However, from 1 October 2023, these typical amounts will change to 11,500kWh for gas and 2,700kWh for electricity. This means the headline figure for the Price Cap might look likes its dropped more than it actually has, as it won't be a like for like comparison.
See our Typical use has fallen blog for full info.