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Written by: EnergySwitch editorial team · Last reviewed: 15 October 2026
Direct answer: On 12 October 2026 Ofgem opened a call for input on how it sets the price cap for time-of-use tariffs, including Economy 7. It sets out why the current method may not keep up with a changing market and three broad options for a new approach. Nothing has been decided. Ofgem does not ask specific questions, and it plans a further consultation in 2027. Responses close on 20 November 2026. Your Economy 7 tariff and price cap protection have not changed as a result of this paper.
What is Ofgem reviewing?
The price cap has a separate level for tariffs with more than one unit rate. Ofgem calls this the multi-register cap. It says the multi-register cap is used mainly for Economy 7, but also for Economy 10, Total Heating Total Control and, increasingly, other time-of-use tariffs.
Here is how it works today, according to Ofgem:
- There is one cap level for all multi-rate tariffs, which varies by payment method. It is based on typical use of 3,400 kWh a year, compared with 2,500 kWh for the single-rate cap.
- Suppliers can set their own day and night rates, as long as the weighted average of those rates is at or below the cap.
- For Economy 7, the weighting is fixed in supplier licence conditions at 52% off-peak and 48% peak.
- As an example, Ofgem gives the October 2026 direct debit multi-register electricity cap as £1,046 a year at 3,400 kWh.
For comparison, the current headline cap (1 October to 31 December 2026) is £1,723 a year for a typical dual fuel household paying by direct debit. The January to March 2027 cap is due by 25 November 2026 and has not been announced. See our energy price cap hub for the latest figures.
Why Ofgem says the method needs updating
Ofgem links the review to Market-wide Half-Hourly Settlement (MHHS). This change means suppliers pay costs based on when their customers actually use electricity, half-hour by half-hour, rather than on estimated “profile classes”. Ofgem says around 24 million electricity supply points had moved over by September 2026, with the rest due by May 2027.
The paper sets out several problems with keeping the current method:
- The data is going away. Profile classes will no longer exist after the move to MHHS, so Ofgem needs a new demand profile for multi-rate customers.
- It may undervalue off-peak use. Some costs for multi-rate customers are worked out using a single-rate usage pattern. Ofgem says this undervalues the savings that customers who use more energy at night bring to the system.
- One average doesn’t fit everyone. Ofgem gives the example of an electric vehicle driver who charges at night and a heat pump user who uses more electricity in the day. One average cap could be set too high for one group and too low for the other, and suppliers may then be less keen to offer tariffs for the group they lose money on.
The three options Ofgem sets out
Ofgem says the options are not exhaustive and are meant to show the trade-offs involved. It has not chosen one.
Option 1: a simple time-of-use cap
Ofgem would set the actual unit rates for two or three time bands, rather than one average. For the bands, Ofgem mentions the usual seven-hour Economy 7 off-peak period (usually midnight to 7am) as one possibility. Another example it gives is three bands: an evening peak (4pm to 7pm), night (midnight to 7am) and “shoulder” periods either side. Ofgem says this would be the easiest option to put in place and would give the most consistent experience, with the same default day and night split whichever supplier you’re with. It also says this option would be the least future-proof.
Option 2: different caps for different types of use
Ofgem would set several time-of-use cap levels for groups with different usage patterns, such as an electric vehicle level and possibly heat pump or solar levels, alongside a central one. Ofgem says most current static time-of-use customers are on Economy 7, so Economy 7 could be the basis for the central level. The challenges Ofgem names are identifying which customers belong in which group, and homes that have several technologies at once.
Option 3: tariff-specific assessment
Ofgem calls this a “build your own cap” approach. Ofgem would publish half-hourly cost inputs, suppliers would apply a demand profile for the customers on each tariff, and Ofgem would check the result. Ofgem says this option reflects costs most accurately but is the most complex, and would need much closer checks to make sure customers are treated fairly.
Timeline
| Stage | Timing given by Ofgem |
|---|---|
| Call for input opened | 12 October 2026 |
| Deadline for responses | 20 November 2026 |
| Responses reviewed and published | Spring 2027 |
| Further consultation and engagement | First half of 2027 |
| Aim for “incremental change” to the time-of-use approach | Second half of 2027 |
Separately, Ofgem says it aims to update the single-rate demand profile and wholesale allowance in spring 2027, with a consultation planned for later this year. It adds that timings depend on market conditions and other priorities.
How to respond
Ofgem says it wants to hear from anyone interested, and lists consumers, charities and consumer groups as well as suppliers. Email your response to priceprotectionpolicy@ofgem.gov.uk by 20 November 2026. The paper doesn’t ask set questions, but Ofgem would like views on which option you prefer and why, and on any practical issues. It will publish non-confidential responses, and you can ask for all or part of your response to be kept confidential.
What it could mean for Economy 7 households
For now, nothing changes. The current multi-register cap still applies, and Ofgem has not proposed any new rates or said what any option would cost particular households. Based only on what the paper says:
- Under option 1, default Economy 7 day and night rates would be set by Ofgem, so they would be the same split across suppliers rather than each supplier choosing its own.
- Under option 2, Economy 7 could be the basis of the central time-of-use cap, with separate levels for other kinds of use.
- Under any option, Ofgem would need a new usage profile for multi-rate customers to replace profile classes.
We haven’t estimated whether bills would go up or down, because Ofgem hasn’t published figures for any option. In the meantime, check that Economy 7 still suits how you use energy with our Economy 7 explained guide, and compare a fixed deal against the cap using your own usage in our fix vs price cap calculator. Ofgem is also testing a different idea in its lower standing charge tariff pilot.
FAQ
Has Ofgem changed the Economy 7 price cap?
No. This is a call for input that sets out options for discussion. Ofgem says it will publish a further consultation in 2027 before any change.
What is the multi-register cap?
It’s the price cap level for tariffs with more than one unit rate, mainly Economy 7. Suppliers’ weighted average rates must be at or below it. For Economy 7, the weighting is 52% off-peak and 48% peak.
When could any change happen?
Ofgem says its initial plan is to aim for incremental change to the time-of-use approach by the second half of 2027. It says timings depend on wider priorities.
Can I respond as a household?
Yes. Ofgem lists consumers among those who should respond. Email priceprotectionpolicy@ofgem.gov.uk by 20 November 2026.
Would my day and night rates be fixed by Ofgem?
Only under option 1, which would set the unit rate for each time band. Options 2 and 3 would leave suppliers to set their own rates within a cap. Ofgem has not chosen an option.
Sources
- Ofgem, Energy price cap: updating the time-of-use methodology (call for input page, published 12 October 2026, checked 15 October 2026)
- Ofgem, Energy price cap: Updating the time-of-use methodology (call for input PDF, 12 October 2026, checked 15 October 2026)
