In short: Ofgem published a call for input on 12 October 2026 on how the price cap should work for time-of-use tariffs. It sets out three broad options, including one that could create an EV variant of the cap. Responses close on 20 November 2026, and Ofgem plans a further consultation next year. Nothing changes for bills yet.
What Ofgem has published
The regulator’s call for input looks at the part of the price cap that covers tariffs with different unit rates at different times of day. Ofgem calls this the “multi-register” cap.
Today, Ofgem sets a single cap level for all multi-register tariffs, though it varies by payment type. Suppliers can set different rates for different time bands, as long as the average, weighted by demand in each band, is at or below the cap.
Ofgem says the cap was set when there were few time-of-use offers apart from Economy 7. With more people using electric cars and heat pumps, and the move to market-wide half-hourly settlement, it expects costs to vary more between customers. It says there may be differences between time-of-use customers, giving EV and heat pump customers as examples, that mean some pay above their cost and others below.
The three options
Ofgem’s call for input document sets out three broad options:
- Simple time-of-use. A two- or three-band tariff with prescribed unit rates for each time band, effectively a cap for each band.
- Type of use caps. Separate cap variants based on different demand profiles. Ofgem gives the example of a central time-of-use cap plus an EV variant and a heat pump variant.
- Tariff specific assessment. Ofgem would set pricing parameters, and suppliers would apply their own demand profile for a group of customers to work out a cap level for that group. Ofgem describes this as a “build your own cap” approach.
Ofgem says option 3 is the most cost reflective but the most complex to design and run. It says the main challenge with option 2 is identifying the right customers for each group and estimating how they use electricity.
What it means for EV drivers
For now, nothing. This is an early stage paper, and Ofgem says it does not ask specific questions. It wants views on the options, their design and how they would work in practice.
Most smart EV tariffs are not default tariffs, so the cap does not set their rates directly. The review matters more in the longer term, for what happens to customers who end up on a default time-of-use tariff, and for how the cap shapes the wider market.
Ofgem says it intends to issue a further consultation next year with a clearer direction and a more developed methodology.
How to respond
Ofgem lists energy suppliers, industry bodies, consumer groups, charities and consumers among those who should respond. Responses go to priceprotectionpolicy@ofgem.gov.uk by 20 November 2026.
For the current cap rates, see our price cap explainer for EV drivers.
Sources
- Energy price cap: updating the time-of-use methodology, Ofgem, 12 October 2026
- Call for input document (PDF), Ofgem, 12 October 2026
Last checked: 19 October 2026
Image credit: NoahLovesNesquick via Wikimedia Commons, CC BY-SA 4.0, cropped.
