The announcement and its deadline
Ofgem, the regulator responsible for gas and electricity markets in Great Britain, published a call for input on 12 October 2026 about the method used to calculate price-cap protection for tariffs with different rates at different times. It has invited evidence from energy suppliers, consumer organisations, charities and households, with responses due by 20 November. This is an examination of possible approaches, not a newly enacted requirement to switch tariffs or a promise that every household will be offered cheaper overnight electricity. The regulator says that the migration to market-wide half-hourly settlement and changes in how customers use power make existing multi-rate assumptions worth reviewing. People on ordinary single-rate tariffs should distinguish the review from Ofgem's already announced October-to-December price cap.
What is a time-of-use electricity tariff?
A time-of-use tariff charges different unit prices depending on when energy is used. Traditional examples include Economy 7, which offers cheaper electricity for a specified overnight window and a higher rate during other hours. More flexible offers may also reward shifting consumption out of periods when the network is most expensive. The actual clock times are contractual and can differ by supplier, meter or region. A low overnight price is not enough to judge value: a household that uses much of its electricity during expensive periods may spend more overall. Compare annual expected costs using your own consumption, not a marketing headline based on one attractive rate. Also check whether the offer is fixed or variable.
Why Ofgem is revisiting the calculation
The regulator points to market-wide half-hourly settlement, which enables energy use to be accounted for in more detailed intervals. As smart meters, electric vehicles, heat pumps and other technology spread, different households and suppliers may experience costs at different times. Existing simplified assumptions can become less representative. Ofgem has set out three broad options and is seeking evidence about the trade-offs before deciding whether formal changes are justified. It says the broader goal of consumer flexibility is connected with a cleaner electricity system by 2030. None of this determines the final option or the effective date for any revised cap. Those outcomes will require subsequent decisions and communication from the regulator.
The price cap does not cap your total bill
A common misunderstanding is that the frequently quoted annual cap is a maximum anybody can pay. In reality, the cap principally limits applicable unit rates and daily standing charges for covered default-tariff customers; actual bills still depend on consumption. Ofgem's current October-to-December 2026 benchmark is £1,723 a year for a typical dual-fuel household paying by Direct Debit in England, Scotland and Wales, up four per cent on the previous period. A large or poorly insulated home can pay considerably more; a small or efficient home can pay less. Fixed-tariff customers are not affected in the same manner. Any future multi-rate methodology would need to preserve transparent comparisons rather than encourage confusion between the benchmark and a household bill.
When off-peak pricing might help
Overnight rates may be attractive when a large share of your electricity use can move safely into lower-priced hours. A home charging an electric car could potentially schedule charging, subject to the charger's settings and the tariff conditions. Households with electric heating or a hot-water cylinder may also be able to shift some consumption, but must consider comfort, safety and equipment requirements. A renter with limited control over appliances might have far less flexibility. Avoid running high-risk appliances unattended purely to chase a discount, and never defeat electrical safeguards. A useful comparison should weigh both peak and off-peak consumption as well as standing charges and any exit fees.
A simple way to compare two offers
Start by obtaining recent electricity readings or your annual kilowatt-hour estimate. Split usage into peak and off-peak categories where your meter data allows. Multiply the units in each category by the applicable price, then add standing charges for the billing period. Repeat for the alternative tariff using its actual time windows and prices. Consider the possibility that household patterns change during winter. An apparent saving of several pence on nighttime units can disappear if the daytime rate increases enough. Suppliers may offer comparison information, but it is worth checking the calculations yourself or using a reputable comparison service that accepts multi-rate usage. The consultation does not replace existing customer protections.
Can people respond to Ofgem directly?
Yes. The official invitation explicitly welcomes consumers alongside industry bodies. Written responses are requested by 20 November 2026 at the contact address shown on Ofgem's consultation page. Useful evidence may include problems comparing rates, how well existing multi-rate offers suit low-income households, accessibility problems, and how standing charges interact with shifting consumption. Describe what has actually happened to you, rather than presenting untested assumptions as universal experience. Responses to a call for input may inform later proposals but do not necessarily become part of a final legislative consultation. Check the official page for any updated submission requirements before sending information.
What happens next for household bills?
Ofgem must first consider the evidence and decide whether to develop a detailed approach. Customers should keep their current tariff terms in view and check the upcoming quarterly cap announcement separately. The regulator's existing published schedule points to a November announcement for the January-to-March 2027 default-tariff cap, but this is not a promise about the outcome of the time-of-use review. Watch for proposals explaining how consumers using different electricity patterns will be compared and protected. The important question is not whether overnight electricity is inherently cheap, but whether the full set of rates and conditions works for your household over an entire billing year.