The move comes as households continue cutting back on heating and power useRory Poulter14:25, 01 Jun 2026Millions of households are set to be told a £190 shift is coming to their energy bills.‌The apparent reduction is not being driven by cheaper energy, but rather by a change in the way regulator Ofgem calculates the "typical" household bill. Under the current system, the average annual dual-fuel bill was expected to climb to around £1,899 in October - roughly £140 higher than the previous year - according to forecasts from consultancy Cornwall Insight. However, Ofgem has significantly lowered its assumptions about how much gas and electricity a typical household consumes.‌As a result, the official "typical" annual bill figure for October will now be quoted at approximately £1,709 - around £190 less than it would previously have been. The development comes as households continue to cut back on heating and power usage following the energy crisis and years of rocketing bills.‌Ofgem stated that household energy consumption had "changed materially in recent years", attributing this to a combination of improved energy efficiency, "climatic changes" and "behavioural responses to affordability pressures".The regulator added that the new figures would "better reflect the most up-to-date domestic consumption behaviour".‌Under the revisions, Ofgem's benchmark for a medium-use gas customer will drop from 11,500kWh per year to 9,500kWh, while electricity use assumptions will decrease from 2,700kWh to 2,500kWh.Critics are expected to argue that the changes risk misleading consumers, as headline annual bill figures will appear lower even while unit prices keep climbing. Ofgem has openly recognised the risk that consumers might mistakenly interpret energy prices as dropping.‌In its decision document, the regulator conceded there was "a risk that headline bill figures could be misinterpreted as indicating falling prices, when in reality they reflect less consumption".The watchdog maintained the alteration was a "technical change" aimed at enhancing communication. It said: "We consider this is a technical change which supports clearer, more consistent communication of prices which better reflect the most up-to-date domestic consumption behaviour."Ofgem also argued the revised figures were necessary because existing assumptions "no longer provided the most representative view of typical household usage".Article continues belowThe regulator indicated there had been "broad support" from suppliers and industry groups for refreshing the calculations. Projections from Cornwall Insight reveal that under the previous assumptions, the October price cap would have stood at £1,899.44. Using the new reduced consumption assumptions, the equivalent figure falls to £1,709.20.Nevertheless, the actual unit rates households face are still anticipated to increase. Ofgem's own assessment shows the methodology adjustments will add approximately 0.19p per kWh to electricity rates and 0.07p per kWh to gas rates for typical direct debit customers.Ofgem has determined that all future price cap announcements will adopt the new revised calculations for energy consumption.