Ofgem keeps temporary unidentified gas allowance for October price cap

Ofgem has confirmed it will roll forward a temporary approach to the unidentified gas (UIG) allowance for the October to December 2026 price cap period, rather than land a permanent fix in time. The cap is a household tariff cap: business energy contracts sit outside it, and it does not set the price of CNG or LNG vehicle fuel. Ofgem

The temporary approach dates back to a decision Ofgem made in August 2025, adopted as a stopgap while a long-term methodology is worked out. That long-term approach won't be ready before the August 2026 cap update, which sets the October to December cap, so Ofgem will use the temporary methodology then, with a letter setting out how it's being rolled forward. A consultation on the permanent fix is pencilled in for Summer 2026, drawing on analysis from Xoserve, with Ofgem aiming, depending on consultation responses, to have it in place by the April 2027 cap period. Ofgem

Why this matters: this is a technical element of the household gas cap, so there is no direct change to depot or fleet fuelling costs. The Summer 2026 consultation is where the shape of the permanent method will start to become clear.