Three rounds of matches will be played in the four-team group stages at club grounds before a double header semi-final at the Millennium Stadium on the weekend of 4th-5th March 2006 and the final at Twickenham Stadium on the weekend of April 8th-9th 2006.
The BBC has committed to a four-year deal and this year will show at least four matches from the group stages across its network and both semi-finals and the final.
A second competition, the Powergen National Trophy, will involve 118 teams from the English leagues structure in National Division One and below.
The Powergen Intermediate Cup and Powergen Junior Vase are unchanged with all finals to be played at Twickenham in April as part of Powergen Finals Day. The Powergen Shield ceases to exist.
Powergen have agreed a deal to sponsor all four competitions in a partnership with the Rugby Football Union and Premier Rugby Ltd.
RFU Chief Executive Francis Baron said: "This agreement is a step forward for both unions and their clubs and regions. With the semi-finals at the Millennium Stadium and a final at Twickenham to look forward to, this is an exciting new development for this historic tournament."
WRU Chief Executive Steven Lewis said: "The great thing about this tournament is that it will rekindle traditional rivalries between the teams and supporters from both countries which will certainly bring an extra buzz and edge to the games. There is already a great deal of anticipation for the competition here in Wales."
RFU Commercial Director Paul Vaughan said: "The deal is an excellent one for all the parties involved. The entry of the four Welsh regions to the Powergen Cup will add extra interest to the competition and the Powergen National Trophy will be highly competitive with an increased opportunity for National Division teams to reach Twickenham.
"The Powergen Cup has a long history spread over 30 years and while we wanted to make some changes to it to maximise interest, revenue and attendances, it was essential that the basic criteria of a knockout competition remained."
Terry Burwell, RFU Community Rugby and Operations Director, added: "We now have in place four robust and competitive tournaments for all levels of the game. We have worked encouragingly with all our partners to produce a forward-thinking structure which is well-funded and upholds the unique nature of Cup finals day."
Premier Rugby Commercial Director Jon Varney said: "We are delighted that all parties have confirmed their involvement in the new Powergen Cup. The tournament is an exciting one and we look forward to renewing traditional rivalries between the elite clubs in England and the Welsh regions.
"The new Powergen Cup is far stronger commercially and this will benefit not only our clubs and the Welsh regions, but also the Rugby Football Union and the clubs below Guinness Premiership level who will receive an improved contribution from the new competition structure.
"In addition, the Powergen Cup gives us an additional terrestrial platform for our clubs and the game in general via matches on BBC Grandstand, BBC Wales and S4C.
"Powergen's commitment to this new tournament further strengthens the relationship built on the foundation of our excellent work together as a partner of England Rugby and on the record-breaking Powergen National Rugby Community Programme."
Powergen's Sponsorship Manager Mike Thompson said: "Powergen is delighted to be extending its support of rugby union for the 2005/6 season. The introduction of the Welsh regional teams will inject further interest and marks an exciting new era in the history of the tournament.
"Our commitment is to all levels of the game. The highly successful Powergen National Rugby Community Programme is a key focus for our sponsorship and we are excited to be continuing our relationship with Premier Rugby, and working together to introduce more children into the game."
BBC Head of Rugby Philip Bernie said: "The BBC is delighted to have this exciting competition on both Grandstand and BBC Wales. The new look Powergen Cup promises to bring some excellent contests to our screens, and we look forward to showcasing the best rugby talent in England and Wales."
Powergen Cup Groups
Group A
Bath
Bristol
Gloucester
Ospreys
Group B
London Irish
London Wasps
Cardiff Blues
Saracens
Group C
Leeds Tykes
Llanelli Scarlets
Newcastle Falcons
Sale Sharks
Group D
Newport-Gwent Dragons
Leicester Tigers
Worcester Warriors
Northampton Saints
Powergen Cup Fixtures
Powergen Cup Round 1: September 30th-October 2nd
Group A
Saturday October 1st - Gloucester v Ospreys (1430) BBC 1 Network (Grandstand)
Bath v Bristol TBC
Group B
Saturday October 1st - Cardiff Blues v Saracens (1730) S4C
London Irish v London Wasps TBC
Group C
Sunday October 2nd - Leeds Tykes v Llanelli Scarlets (1700) BBC Wales
Newcastle Falcons v Sale Sharks TBC
Group D
Friday September 30th - Newport-Gwent Dragons v Leicester (1910) BBC Wales
Worcester Warriors v Northampton Saints TBC
Round 2: October 7th-9th
Group A
Sunday October 9th - Ospreys v Bath (1635) S4C
Bristol v Gloucester TBC
Group B
Friday October 7th - London Wasps v Cardiff Blues (1940) BBC Wales
Saracens v London Irish TBC
Group C
Sunday October 9th - Llanelli Scarlets v Newcastle (1430) BBC 2 Network (Grandstand)
Sale Sharks v Leeds Tykes TBC
Group D
Saturday October 8th - Northampton Saints v Newport-Gwent Dragons (1800) S4C
Leicester Tigers v Worcester Warriors TBC
Round 3
December 2nd-4th
Group A
Bath v Gloucester
Bristol v Ospreys
Group B
London Irish v Cardiff Blues
London Wasps v Saracens
Group C
Leeds Tykes v Newcastle Falcons
Llanelli Scarlets v Sale Sharks
Group D
Newport-Gwent Dragons v Worcester Warriors
Leicester Tigers v Northampton Saints
Powergen Cup Semi-finals
March 4th or 5th Millennium Stadium
Powergen Cup Final
April 8th or 9th Twickenham Stadium