The Energy Price Guarantee
Posted 13 September 2022
On 8 September 2022
The Government announced The Energy Price Guarantee, which comes into force on 1 October. This limits the amount consumers can be charged per unit of gas or electricity, so individual bills will still vary based on how much energy is used. But this will still give protection from the jump in costs predicted in October.
The Energy Price Guarantee means that an average household bill will not be more than £2,500 per year. The amount that can be charged per unit is capped as are the standing charges.
If you are on a fixed tariff which is more than the capped amounts from October, you will have a reduction in charges.
If you are on a pre-payment meter, again you will benefit from The Energy Price Guarantee. Although the figures for prepayment customers do not yet seem to be available, it has been announced that the cost will be higher than those for customers on credit meters.
No action is required by consumers, all of the adjustments should be made automatically.
For those who are ‘off-grid’ (such as park homes) there will be a new discretionary scheme to help. There do not seem to be any details available on this scheme yet.
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