In the Autumn Statement of 17 November 2022, the UK government introduced the Energy Price Guarantee (EPG) to shield households from escalating energy costs. Initially, the EPG capped typical annual energy bills at £2,500 until April 2023, after which it was extended for a year with an increased cap of £3,000, aiming to save the average household £500.
Recent Developments
As of 1 July 2023, the EPG ceased providing discounts to households without pre-payment meters, as the Ofgem price cap fell below the EPG threshold. Consequently, these households were charged rates determined by the Ofgem price cap. For the period between 1 January and 31 March 2024, the Ofgem price cap was set at £1,928 for a typical household per year.
Upcoming Changes
Ofgem has announced that from 1 April to 30 June 2025, the energy price cap will increase by 6%, bringing the average annual bill for a typical household to £1,849. This adjustment reflects sustained high wholesale energy prices due to global factors.
Impact on Households
The actual amount you pay will depend on your energy consumption, location, and meter type. To manage your energy bills effectively, consider the following:
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Evaluate Fixed Tariffs: Switching to fixed energy deals may offer savings. Recent reports suggest that households could save up to £230 by opting for fixed tariffs.
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Seek Financial Assistance: If you're struggling with energy costs, reach out to your energy supplier. Many providers offer grants and assistance programs to support customers in need.
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Implement Energy-Saving Measures: Adopting energy-efficient practices can reduce consumption and lower bills. Resources like the Energy Saving Trust provide valuable tips on conserving energy.
Communication to Customers
Energy suppliers will communicate any changes affecting your bills in the coming weeks. It's advisable to review these communications carefully and consider available options to manage your energy expenses effectively.
For further assistance with your bills, please visit the official government guidance on energy bills support.
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