Key messages for domestic customers in England, Wales and Scotland
A new Government Energy Price Guarantee has been announced to provide households with short-term support with the cost of energy.
The Government Energy Price Guarantee will ensure that the average GB household pays no more than £2,500 a year for their energy bill from 1 October. The Government Energy Bill Guarantee limits the amount you can be charged per unit of gas or electricity so your exact bill will be influenced by how much energy you consume.
The Energy Price Guarantee essentially functions as a discount on the existing Energy Price Cap, which is a safeguard for customers that determines the maximum price energy suppliers can charge for a variable tariff, based on wholesale energy costs.
Given that wholesale prices have gone through the roof in the current energy crisis, the Energy Price Guarantee is designed to keep the cap lower than it otherwise would be. (Without the Energy Price Guarantee, the price cap would only limit the average annual variable tariff bill to £3,549).
The main points to be aware of at this time are:
• You do not need to apply for the Government Energy Price Guarantee and there’s no need to contact your supplier.
• Customers on a fixed tariff will also receive the same level of price reduction as those on standard variable tariffs, but what they pay is dependent on the rate they fixed at.
• This is in addition to the £400 EBSS payments. This will continue to be paid from October.
See link for further details: https://www.gov.uk/guidance/getting-the-energy-bills-support-scheme-discount
• The most vulnerable customers will also continue to receive £1,200 of support provided in instalments. Other financial support, like the Warm Home Discount, will continue.
Latest Government advice is that the EPG scheme is set to be reviewed in April 2023
Domestic customers – additional info
If you are on a Pre Payment Meter:
• The Government Energy Price Guarantee will be applied to the rate you pay for each unit of energy, so the money you put on the meter will last longer than would otherwise have been the case this winter.
• It will take a bit longer to apply the EPG to your key/meter and the EPG rate will apply from 1 November.
• During October, your current rate (which is below the EPG) will continue to apply.
Government Support Link:
Energy bills support - GOV.UK (www.gov.uk)