Latest on help with the cost of Energy

The energy price cap is set by Ofcom as a limit on the maximum amount suppliers can charge customers on standard tariffs for each unit of gas and electricity they use, and sets a maximum daily standing charge.

For a typical dual-fuel household paying by direct debit, the price cap is currently set at £4,279/year, expected to fall to £3,280 from 1 April.

The Government pays suppliers of gas and electricity to discount these rates under the price cap with the Energy Price Guarantee, so a consumer with typical use currently pays £2,500/year, but this is expected to rise to £3000/year from 1st April

In addition to this consumers should get a £400 discount directly from their supplier to help with energy bills over winter 2022 to 2023. This is called the Energy Bills Support Scheme (EBSS).

The change in the Energy Price Guarantee means the average household on direct debit with dual fuel will pay another £40.00/month, however the effect of ending the subsidy under the Energy Bills Support Scheme will in effect mean an overall rise of over £100.00/month.

Whilst the new Energy Price Guarantee is expected to last for the next 12 months, if Ofgem’s price cap falls below this level, households will pay the lower amount.

This is predicted to happen in July, with analysts Cornwall Insight forecasting the price cap to fall to £2,153 a year, and staying around that level when it changes again in October.