On the 8th September, Prime Minister Liz Truss announced a series of measures to support people and businesses with their energy bills.
The Energy Price Guarantee (EPG) will provide financial relief for British households and businesses, whilst also tackling problems in the energy market by boosting domestic supply.
The EPG will apply from the 1st October and will supersede the price cap agreed between Ofgem and energy retailers.
The package is expected to boost growth and curb inflation by up to five percentage points.
How will this affect domestic gas and electricity customers?
Under the plans announced today, a typical household will pay no more than £2,500 a year for the next two years. This supersedes the existing price cap (£1,971 since April 22) and the new price cap (£3,549 due October 22), saving customers around £1,000 a year. The EPG comes in addition to the £400 Energy Bills Support Scheme (EBSS) and takes account of temporarily suspending green levies, worth around £150.
How will this affect business energy customers?
During her speech, Truss vowed to provide “equivalent support” to businesses and public bodies over the next six months. We understand this will come in the form of a price cap, which will limit the price suppliers can charge for the cost of energy. It’s understood the cap will come into effect from the 1st October and will stay in place for six months. The cap will be reviewed after three months, to consider extended support for businesses most in need – with restaurants and pubs cited as examples.
How will this affect heat network customers?
During the announcement, Truss mentioned that those who do not pay direct for mains gas and electricity – such as households connected to heat networks – will be no worse off and will receive financial support through a new fund.
To date, no details have been released on how and when heat network customers will be able to access this support, however we have been told to expect an announcement this Autumn.
What’s next for our customers?
Our energy managers will continue to monitor announcements from the government and energy regulator. Consultations are ongoing, and we ask that our clients bear with us whilst we await further detail. We will be in touch with all clients as and when details of the new initiatives are released.