A new energy price guarantee has been announced by the Government to provide certainty around the cost of energy bills.
From 1 October 2022, a typical household will pay no more than £2,500 per year for each of the next two years. This will save a typical household £1,000 a year and is in addition to the £400 energy bill support scheme.
A fund will also be set up for households that will not directly benefit from the new scheme, this includes those on standard gas and electricity contracts.
The energy price guarantee replaces the existing Ofgem energy price cap, due to reach £3,549 per year for an average household from 1 October.
There will be a temporary removal of green levies on household bills, worth around £150.
Support for businesses
There will also be support for businesses, charities and public sector organisations, with an equivalent guarantee for six months. After six months, the Government will provide further support to vulnerable sectors such as hospitality, including local pubs.
The Business Secretary will work with businesses to review where this extended support will be targeted, it is anticipated this review will be concluded within three months.