On 8th September, the Prime Minister, Rt Hon Liz Truss MP, announced that typical households would pay no more than £2,500 a year on gas and electricity bills from 1st October through the Energy Price Guarantee (EPG), which will last for two years.
This will be paired alongside the existing Energy Bill Support Scheme (EBSS), providing £400 worth of support to households, brought about by a temporary suspension of green levies on energy bills.
Households who do not pay for mains gas and electricity directly – such as those living in park homes or on heat networks – will receive support through a new fund.
The new guarantee will apply to all households in Great Britain, with the same level of support made available to Northern Ireland.
The government will also support businesses, charities and public sector organisations with their energy costs this winter, providing an equivalent six-month guarantee.
In addition, HM Treasury announced a joint scheme, working with the Bank of England, to address the liquidity requirements faced by energy firms operating in UK wholesale gas and/or electricity markets. The scheme will provide resilience to both energy and financial markets and the economy, as well as reducing the eventual cost for businesses and consumers.
In addition, the government also announced a new Energy Supply Taskforce to agree long-term contracts that reduce their charge price for energy and increase the security of its supply. The Chancellor of the Exchequer will set out the expected costs as part of the fiscal statement later this month.
The Department for Business, Energy & Industrial Strategy has produced a factsheet which outlines the Energy Price Guarantee support for households, and support for businesses and non-domestic consumers with energy bills.
More information can be found on the following links:
Written Ministerial Statement:
Cost of Living support: