The energy price cap

Energy price cap demonstrated via a Yorkshire wind farm

Preparing for the October 1st energy price changes

In response to global energy price increases the Government has introduced an Energy Price Guarantee (EPG) which caps the unit cost of gas and electricity. The Guarantee is in addition to other support, for example the £400 Energy Support Scheme, the £300 Pensioner Cost of Living Payment, the Winter Fuel Allowance and more. 

Note: The Energy Price Guarantee will be in place until April 2023. A Treasury-led review will be launched to consider how to support households with energy bills from April 2023. 

  1. October 1st - Energy Price Guarantee introduced - submit your meter reading
    In response to global energy price increases, from October 1st the price of your energy will increase, so households who are not on a smart meter, or on a fixed contract, should submit a meter reading within a few days of that date.
    1. Check with your supplier when they will accept your reading, most will accept readings for a few days either side of the 1st, for example EDF advise you need to submit from September 30 to October 7
    2. If you have a smart meter you do not need to submit a reading
    3. If you are on a fixed term contract you do not need to submit a reading
       
  2. The Energy Price Guarantee - is a cap on the unit cost of energy
    1. The cap is based on an average annual bill being set at £2,500 for a typical household which pays by Direct Debit, and the cap, whilst lowering the unit cost of energy for everyone, means your annual energy bill could still be more, or less, than depending on the amount of energy you use
    2. As the cap, is a cap on the cost of a unit of energy, not on the bill itself it still makes sense to be economical with your energy use
    3. The way you pay also affects the Energy Price Guarantee; customers on prepayment meters pay an additional £59 annually compared to those on direct debit, and those paying by standard credit (cash or cheque) pay an additional £215 annually, reflecting the higher cost for energy suppliers to serve them. 
       
  3. From October, households will receive the first instalment of their £400 Energy Bills Support Scheme (£66)
    1. The £400 energy grant will be provided automatically, you need to do nothing
    2. The grant will be split into 6 instalments over 6 months starting in October 2022, with an initial payment of (£66)
    3. Some suppliers will pay the grant by reducing a customer's Direct Debit
    4. The grant does not need to be repaid.
       
  4. You do not need to contact your energy supply about the energy cap or the £400 grant  
    1. For most the cap and grant will be automatically applied from October 1st. The exact timing of this will vary depending on how often your energy company raises a bill  
    2. Customers on prepayment meters will receive vouchers for the £400 grant, so make sure your details are up-to-date with your supplier. Your vouchers can be claimed at Paypoints or Post Offices. This varies depending on your supplier. The cap on charges, under the Energy Price Guarantee will be applied to prepayment customers automatically. 
       
  5. Be aware of scams 
    1. Several constituents have reported messages and emails telling them they are eligible for the energy bill rebate and need to apply. As above, the Government support packages are applied automatically – so any messages stating you need to take action in claiming the rebate are likely to be fraudulent. People should contact their energy supplier if they’re in doubt and report any scams to Action Fraud. 

General advice for households: 

  • If you are finding it hard to pay your gas or electricity bill, contact your energy supplier - whilst there is no need to contact suppliers to receive the Government support packages – energy suppliers are the first port of call if you think you can’t pay your bill. Every supplier has a range of support, for example via a repayment plan, and can help you find the best sources of independent advice for your needs.
  • Check whether you are eligible for the Priority Services Register – additional support is available for people who are disabled, recovering from an injury, are pregnant, have extra communication needs, have reached state pension age and other eligibility factors. Find out more here.

Government support - more information

UK households who need most help, will receive up to £1,200 of support provided via various schemes over the year.. 

Useful links 

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