The Chancellor of the Exchequer has announced today that the Energy Price Guarantee (which had been scheduled to last for two years) will now be limited to 6 months.

He has announced a review to look at what support will be applied after April 2023 – signalling a ‘new approach’ was required, targeting those most in need.

Until then, the price guarantee (the ‘cap’) remains in place, which means that for a typical household, an annual bill will be around £2,500. For those who use more energy, the bill will be higher because it is the unit cost of energy that is capped – not the overall bill.

Similarly for those using less energy, the bill will be less.

The £400 grant being paid in 6 monthly instalments from October 2022 remains in place.

If you’re worried about your energy bills this winter – please don’t worry alone. Call us for free on 0800 988 2881 to find out more about how we can help you.

We can help with:

• Energy efficiency to to reduce bills
• Grants and funding for energy efficiency measures
• Grants for broken heating systems
• Help with fuel bills and energy debt
• Billing issues with your supplier

Call us for free on 0800 988 2881

Don’t worry alone

Government Support for Household Energy Bills

The UK Government recently announced measures to support households with the cost of their energy bills this winter, to ease the pressure from the global rise in energy prices.

From 1st October, the Energy Price Guarantee will mean a typical UK household will pay an average of £2,500 a year on their energy bills for the next two years. This is automatic and applies to all households.

This will save the average household at least £1,000 a year based on current energy prices from October.

In addition to this, households will benefit from a £400 discount on their energy bills via the Energy Bills Support Scheme.

About the Energy Bills Support Scheme

The Energy Bills Support Scheme is a Government scheme which provides a £400 non-repayable discount to eligible households in Great Britain to help with their energy bills over winter 2022 to 2023. You won’t have to pay it back.

You’ll get the £400 in six instalments starting from October 2022. You’ll get:

• • £66 in October and November
  • £67 in December, January, February and March

You’ll get the discount monthly, even if you pay for your energy quarterly or use a payment card. Your electricity supplier should provide more guidance on the scheme before it starts. If you have not received your first instalment by the end of October 2022, you need to contact your energy supplier.

Messaging to traditional prepayment meter customers

You will receive the Energy Bills Support Scheme discount from the first week of each month between October 2022 and March 2023.

Your supplier should have your contact details, but if you’re not sure or you don’t receive any information from them, you should check that they have your latest number and email.

You’ll get the discount automatically in one of the following ways, as:

• • Redeemable vouchers, sent by SMS text, email or post
  • An automatic credit when you top up at your usual top up point

Your electricity supplier will let you know in advance how you will get your discount.

If you get vouchers you’ll need to redeem them at a top-up point. Your supplier will tell you where to redeem them, for example at a Post Office branch or a PayPoint shop.

Payzone outlets are unable to accept the vouchers.

To find out more, visit the Energy Bills Support Scheme on gov.uk.

You might be wondering why you are paying more for your energy…

Simple answer: The energy price cap increased. On the first of April this year the energy price cap increased by 54%.

What is a price cap? 

This is the limit on how much a supplier can charge for the gas or electricity per unit. This is to ensure that you aren’t overcharged for your energy by your supplier.

How is this worked out?

On a six-month basis, Ofgem (which is a regulatory body supervising the operation of the gas and electricity industry) work out the average costs a supplier must pay to get energy to the consumer. To ensure you get a fair price energy companies must charge the cap or below the capped price.

Why has the cap increased? 

This is due to the wholesale price of fuel, which increased for several reasons; these include the harsh winter in Europe, the recent conflict in Ukraine disrupting supply channels and producers not sufficiently increasing production to meet demand.

SO WHAT CAN YOU DO? 

Here are some small simple tips that can help you lower your energy bills:

• Turn off the heating – as we come into summer it’s naturally getting warmer so remember to switch it off in the warmer months
• Wash your clothes at a lower temperature – this doesn’t just save on your energy it saves your clothes too!
• Dry your clothes outside – now that it’s warmer let the sun do the work rather than the tumble dryer.

For loads more tips look through our other posts or visit our Warmer Homes West Midlands YouTube channel where we have short videos with practical tips.

SO WHAT CAN YOU DO? 

We can support you in various ways:

• You can call our freephone number 0808 196 8298 and receive information, advice and guidance from one of our qualified energy advisors.
• Our community outreach staff can visit you in your home and carry out an energy check with you including the installation of energy efficiency measures.
• We can also explain any grants and additional support you might be able eligible for depending on your individual circumstances and the existing energy performance of your property.