Your prices will be changing from 1 October. The UK government has announced the Energy Price Guarantee to support with the cost of energy for 2 years. We know despite government support you may still struggle to afford your energy. We encourage anyone in this position to get in touch, and we can work together to find a solution.
The Energy Price Guarantee will replace the October price cap. Prices were expected to rise to over £3,500 a year, but the guarantee will make sure the average household pays no more than £2,500 a year for energy from 1 October.
The Energy Price Guarantee limits the amount you’ll be charged per unit of gas and electricity. There is nothing you need to do – we will automatically calculate your new prices and let you know what they are.
It’s not an absolute cap on your energy spend, so the more energy you use, the more you will pay. That’s why we will always do as much as we can to help you reduce your usage.
You can read more about the Energy Price Guarantee at GOV.UK.
We will confirm your price change in writing in September – and we will let you know if there’s a cheaper tariff available for you. What you pay will still be based on how much energy you use, but the Energy Price Guarantee limits the amount you can be charged per unit of gas or electricity.
The Energy Price Guarantee had been announced to support households through these extreme rises in costs, making sure the average household pays no more than £2,500 a year for energy from 1 October.
These are national average wholesale costs, taken from Ofgem’s price cap model and based on current Ofgem medium TDCVs (Typical Domestic Consumption Values) of 2,900kWh/year for standard unrestricted electricity customers and 12,000kWh/year for gas customers.
The Energy Supply Taskforce has been launched. They will be negotiating to agree longer term affordable energy contracts as well as working with renewable energy producers.
HM Treasury have announced the Energy Markets Financing Scheme, working with the Bank of England. They are working on making the energy market more stable to reduce the cost for customers.
The government are also taking steps to increase the supply of energy. These steps include getting cleaner energy, making changes to regulations in the market, and making it easier for developers to get access to gas in certain areas.
You can read more about these plans at GOV.UK.
While we take the time to understand our customers and listen to them, we know empathy doesn’t pay the bills - and the government needs to do more. Our message has always been that there are already struggling households that need so much more help. Support should be focused on the lowest-income households, so they don’t have to face the awful choice of heating or eating.
- Supporting 270,000 Priority Services Register customers via our Extra Care team.
- Adding a Savings feature to the My Utilita app so you can put money aside every time they top-up over the summer in readiness for when the colder months hit.
Helping millions of households shave £££s of their energy spend via our Energy High 5 campaign.
- Increased our financial support to £15m – we provide additional support credit on average 2,200 times a day.
- Expanding our number of Energy Hubs, providing face-to-face support, particularly to vulnerable people with no internet access.
What is the Energy Price Guarantee?
With wholesale costs reaching unprecedented levels, the government have stepped in and announced the new Energy Price Guarantee to help households with energy costs for the next 2 years.The Energy Price Guarantee will replace the October price cap. Prices were expected to rise to over £3,500 a year, but the guarantee will make sure the average household pays no more than £2,500 a year for energy from 1 October.
The Energy Price Guarantee limits the amount you’ll be charged per unit of gas and electricity. There is nothing you need to do – we will automatically calculate your new prices and let you know what they are.
It’s not an absolute cap on your energy spend, so the more energy you use, the more you will pay. That’s why we will always do as much as we can to help you reduce your usage.
You can read more about the Energy Price Guarantee at GOV.UK.
How will my prices be affected?
The Energy Price Guarantee will still mean that your prices change but it will make sure the average household pays no more than £2,500 a year. There is nothing you need to do – we will calculate your prices automatically and let you know how your costs will be affected.We will confirm your price change in writing in September – and we will let you know if there’s a cheaper tariff available for you. What you pay will still be based on how much energy you use, but the Energy Price Guarantee limits the amount you can be charged per unit of gas or electricity.
Why is the energy price cap going up?
The global gas market has been hit by a perfect storm of surging demand, as Covid restrictions have eased, and a fall in supply - driven primarily by Russia cutting gas supplies to Europe. As a result, international gas prices have risen to unprecedented levels.The Energy Price Guarantee had been announced to support households through these extreme rises in costs, making sure the average household pays no more than £2,500 a year for energy from 1 October.
These are national average wholesale costs, taken from Ofgem’s price cap model and based on current Ofgem medium TDCVs (Typical Domestic Consumption Values) of 2,900kWh/year for standard unrestricted electricity customers and 12,000kWh/year for gas customers.What other government support is coming?
The Energy Price Guarantee will provide short term support. It will help with the cost of energy for 2 years. The government have also announced various initiatives to reduce energy costs in the longer term:The Energy Supply Taskforce has been launched. They will be negotiating to agree longer term affordable energy contracts as well as working with renewable energy producers.
HM Treasury have announced the Energy Markets Financing Scheme, working with the Bank of England. They are working on making the energy market more stable to reduce the cost for customers.
The government are also taking steps to increase the supply of energy. These steps include getting cleaner energy, making changes to regulations in the market, and making it easier for developers to get access to gas in certain areas.
You can read more about these plans at GOV.UK.
What we’re doing to help
We know that despite the announcement of the Energy Price Guarantee, many will still be struggling. We continue to do all we can to help customers through the cost-of-living crisis, providing financial support worth tens of millions of pounds and doubling the size of our Extra Care team. We’d also encourage anyone struggling to afford their bill to get in touch, so we can work together to find a solution.While we take the time to understand our customers and listen to them, we know empathy doesn’t pay the bills - and the government needs to do more. Our message has always been that there are already struggling households that need so much more help. Support should be focused on the lowest-income households, so they don’t have to face the awful choice of heating or eating.
- Supporting 270,000 Priority Services Register customers via our Extra Care team.
- Adding a Savings feature to the My Utilita app so you can put money aside every time they top-up over the summer in readiness for when the colder months hit.
Helping millions of households shave £££s of their energy spend via our Energy High 5 campaign.
- Increased our financial support to £15m – we provide additional support credit on average 2,200 times a day.
- Expanding our number of Energy Hubs, providing face-to-face support, particularly to vulnerable people with no internet access.
Last edited by Rebecca; 28-09-22 at 15:15.
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