For the most up to date information on the Energy Price Guarantee, how this works, and what this looks like on your bills. Please follow this link here
What is the Energy Price Guarantee?
On the 8th September, PM Liz Truss announced a support package to mitigate the impact of wholesale gas prices causing huge spikes in the cost of energy across the UK, impacting everyone that is either not on a fixed tariff, or is soon to have their fixed tariff, come to an end.
The Energy Price Guarantee introduced by the government, effective as of 1st October 2022, will freeze energy costs for all UK households for the next 2 years, at a cost of £2,500 for an average household (based on average consumption using Ofgem figures of 12,000kWh for gas and 2,900kWh for electricity, for dual-fuel customers who pay by direct debit. You will pay less if using less, you will pay more if using more)
Does this mean that prices will be lower than what I'm paying now?
Not exactly, and I'll explain why.
It's important to remember that the current price cap level for 1st April 2022 to 30th September 2022 was set at £1,971 per year. This figure was created using the same figures above.
The Ofgem price cap, which has now been cancelled after government intervention, for 1st October was set to be £3,549. According to analyst Cornwall Insight’s predictions, this was expected to rise to as much as £5,386 by January 2023.
All UK households will still receive £400, spread over 6 monthly instalments, to help with the impact of rising costs of energy. The Energy Price Guarantee now means that this will be less of an impact should Ofgem's Price Cap have gone ahead for October, January and April, as this is now frozen at £2,500.
What support is available for me?
As mentioned briefly above, all UK households will receive £400 in total towards the costs of energy throughout the months of October to March, as part of the Energy Bills Support Scheme.
This will work differently depending on how you pay for your energy.
If you pay by Fixed Direct Debit, you'll receive the money automatically as a deduction to your monthly Direct Debit.
If you pay on receipt of the bill or by a regular cash payment, you'll see the money automatically applied as a credit to your energy account in the first week of each month. This will show as a credit in the payments section of your monthly bill.
If you have a Smart prepayment meter, you'll see the money credited directly to your meters as a top up in the first week of each month.
If you have a traditional prepayment meter, you'll be provided with vouchers in the first week of each month. For E.ON Next customers these will only be redeemable at the Post Office, not at all top-up locations.
These are still unprecedented times and the energy market is volatile. I understand that it can be difficult to manage costs both with energy, as well as the general costs of living increasing in all aspects of everyone's lives currently.
If you're having trouble paying your bills, or keeping up with the cost of your energy, please do speak to your supplier (whether that is us here at E.ON Next, or if you're with another supplier) extra support is available, and it's always best to speak about options that may be available to you.
Thanks everyone,
Pete 😊
What is the Energy Price Guarantee?
On the 8th September, PM Liz Truss announced a support package to mitigate the impact of wholesale gas prices causing huge spikes in the cost of energy across the UK, impacting everyone that is either not on a fixed tariff, or is soon to have their fixed tariff, come to an end.
The Energy Price Guarantee introduced by the government, effective as of 1st October 2022, will freeze energy costs for all UK households for the next 2 years, at a cost of £2,500 for an average household (based on average consumption using Ofgem figures of 12,000kWh for gas and 2,900kWh for electricity, for dual-fuel customers who pay by direct debit. You will pay less if using less, you will pay more if using more)
Does this mean that prices will be lower than what I'm paying now?
Not exactly, and I'll explain why.
It's important to remember that the current price cap level for 1st April 2022 to 30th September 2022 was set at £1,971 per year. This figure was created using the same figures above.
The Ofgem price cap, which has now been cancelled after government intervention, for 1st October was set to be £3,549. According to analyst Cornwall Insight’s predictions, this was expected to rise to as much as £5,386 by January 2023.
All UK households will still receive £400, spread over 6 monthly instalments, to help with the impact of rising costs of energy. The Energy Price Guarantee now means that this will be less of an impact should Ofgem's Price Cap have gone ahead for October, January and April, as this is now frozen at £2,500.
What support is available for me?
As mentioned briefly above, all UK households will receive £400 in total towards the costs of energy throughout the months of October to March, as part of the Energy Bills Support Scheme.
This will work differently depending on how you pay for your energy.
If you pay by Fixed Direct Debit, you'll receive the money automatically as a deduction to your monthly Direct Debit.
If you pay on receipt of the bill or by a regular cash payment, you'll see the money automatically applied as a credit to your energy account in the first week of each month. This will show as a credit in the payments section of your monthly bill.
If you have a Smart prepayment meter, you'll see the money credited directly to your meters as a top up in the first week of each month.
If you have a traditional prepayment meter, you'll be provided with vouchers in the first week of each month. For E.ON Next customers these will only be redeemable at the Post Office, not at all top-up locations.
These are still unprecedented times and the energy market is volatile. I understand that it can be difficult to manage costs both with energy, as well as the general costs of living increasing in all aspects of everyone's lives currently.
If you're having trouble paying your bills, or keeping up with the cost of your energy, please do speak to your supplier (whether that is us here at E.ON Next, or if you're with another supplier) extra support is available, and it's always best to speak about options that may be available to you.
Thanks everyone,
Pete 😊
Last edited by PeterT_EONNext; 06-10-22 at 14:04.
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