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brand__border-color" href="/web/20221209091812/https://www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy"> <span class="gem-c-organisation-logo__name">Department for<br>Business, Energy<br>& Industrial Strategy</span> </a> </div> </li> </ul> </div> <header class="gem-c-inverse-header gem-c-inverse-header--padding-top "> <div class="gem-c-title gem-c-title--inverse govuk-!-margin-top-8 govuk-!-margin-bottom-0"> <span class="govuk-caption-xl gem-c-title__context"> Policy paper </span> <h1 class="gem-c-title__text govuk-heading-xl"> Energy Price Guarantee </h1> </div> <p class="publication-header__last-changed">Updated 29 November 2022</p> </header> <div class="sidebar-with-body" id="contents"> <div class="govuk-grid-row"> <div class="govuk-grid-column-one-quarter-from-desktop contents-list-container"> <nav class="gem-c-contents-list" aria-label="Contents" role="navigation" data-module="gem-track-click"> <h2 class="gem-c-contents-list__title"> Contents </h2> <ol class="gem-c-contents-list__list"> <li class="gem-c-contents-list__list-item gem-c-contents-list__list-item--numbered"> <a class="gem-c-contents-list__link govuk-link govuk-link--no-underline" data-track-category="contentsClicked" data-track-action="content_item 1" data-track-label="#how-the-energy-price-guarantee-is-applied-to-energy-bills-in-great-britain" data-track-options="{"dimension29":"How the Energy Price Guarantee is applied to energy bills in Great Britain"}" href="#how-the-energy-price-guarantee-is-applied-to-energy-bills-in-great-britain">How the Energy Price Guarantee is applied to energy bills in Great Britain</a> </li> <li class="gem-c-contents-list__list-item gem-c-contents-list__list-item--numbered"> <a class="gem-c-contents-list__link govuk-link govuk-link--no-underline" data-track-category="contentsClicked" data-track-action="content_item 2" data-track-label="#energy-price-guarantee-rates-in-great-britain" data-track-options="{"dimension29":"Energy Price Guarantee rates in Great Britain"}" href="#energy-price-guarantee-rates-in-great-britain">Energy Price Guarantee rates in Great Britain</a> </li> <li class="gem-c-contents-list__list-item gem-c-contents-list__list-item--numbered"> <a class="gem-c-contents-list__link govuk-link govuk-link--no-underline" data-track-category="contentsClicked" data-track-action="content_item 3" data-track-label="#how-the-energy-price-guarantee-will-be-applied-to-energy-bills-in-northern-ireland" data-track-options="{"dimension29":"How the Energy Price Guarantee will be applied to energy bills in Northern Ireland"}" href="#how-the-energy-price-guarantee-will-be-applied-to-energy-bills-in-northern-ireland">How the Energy Price Guarantee will be applied to energy bills in Northern Ireland</a> </li> <li class="gem-c-contents-list__list-item gem-c-contents-list__list-item--numbered"> <a class="gem-c-contents-list__link govuk-link govuk-link--no-underline" data-track-category="contentsClicked" data-track-action="content_item 4" data-track-label="#if-you-pay-for-your-energy-as-part-of-your-rent" data-track-options="{"dimension29":"If you pay for your energy as part of your rent"}" href="#if-you-pay-for-your-energy-as-part-of-your-rent">If you pay for your energy as part of your rent</a> </li> <li class="gem-c-contents-list__list-item gem-c-contents-list__list-item--numbered"> <a class="gem-c-contents-list__link govuk-link govuk-link--no-underline" data-track-category="contentsClicked" data-track-action="content_item 5" data-track-label="#other-energy-affordability-schemes" data-track-options="{"dimension29":"Other energy affordability schemes"}" href="#other-energy-affordability-schemes">Other energy affordability schemes</a> </li> </ol> </nav> <div class="gem-c-print-link govuk-!-display-none-print govuk-!-margin-top-0 govuk-!-margin-bottom-6"> <button class="govuk-link govuk-body-s gem-c-print-link__button" data-module="ga4-event-tracker print-link" data-ga4-event="{"event_name":"print_page","type":"print page","index":1,"index_total":1,"section":"Content"}">Print this page</button> </div> </div> <div class="print-wrapper"> <div class="print-meta-data"> <p> <img class="print-meta-data-licence" src="/web/20221209091812im_/https://www.gov.uk/assets/government-frontend/open-government-licence-min-93b6a51b518ff99714a1aa2a7d2162735c155ec3cb073c75fb88b2a332fa83d3.png"> </p> <p> © Crown copyright 2022 </p> <p> This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit <a href="http://web.archive.org/web/20221209091812/https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3">nationalarchives.gov.uk/doc/open-government-licence/version/3</a> or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: <a href="http://web.archive.org/web/20221209091812/mailto:psi@nationalarchives.gov.uk">psi@nationalarchives.gov.uk</a>. </p> <p> Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. </p> <p> This publication is available at https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022 </p> </div> </div> <div class="main-content-container"> <div class="gem-c-govspeak-html-publication"> <div class="gem-c-govspeak govuk-govspeak " data-module="govspeak"> <div class="govspeak"> <p>The Energy Price Guarantee protects customers from increases in energy costs by limiting the amount suppliers can charge per unit of energy used. It currently brings a typical household energy bill in Great Britain for dual-fuel gas and electricity down to around £2,500 per year, and in Northern Ireland to around £1,950 per year.</p> <div class="call-to-action"> <p><strong>Update: 29 November 2022</strong></p> <p>We have published new unit rates for electricity and gas under the Energy Price Guarantee for the period January to March 2023.</p> </div> <p>Energy suppliers will be fully compensated by the government for the savings delivered to households.</p> <p>The scheme operates, for the most part, in the same way for households across the whole of the UK. There are a few differences for those in Northern Ireland because of the different way the Northern Ireland energy market operates.</p> <h2 id="how-the-energy-price-guarantee-is-applied-to-energy-bills-in-great-britain">How the Energy Price Guarantee is applied to energy bills in Great Britain</h2> <p>The Energy Price Guarantee reduces (compared to the undiscounted price of energy) the amount you can be charged per unit of gas or electricity, to an annual equivalent of around £2,500 for a typical household in Great Britain.</p> <p>Energy bills will still be higher or lower depending on how much energy is used - for example energy bills will still be lower for in a well-insulated home that uses less energy.</p> <p>You do not need to apply, and there is no need to contact your energy supplier, the discount is automatic.</p> <div role="note" aria-label="Information" class="application-notice info-notice"> <p>If you get a message telling you that you need to apply, or asking for your bank or credit card details, this could be a scam. You can <a href="http://web.archive.org/web/20221209091812/https://www.gov.uk/report-suspicious-emails-websites-phishing" class="govuk-link">report messages you think are suspicious</a>.</p> </div> <p>This winter (1 October 2022 to 31 March 2023) the Energy Price Guarantee is saving a typical household in Great Britain around £900, compared to undiscounted energy prices under the price cap.</p> <p>As announced in the <a href="http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/autumn-statement-2022-documents/autumn-statement-2022-html" class="govuk-link">2022 Autumn Statement</a>, the Energy Price Guarantee will be extended from April 2023 until April 2024. Over this period a typical household bill in Great Britain will be reduced to around £3,000. Based on projections of the undiscounted price of energy, this is expected to save the typical household in Great Britain around £500.</p> <h3 id="ofgem-price-cap"> <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr> Price Cap</h3> <p>For 1 January to 31 March 2023, the <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr> Energy Price Cap level will increase to £4,279. This is not what a typical household will pay for their energy. The Energy Price Guarantee will continue to protect households and customers by keeping a bill for a typical household in Great Britain to around £2,500 (annual equivalent).</p> <h2 id="energy-price-guarantee-rates-in-great-britain">Energy Price Guarantee rates in Great Britain</h2> <h3 id="if-youre-on-a-standard-variable-tariff">If you’re on a standard variable tariff</h3> <p>The average unit price for dual fuel customers on standard variable tariffs subject to <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr>’s price cap, paying by direct debit, is limited to:</p> <ul> <li>34.0p/<abbr title="kilowatt-hour">kWh</abbr> (pence per kilowatt hour) for electricity and 10.3p/<abbr title="kilowatt-hour">kWh</abbr> for gas, inclusive of VAT, from 1 October 2022 through to March 2023</li> </ul> <p>These are average unit prices, but the specific unit rates each customer sees will vary by region and payment type. See the full list of rates by region and payment type:</p> <ul> <li>for <a href="http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-price-guarantee-regional-rates/energy-price-guarantee-regional-rates" class="govuk-link">October to December 2022</a> </li> <li>for <a href="http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-price-guarantee-regional-rates/energy-price-guarantee-regional-rates-january-to-march-2023" class="govuk-link">January to March 2023</a> </li> </ul> <p>From January the level of government support will increase to account for increases in the <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr> Price Cap, to keep a typical bill in Great Britain at around £2,500 (yearly equivalent).</p> <h3 id="if-youre-on-a-variable-tariff-not-subject-to-the-price-cap">If you’re on a variable tariff not subject to the price cap</h3> <p>Variable tariffs which were not subject to <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr>’s price cap (which are known as having a derogation), for instance certain 100% renewable energy tariffs, will receive the full unit rate discount:</p> <ul> <li>from October-December 2022, unit rate discount of 17p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 4.2p/<abbr title="kilowatt-hour">kWh</abbr> for gas</li> <li>from January 2023 reductions of 31.8p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 6.4p/<abbr title="kilowatt-hour">kWh</abbr> for gas <sup id="fnref:1" role="doc-noteref"><a href="#fn:1" class="govuk-link" rel="footnote">[footnote 1]</a></sup> </li> </ul> <p>If originally priced at a higher level than <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr>’s price cap, then the resulting unit rates will be above the standard variable unit rates.</p> <h3 id="if-youre-on-a-pre-payment-meter-and-variable-contract">If you’re on a pre-payment meter and variable contract</h3> <p>Prepayment meter customers will continue to receive the full unit rate discount:</p> <ul> <li>from October to December 2022, 17p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 4.2p/<abbr title="kilowatt-hour">kWh</abbr> for gas</li> <li>from January to March 2023, 31.8p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 6.4p/<abbr title="kilowatt-hour">kWh</abbr> for gas</li> </ul> <p>The Energy Price Guarantee will be applied to the rate you pay for each unit of energy, so the money you put on the meter will last longer than would otherwise have been the case this winter.</p> <p>There is no need to apply and you won’t need any vouchers for the Energy Price Guarantee. The discount will be applied automatically by your supplier.</p> <h3 id="if-youre-on-a-fixed-rate-tariff">If you’re on a fixed rate tariff</h3> <p>Fixed rate tariff customers will have the same support as those on variable tariffs, but rates are subject to a ‘floor’ price (the minimum rate the price per unit will be discounted to). The floor prices exist because some people will have fixed at much lower prices some time ago, meaning their payments will already be below the level set by the Energy Price Guarantee.</p> <p>For fixed rate tariffs that currently have unit rates above the floor price, these unit price reductions apply:</p> <ul> <li>up to 17p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 4.2p/<abbr title="kilowatt-hour">kWh</abbr> for gas for October to December 2022</li> <li>up to 31.8p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 6.4p/<abbr title="kilowatt-hour">kWh</abbr> for gas from January to March 2023</li> </ul> <p>The floor unit prices vary by region and payment type but for electricity average at 34p/<abbr title="kilowatt-hour">kWh</abbr> and for gas average at 10.3p/<abbr title="kilowatt-hour">kWh</abbr> for direct debit customers in Great Britain with typical energy consumption. These floor prices remain unchanged from 1 October 2022 through to 31 March 2023.</p> <p>Customers on fixed rate tariffs that are already below the floor unit rate will remain on those low rates but will not receive a further discount for the duration of their fixed term.</p> <p>A small number of consumers who fixed at very high rates will receive the full unit rate discount:</p> <ul> <li>17p/<abbr title="kilowatt-hour">kWh</abbr> of electricity and 4.2p/<abbr title="kilowatt-hour">kWh</abbr> of gas between October and December 2022</li> <li>31.8p/<abbr title="kilowatt-hour">kWh</abbr> of electricity and 6.4p/<abbr title="kilowatt-hour">kWh</abbr> of gas for January to March 2023</li> </ul> <p>However, given the higher starting point, their high fixed rate tariffs may still have a unit rate that is above the <abbr title="Energy Price Guarantee">EPG</abbr> rates.</p> <p>Any transfer to a different tariff is a matter for suppliers.</p> <h3 id="standing-charges">Standing charges</h3> <p>Average standing charges for customers on default tariffs will remain capped in line with the levels set (in Great Britain) by <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr> for the default tariff cap from 1 October 2022 to 31 March 2023, at 46p per day for electricity and 28p per day for gas, for a typical dual fuel customer paying by direct debit.</p> <h2 id="how-the-energy-price-guarantee-will-be-applied-to-energy-bills-in-northern-ireland">How the Energy Price Guarantee will be applied to energy bills in Northern Ireland</h2> <p>For customers in Northern Ireland, the Energy Price Guarantee reduces the amount you can be charged per unit of gas or electricity, so a typical household in Northern Ireland using electricity and gas as their main fuels will pay an annual equivalent of around £1,950.</p> <p>The scheme in Northern Ireland will operate broadly as described for Great Britain, however there are some differences because of the different way the electricity and gas markets operate in Northern Ireland.</p> <p>As the scheme was introduced from 1 November 2022 in Northern Ireland (1 October in Great Britain), households in Northern Ireland will receive backdated support to cover for October 2022 in the form of an increased unit rate discount:</p> <ul> <li>from October 2022 to December 2022 the unit rate discount will be up to 19.9p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 4.8p/<abbr title="kilowatt-hour">kWh</abbr> for gas</li> <li>from January 2023 to March 2023 the unit price discount will be up to 13.6p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 3.9p/<abbr title="kilowatt-hour">kWh</abbr> for gas <sup id="fnref:2" role="doc-noteref"><a href="#fn:2" class="govuk-link" rel="footnote">[footnote 2]</a></sup> </li> </ul> <p>These discounts will result in a typical household bill, for a house using electricity and mains gas, in Northern Ireland remaining at an annual equivalent of around £1,950 from 1 November 2022 through to 31 March 2023.</p> <p>However, energy prices are not capped in Northern Ireland and energy suppliers have the flexibility to set their tariffs independently to reflect their costs of operating. Regardless of where a supplier sets their tariffs, these Energy Price Guarantee discounts will apply, but are subject to a ‘floor’ price (the minimum a household must pay) of 1p/<abbr title="kilowatt-hour">kWh</abbr>.</p> <p>As in Great Britain, the Energy Price Guarantee in Northern Ireland reduces the amount households pay per unit of gas or electricity, so your exact bill amount will continue to be influenced by how much energy you use.</p> <h2 id="if-you-pay-for-your-energy-as-part-of-your-rent">If you pay for your energy as part of your rent</h2> <p>Your landlord will benefit from the Energy Price Guarantee if they have a domestic electricity and/or gas contract with a licensed electricity and/or gas supplier and should reflect this in the price they charge you from 1 October. Similarly, they will receive the Energy Bills Support Scheme and should pass it on to you. We have legislated to ensure this happens.</p> <p>Your landlord should pass on the discount irrespective of how you pay for your energy use. If they charge you based on your usage, they must do this at the same price as they pay, including the Energy Price Guarantee (see <a rel="external" href="http://web.archive.org/web/20221209091812/https://www.ofgem.gov.uk/sites/default/files/docs/2005/10/11782-resaleupdateoct05_3.pdf" class="govuk-link"><abbr title="Office of Gas and Electricity Markets">Ofgem</abbr>’s guidance on ensuring customers are being charged no more than they should</a>). If, on the other hand, you pay an “all inclusive” rent incorporating a fixed charge for energy use, your landlord should pass the Energy Price Guarantee to you if provided for in your tenancy agreement.</p> <p>If your landlord has a non-domestic contract, they may benefit from the <a href="http://web.archive.org/web/20221209091812/https://www.gov.uk/guidance/energy-bill-relief-scheme-help-for-businesses-and-other-non-domestic-customers" class="govuk-link">Energy Bill Relief Scheme</a> depending on when they signed the contract. If so, they should pass the savings on to you.</p> <h2 id="other-energy-affordability-schemes">Other energy affordability schemes</h2> <p>The <abbr title="Energy Price Guarantee">EPG</abbr> is in addition to a number of other ways the government is helping people with their energy bills.</p> <h3 id="alternative-fuel-payment---for-those-who-dont-use-mains-gas">Alternative Fuel Payment - for those who don’t use mains gas</h3> <p>The Alternative Fuel Payment (<abbr title="Alternative Fuel Payment">AFP</abbr>) will provide a £200 payment to UK households that use alternative fuels for heating instead of mains gas. This includes, for example, heating oil, <abbr title="Liquefied Petroleum Gas">LPG</abbr>, coal, and biomass. The details of when this payment will be made will be confirmed shortly. The government is committed to delivering this support to customers as fast as possible.</p> <h3 id="energy-bills-support-scheme">Energy Bills Support Scheme</h3> <p>The <a href="http://web.archive.org/web/20221209091812/https://www.gov.uk/guidance/getting-the-energy-bills-support-scheme-discount" class="govuk-link">Energy Bills Support Scheme</a> provides a further £400 universal support for UK households this winter.</p> <h3 id="energy-bills-relief-scheme">Energy Bills Relief Scheme</h3> <p>The Energy Bills Relief Scheme provides help for businesses, charities and public sector organisations this winter:</p> <ul> <li><a href="http://web.archive.org/web/20221209091812/https://www.gov.uk/guidance/energy-bill-relief-scheme-help-for-businesses-and-other-non-domestic-customers" class="govuk-link">in Great Britain</a></li> <li><a href="http://web.archive.org/web/20221209091812/https://www.gov.uk/guidance/energy-bill-relief-scheme-help-for-businesses-and-other-non-domestic-customers-northern-ireland" class="govuk-link">in Northern Ireland</a></li> </ul> <h3 id="other-help">Other help</h3> <p>Find out what other payments are available that can <a rel="external" href="http://web.archive.org/web/20221209091812/https://helpforhouseholds.campaign.gov.uk/help-with-your-bills/" class="govuk-link">help with your energy bills</a>.</p> <div class="footnotes" role="doc-endnotes"> <ol> <li id="fn:1" role="doc-endnote"> <p>Energy billing often works to three decimal places. The discount rates to three decimal places in Great Britain will be 31.840p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 6.424p/<abbr title="kilowatt-hour">kWh</abbr> for gas. <a href="#fnref:1" class="govuk-link" role="doc-backlink" aria-label="go to where this is referenced">↩</a></p> </li> <li id="fn:2" role="doc-endnote"> <p>Energy billing often works to three decimal places. The discount rates to three decimal places in Northern Ireland will be 13.608p/<abbr title="kilowatt-hour">kWh</abbr> for electricity and 3.893p/<abbr title="kilowatt-hour">kWh</abbr> for gas. <a href="#fnref:2" class="govuk-link" role="doc-backlink" aria-label="go to where this is referenced">↩</a></p> </li> </ol> </div> </div> </div> </div> </div> </div> <div class="govuk-grid-row"> <a class="govuk-link app-c-back-to-top dont-print" href="#contents"> <svg class="app-c-back-to-top__icon" xmlns="http://www.w3.org/2000/svg" width="13" height="17" viewbox="0 0 13 17" aria-hidden="true" focusable="false"> <path fill="currentColor" d="M6.5 0L0 6.5 1.4 8l4-4v12.7h2V4l4.3 4L13 6.4z"></path> </svg> Back to top </a> </div> </div> </main> </div> <div class="govuk-width-container"> <div class="gem-c-feedback govuk-!-display-none-print" data-module="feedback ga4-event-tracker"> <div class="gem-c-feedback__prompt gem-c-feedback__js-show js-prompt" tabindex="-1"> <div class="gem-c-feedback__prompt-content"> <div class="gem-c-feedback__prompt-questions js-prompt-questions" hidden> <div class="gem-c-feedback__prompt-question-answer"> <h2 class="gem-c-feedback__prompt-question">Is this page useful?</h2> <ul class="gem-c-feedback__option-list"> <li class="gem-c-feedback__option-list-item govuk-visually-hidden" style="display: none" hidden> <a class="gem-c-feedback__prompt-link" data-track-category="yesNoFeedbackForm" data-track-action="ffMaybeClick" role="button" style="display: none" hidden="hidden" aria-hidden="true" href="/web/20221209091812/https://www.gov.uk/contact/govuk"> Maybe </a> </li> <li class="gem-c-feedback__option-list-item"> <button class="govuk-button gem-c-feedback__prompt-link js-page-is-useful" data-track-category="yesNoFeedbackForm" data-track-action="ffYesClick" data-ga4-event="{"event_name":"form_submit","type":"feedback","text":"Yes", "section": "Is this page useful?"}"> Yes <span class="govuk-visually-hidden">this page is useful</span> </button> </li> <li class="gem-c-feedback__option-list-item"> <button class="govuk-button gem-c-feedback__prompt-link js-toggle-form js-page-is-not-useful" data-track-category="yesNoFeedbackForm" data-track-action="ffNoClick" aria-controls="page-is-not-useful" aria-expanded="false" data-ga4-event="{"event_name":"form_submit","type":"feedback","text":"No", "section": "Is this page useful?"}"> No <span class="govuk-visually-hidden">this page is not useful</span> </button> </li> </ul> </div> </div> <div class="gem-c-feedback__prompt-questions gem-c-feedback__prompt-success js-prompt-success" role="alert" hidden> Thank you for your feedback </div> <div class="gem-c-feedback__prompt-questions gem-c-feedback__prompt-questions--something-is-wrong js-prompt-questions" hidden> <button class="govuk-button gem-c-feedback__prompt-link js-toggle-form js-something-is-wrong" data-track-category="Onsite Feedback" data-track-action="GOV-UK Open Form" aria-controls="something-is-wrong" aria-expanded="false" data-ga4-event="{"event_name":"form_submit","type":"feedback","text":"Report a problem with this page", "section": "Is this page useful?"}"> Report a problem with this page </button> </div> </div> </div> <form action="/web/20221209091812/https://www.gov.uk/contact/govuk/problem_reports" id="something-is-wrong" class="gem-c-feedback__form js-feedback-form" data-track-category="Onsite Feedback" data-track-action="GOV.UK Send Form" method="post" hidden> <div class="govuk-grid-row"> <div class="govuk-grid-column-two-thirds"> <div class="gem-c-feedback__error-summary gem-c-feedback__js-show js-errors" tabindex="-1" hidden></div> <input type="hidden" name="url" value="https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022"> <h3 class="gem-c-feedback__form-heading">Help us improve GOV.UK</h3> <p id="feedback_explanation" class="gem-c-feedback__form-paragraph">Don’t include personal or financial information like your National Insurance number or credit card details.</p> <div class="govuk-visually-hidden" aria-hidden="true"> <label for="giraffe">This field is for robots only. 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"http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#how-the-energy-price-guarantee-is-applied-to-energy-bills-in-great-britain", "acceptedAnswer": { "@type": "Answer", "url": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#how-the-energy-price-guarantee-is-applied-to-energy-bills-in-great-britain", "text": "\u003cp\u003eThe Energy Price Guarantee reduces (compared to the undiscounted price of energy) the amount you can be charged per unit of gas or electricity, to an annual equivalent of around £2,500 for a typical household in Great Britain.\u003c/p\u003e\u003cp\u003eEnergy bills will still be higher or lower depending on how much energy is used - for example energy bills will still be lower for in a well-insulated home that uses less energy.\u003c/p\u003e\u003cp\u003eYou do not need to apply, and there is no need to contact your energy supplier, the discount is automatic.\u003c/p\u003e\u003cdiv role=\"note\" aria-label=\"Information\" class=\"application-notice info-notice\"\u003e\n\u003cp\u003eIf you get a message telling you that you need to apply, or asking for your bank or credit card details, this could be a scam. You can \u003ca href=\"https://www.gov.uk/report-suspicious-emails-websites-phishing\" class=\"govuk-link\"\u003ereport messages you think are suspicious\u003c/a\u003e.\u003c/p\u003e\n\u003c/div\u003e\u003cp\u003eThis winter (1 October 2022 to 31 March 2023) the Energy Price Guarantee is saving a typical household in Great Britain around £900, compared to undiscounted energy prices under the price cap.\u003c/p\u003e\u003cp\u003eAs announced in the \u003ca href=\"https://www.gov.uk/government/publications/autumn-statement-2022-documents/autumn-statement-2022-html\" class=\"govuk-link\"\u003e2022 Autumn Statement\u003c/a\u003e, the Energy Price Guarantee will be extended from April 2023 until April 2024. Over this period a typical household bill in Great Britain will be reduced to around £3,000. Based on projections of the undiscounted price of energy, this is expected to save the typical household in Great Britain around £500.\u003c/p\u003e\u003ch3 id=\"ofgem-price-cap\"\u003e\n\u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e Price Cap\u003c/h3\u003e\u003cp\u003eFor 1 January to 31 March 2023, the \u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e Energy Price Cap level will increase to £4,279. This is not what a typical household will pay for their energy. The Energy Price Guarantee will continue to protect households and customers by keeping a bill for a typical household in Great Britain to around £2,500 (annual equivalent).\u003c/p\u003e" } }, { "@type": "Question", "name": "Energy Price Guarantee rates in Great Britain", "url": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#energy-price-guarantee-rates-in-great-britain", "acceptedAnswer": { "@type": "Answer", "url": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#energy-price-guarantee-rates-in-great-britain", "text": "\u003ch3 id=\"if-youre-on-a-standard-variable-tariff\"\u003eIf you’re on a standard variable tariff\u003c/h3\u003e\u003cp\u003eThe average unit price for dual fuel customers on standard variable tariffs subject to \u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e’s price cap, paying by direct debit, is limited to:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003e34.0p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e (pence per kilowatt hour) for electricity and 10.3p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas, inclusive of VAT, from 1 October 2022 through to March 2023\u003c/li\u003e\n\u003c/ul\u003e\u003cp\u003eThese are average unit prices, but the specific unit rates each customer sees will vary by region and payment type. See the full list of rates by region and payment type:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003efor \u003ca href=\"https://www.gov.uk/government/publications/energy-price-guarantee-regional-rates/energy-price-guarantee-regional-rates\" class=\"govuk-link\"\u003eOctober to December 2022\u003c/a\u003e\n\u003c/li\u003e\n \u003cli\u003efor \u003ca href=\"https://www.gov.uk/government/publications/energy-price-guarantee-regional-rates/energy-price-guarantee-regional-rates-january-to-march-2023\" class=\"govuk-link\"\u003eJanuary to March 2023\u003c/a\u003e\n\u003c/li\u003e\n\u003c/ul\u003e\u003cp\u003eFrom January the level of government support will increase to account for increases in the \u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e Price Cap, to keep a typical bill in Great Britain at around £2,500 (yearly equivalent).\u003c/p\u003e\u003ch3 id=\"if-youre-on-a-variable-tariff-not-subject-to-the-price-cap\"\u003eIf you’re on a variable tariff not subject to the price cap\u003c/h3\u003e\u003cp\u003eVariable tariffs which were not subject to \u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e’s price cap (which are known as having a derogation), for instance certain 100% renewable energy tariffs, will receive the full unit rate discount:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003efrom October-December 2022, unit rate discount of 17p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 4.2p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas\u003c/li\u003e\n \u003cli\u003efrom January 2023 reductions of 31.8p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 6.4p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas \u003csup id=\"fnref:1\" role=\"doc-noteref\"\u003e\u003ca href=\"#fn:1\" class=\"govuk-link\" rel=\"footnote\"\u003e[footnote 1]\u003c/a\u003e\u003c/sup\u003e\n\u003c/li\u003e\n\u003c/ul\u003e\u003cp\u003eIf originally priced at a higher level than \u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e’s price cap, then the resulting unit rates will be above the standard variable unit rates.\u003c/p\u003e\u003ch3 id=\"if-youre-on-a-pre-payment-meter-and-variable-contract\"\u003eIf you’re on a pre-payment meter and variable contract\u003c/h3\u003e\u003cp\u003ePrepayment meter customers will continue to receive the full unit rate discount:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003efrom October to December 2022, 17p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 4.2p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas\u003c/li\u003e\n \u003cli\u003efrom January to March 2023, 31.8p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 6.4p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas\u003c/li\u003e\n\u003c/ul\u003e\u003cp\u003eThe Energy Price Guarantee will be applied to the rate you pay for each unit of energy, so the money you put on the meter will last longer than would otherwise have been the case this winter.\u003c/p\u003e\u003cp\u003eThere is no need to apply and you won’t need any vouchers for the Energy Price Guarantee. The discount will be applied automatically by your supplier.\u003c/p\u003e\u003ch3 id=\"if-youre-on-a-fixed-rate-tariff\"\u003eIf you’re on a fixed rate tariff\u003c/h3\u003e\u003cp\u003eFixed rate tariff customers will have the same support as those on variable tariffs, but rates are subject to a ‘floor’ price (the minimum rate the price per unit will be discounted to). The floor prices exist because some people will have fixed at much lower prices some time ago, meaning their payments will already be below the level set by the Energy Price Guarantee.\u003c/p\u003e\u003cp\u003eFor fixed rate tariffs that currently have unit rates above the floor price, these unit price reductions apply:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003eup to 17p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 4.2p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas for October to December 2022\u003c/li\u003e\n \u003cli\u003eup to 31.8p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 6.4p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas from January to March 2023\u003c/li\u003e\n\u003c/ul\u003e\u003cp\u003eThe floor unit prices vary by region and payment type but for electricity average at 34p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e and for gas average at 10.3p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for direct debit customers in Great Britain with typical energy consumption. These floor prices remain unchanged from 1 October 2022 through to 31 March 2023.\u003c/p\u003e\u003cp\u003eCustomers on fixed rate tariffs that are already below the floor unit rate will remain on those low rates but will not receive a further discount for the duration of their fixed term.\u003c/p\u003e\u003cp\u003eA small number of consumers who fixed at very high rates will receive the full unit rate discount:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003e17p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e of electricity and 4.2p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e of gas between October and December 2022\u003c/li\u003e\n \u003cli\u003e31.8p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e of electricity and 6.4p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e of gas for January to March 2023\u003c/li\u003e\n\u003c/ul\u003e\u003cp\u003eHowever, given the higher starting point, their high fixed rate tariffs may still have a unit rate that is above the \u003cabbr title=\"Energy Price Guarantee\"\u003eEPG\u003c/abbr\u003e rates.\u003c/p\u003e\u003cp\u003eAny transfer to a different tariff is a matter for suppliers.\u003c/p\u003e\u003ch3 id=\"standing-charges\"\u003eStanding charges\u003c/h3\u003e\u003cp\u003eAverage standing charges for customers on default tariffs will remain capped in line with the levels set (in Great Britain) by \u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e for the default tariff cap from 1 October 2022 to 31 March 2023, at 46p per day for electricity and 28p per day for gas, for a typical dual fuel customer paying by direct debit.\u003c/p\u003e" } }, { "@type": "Question", "name": "How the Energy Price Guarantee will be applied to energy bills in Northern Ireland", "url": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#how-the-energy-price-guarantee-will-be-applied-to-energy-bills-in-northern-ireland", "acceptedAnswer": { "@type": "Answer", "url": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#how-the-energy-price-guarantee-will-be-applied-to-energy-bills-in-northern-ireland", "text": "\u003cp\u003eFor customers in Northern Ireland, the Energy Price Guarantee reduces the amount you can be charged per unit of gas or electricity, so a typical household in Northern Ireland using electricity and gas as their main fuels will pay an annual equivalent of around £1,950.\u003c/p\u003e\u003cp\u003eThe scheme in Northern Ireland will operate broadly as described for Great Britain, however there are some differences because of the different way the electricity and gas markets operate in Northern Ireland.\u003c/p\u003e\u003cp\u003eAs the scheme was introduced from 1 November 2022 in Northern Ireland (1 October in Great Britain), households in Northern Ireland will receive backdated support to cover for October 2022 in the form of an increased unit rate discount:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003efrom October 2022 to December 2022 the unit rate discount will be up to 19.9p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 4.8p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas\u003c/li\u003e\n \u003cli\u003efrom January 2023 to March 2023 the unit price discount will be up to 13.6p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 3.9p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas \u003csup id=\"fnref:2\" role=\"doc-noteref\"\u003e\u003ca href=\"#fn:2\" class=\"govuk-link\" rel=\"footnote\"\u003e[footnote 2]\u003c/a\u003e\u003c/sup\u003e\n\u003c/li\u003e\n\u003c/ul\u003e\u003cp\u003eThese discounts will result in a typical household bill, for a house using electricity and mains gas, in Northern Ireland remaining at an annual equivalent of around £1,950 from 1 November 2022 through to 31 March 2023.\u003c/p\u003e\u003cp\u003eHowever, energy prices are not capped in Northern Ireland and energy suppliers have the flexibility to set their tariffs independently to reflect their costs of operating. Regardless of where a supplier sets their tariffs, these Energy Price Guarantee discounts will apply, but are subject to a ‘floor’ price (the minimum a household must pay) of 1p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e.\u003c/p\u003e\u003cp\u003eAs in Great Britain, the Energy Price Guarantee in Northern Ireland reduces the amount households pay per unit of gas or electricity, so your exact bill amount will continue to be influenced by how much energy you use.\u003c/p\u003e" } }, { "@type": "Question", "name": "If you pay for your energy as part of your rent", "url": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#if-you-pay-for-your-energy-as-part-of-your-rent", "acceptedAnswer": { "@type": "Answer", "url": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#if-you-pay-for-your-energy-as-part-of-your-rent", "text": "\u003cp\u003eYour landlord will benefit from the Energy Price Guarantee if they have a domestic electricity and/or gas contract with a licensed electricity and/or gas supplier and should reflect this in the price they charge you from 1 October. Similarly, they will receive the Energy Bills Support Scheme and should pass it on to you. We have legislated to ensure this happens.\u003c/p\u003e\u003cp\u003eYour landlord should pass on the discount irrespective of how you pay for your energy use. If they charge you based on your usage, they must do this at the same price as they pay, including the Energy Price Guarantee (see \u003ca rel=\"external\" href=\"https://www.ofgem.gov.uk/sites/default/files/docs/2005/10/11782-resaleupdateoct05_3.pdf\" class=\"govuk-link\"\u003e\u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e’s guidance on ensuring customers are being charged no more than they should\u003c/a\u003e). If, on the other hand, you pay an “all inclusive” rent incorporating a fixed charge for energy use, your landlord should pass the Energy Price Guarantee to you if provided for in your tenancy agreement.\u003c/p\u003e\u003cp\u003eIf your landlord has a non-domestic contract, they may benefit from the \u003ca href=\"https://www.gov.uk/guidance/energy-bill-relief-scheme-help-for-businesses-and-other-non-domestic-customers\" class=\"govuk-link\"\u003eEnergy Bill Relief Scheme\u003c/a\u003e depending on when they signed the contract. If so, they should pass the savings on to you.\u003c/p\u003e" } }, { "@type": "Question", "name": "Other energy affordability schemes", "url": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#other-energy-affordability-schemes", "acceptedAnswer": { "@type": "Answer", "url": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#other-energy-affordability-schemes", "text": "\u003cp\u003eThe \u003cabbr title=\"Energy Price Guarantee\"\u003eEPG\u003c/abbr\u003e is in addition to a number of other ways the government is helping people with their energy bills.\u003c/p\u003e\u003ch3 id=\"alternative-fuel-payment---for-those-who-dont-use-mains-gas\"\u003eAlternative Fuel Payment - for those who don’t use mains gas\u003c/h3\u003e\u003cp\u003eThe Alternative Fuel Payment (\u003cabbr title=\"Alternative Fuel Payment\"\u003eAFP\u003c/abbr\u003e) will provide a £200 payment to UK households that use alternative fuels for heating instead of mains gas. This includes, for example, heating oil, \u003cabbr title=\"Liquefied Petroleum Gas\"\u003eLPG\u003c/abbr\u003e, coal, and biomass. The details of when this payment will be made will be confirmed shortly. The government is committed to delivering this support to customers as fast as possible.\u003c/p\u003e\u003ch3 id=\"energy-bills-support-scheme\"\u003eEnergy Bills Support Scheme\u003c/h3\u003e\u003cp\u003eThe \u003ca href=\"https://www.gov.uk/guidance/getting-the-energy-bills-support-scheme-discount\" class=\"govuk-link\"\u003eEnergy Bills Support Scheme\u003c/a\u003e provides a further £400 universal support for UK households this winter.\u003c/p\u003e\u003ch3 id=\"energy-bills-relief-scheme\"\u003eEnergy Bills Relief Scheme\u003c/h3\u003e\u003cp\u003eThe Energy Bills Relief Scheme provides help for businesses, charities and public sector organisations this winter:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003e\u003ca href=\"https://www.gov.uk/guidance/energy-bill-relief-scheme-help-for-businesses-and-other-non-domestic-customers\" class=\"govuk-link\"\u003ein Great Britain\u003c/a\u003e\u003c/li\u003e\n \u003cli\u003e\u003ca href=\"https://www.gov.uk/guidance/energy-bill-relief-scheme-help-for-businesses-and-other-non-domestic-customers-northern-ireland\" class=\"govuk-link\"\u003ein Northern Ireland\u003c/a\u003e\u003c/li\u003e\n\u003c/ul\u003e\u003ch3 id=\"other-help\"\u003eOther help\u003c/h3\u003e\u003cp\u003eFind out what other payments are available that can \u003ca rel=\"external\" href=\"https://helpforhouseholds.campaign.gov.uk/help-with-your-bills/\" class=\"govuk-link\"\u003ehelp with your energy bills\u003c/a\u003e.\u003c/p\u003e\u003cdiv class=\"footnotes\" role=\"doc-endnotes\"\u003e\n \u003col\u003e\n \u003cli id=\"fn:1\" role=\"doc-endnote\"\u003e\n \u003cp\u003eEnergy billing often works to three decimal places. The discount rates to three decimal places in Great Britain will be 31.840p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 6.424p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas. \u003ca href=\"#fnref:1\" class=\"govuk-link\" role=\"doc-backlink\" aria-label=\"go to where this is referenced\"\u003e↩\u003c/a\u003e\u003c/p\u003e\n \u003c/li\u003e\n \u003cli id=\"fn:2\" role=\"doc-endnote\"\u003e\n \u003cp\u003eEnergy billing often works to three decimal places. The discount rates to three decimal places in Northern Ireland will be 13.608p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for electricity and 3.893p/\u003cabbr title=\"kilowatt-hour\"\u003ekWh\u003c/abbr\u003e for gas. \u003ca href=\"#fnref:2\" class=\"govuk-link\" role=\"doc-backlink\" aria-label=\"go to where this is referenced\"\u003e↩\u003c/a\u003e\u003c/p\u003e\n \u003c/li\u003e\n \u003c/ol\u003e\n\u003c/div\u003e" } } ] } </script><script type="application/ld+json"> { "@context": "http://web.archive.org/web/20221209091812/http://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "item": { "name": "Home", "@id": "http://web.archive.org/web/20221209091812/https://www.gov.uk/" } }, { "@type": "ListItem", "position": 2, "item": { "name": "Housing, local and community", "@id": "http://web.archive.org/web/20221209091812/https://www.gov.uk/housing-local-and-community" } }, { "@type": "ListItem", "position": 3, "item": { "name": "Household energy", "@id": "http://web.archive.org/web/20221209091812/https://www.gov.uk/housing-local-and-community/household-energy" } }, { "@type": "ListItem", "position": 4, "item": { "name": "Energy bills support", "@id": "http://web.archive.org/web/20221209091812/https://www.gov.uk/government/publications/energy-bills-support" } } ] } </script> </body> </html> <!-- FILE ARCHIVED ON 09:18:12 Dec 09, 2022 AND RETRIEVED FROM THE INTERNET ARCHIVE ON 22:02:46 Dec 04, 2024. 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