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href="/web/20220920134142/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 bills support factsheet: 8 September 2022 </h1> </div> <p class="publication-header__last-changed">Updated 9 September 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="#support-for-households" data-track-options="{"dimension29":"Support for households"}" href="#support-for-households">Support for households</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="#support-for-businesses-and-non-domestic-properties" data-track-options="{"dimension29":"Support for businesses and non-domestic properties"}" href="#support-for-businesses-and-non-domestic-properties">Support for businesses and non-domestic properties</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="#reform-to-address-long-term-issues-in-the-uks-energy-sector" data-track-options="{"dimension29":"Reform to address long-term issues in the UK’s energy sector"}" href="#reform-to-address-long-term-issues-in-the-uks-energy-sector">Reform to address long-term issues in the UK’s energy sector</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="#other-help" data-track-options="{"dimension29":"Other help"}" href="#other-help">Other help</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_name":"print_page","type":"Print this page","index":1,"index_total":1,"section":"Contents"}">Print this page</button> </div> </div> <div class="print-wrapper"> <div class="print-meta-data"> <p> <img class="print-meta-data-licence" src="/web/20220920134142im_/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/20220920134142/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/20220920134142/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 government has set out decisive action to support people and businesses with their energy bills, and tackle the root causes of the issues in the UK energy market through increased supply – ensuring the country is not left in the same position again.</p> <h2 id="support-for-households">Support for households</h2> <p>The government has announced the following immediate, short-term action to support households:</p> <h3 id="replacing-the-price-cap-with-a-new-energy-price-guarantee">Replacing the price cap with a new Energy Price Guarantee</h3> <p>The Energy Price Guarantee will ensure that a typical household in Great Britain pays an average £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.</p> <p>The consumer saving will be based on usage, but a typical household will save at least £1,000 a year (based on current prices from October). Energy suppliers will be fully compensated for the cost of the Energy Price Guarantee.</p> <p><strong>£150 of this £1,000 a year saving will be delivered by temporarily suspending green levies</strong>. These costs will be transferred to the Exchequer, so customers don’t bear the costs, but benefit from the low-carbon electricity generation.</p> <p><strong>This is in addition to the £400 Energy Bills Support Scheme</strong>. This will be paid in 6 instalments from October.</p> <p><strong>The most vulnerable UK households will also continue to receive £1,200 of support</strong> provided in instalments over the year.</p> <p><strong>An additional discretionary fund will be available for those households who are outside of the schemes</strong>. For example, households not on standard gas / electricity contracts.</p> <h3 id="how-the-energy-price-guarantee-will-be-applied-to-energy-bills">How the Energy Price Guarantee will be applied to energy bills</h3> <p>You do not need to apply, and there’s no need to contact your energy supplier.</p> <p>For consumers in England, Scotland and Wales who pay for their energy through a monthly, quarterly or other regular bill, the Energy Price Guarantee will be applied when your bill is calculated.</p> <p>Because of the different energy system in Northern Ireland, and the different ways the global energy market impacts different fuel types, the Energy Price Guarantee will have to work a bit differently for some consumers. The government is working with Northern Ireland partners including the <abbr title="Northern Ireland">NI</abbr> Utility Regulator and <abbr title="Northern Ireland">NI</abbr> energy suppliers to ensure that equitable level of support can be delivered to consumers and businesses in Northern Ireland.</p> <div role="note" aria-label="Information" class="application-notice info-notice"> <p>The Energy Price Guarantee limits the amount you can be charged per unit of gas or electricity, so your exact bill amount will continue to be influenced by how much energy you use</p> </div> <h4 id="if-youre-on-a-pre-payment-meter">If you’re on a pre-payment meter</h4> <p>For <abbr title="Great Britain">GB</abbr> pre-payment meter customers, 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>As is the case with the ‘price cap’ under the Energy Price Guarantee there will continue to be a small difference between the unit cost for a pre-payment meter customer and other bill payers.</p> <h4 id="if-youre-on-a-standard-variable-tariff">If you’re on a standard variable tariff</h4> <p>The average unit price for dual fuel customers paying by direct debit will be limited to 34.0p/kWh for electricity and 10.3p/kWh for gas, inclusive of VAT, from 1 October.</p> <p>These unit prices have been passed to suppliers to ensure that they are used to calculate bills on time for 1 October.</p> <p>Energy suppliers will adjust standard variable tariffs automatically. Customers on standard variable tariffs do not need to take any action to get the benefits of this scheme.</p> <h4 id="if-youre-on-a-fixed-rate-tariff">If you’re on a fixed rate tariff</h4> <p>For those customers on fixed rate tariffs, a ‘floor’ unit price for gas averaging at 10.3p/kWh and for electricity averaging at 34p/kWh for direct debit customers will also come into effect on 1 October 2022. We are introducing a floor because some people will have fixed at much lower prices some time ago, meaning their annual payments will already be below the £2,500 average set by the Energy Price Guarantee.</p> <p>Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers to bring their rates down to, but not below, the floor unit price. Customers on fixed rate tariffs that are already below the floor unit prices will continue to enjoy those low rates, but will not receive a further discount for the duration of their fixed term.</p> <p>For the small number of consumers who fixed at a high rate exceeding the October <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr> price cap of £3,549, they will receive the full discount of 17p for electricity and 4.2p for gas. However, given the higher starting point, their fixed rate tariff will still have a unit rate that is above the EPG rates. This will ensure that a fair price is paid by everyone.</p> <p>Energy suppliers will adjust fixed tariffs automatically. Customers on fixed tariffs do not need to take any action to get the benefits of this scheme. Any transfer to a different tariff is a matter for suppliers.</p> <h4 id="standing-charges">Standing charges</h4> <p>Average standing charges will remain in line with the levels set by <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr> for the default tariff cap from 1 October, at 46p per day for electricity and 28p per day for gas, for a typical dual fuel customer paying by direct debit.</p> <h4 id="if-youre-not-connected-to-the-grid">If you’re not connected to the grid</h4> <p>Those households not on standard gas or electricity contracts, such as those living in park homes or on heat networks – and so outside the scheme – will be no worse off and will receive comparable support through a discretionary fund.</p> <h4 id="if-you-pay-for-electricity-as-part-of-your-rent">If you pay for electricity as part of your rent</h4> <p>The Energy Price Guarantee is applied per unit of gas or electricity used for households with a domestic electricity connection, so will be applied if your landlord has a domestic electricity contract with a licensed electricity supplier.</p> <p>Your landlord may be reselling the electricity to you based on your usage, in which case:</p> <ul> <li>they must comply with the maximum resale price rules which say they must not make a profit</li> <li>the maximum resale price for electricity is currently set at the same price as that paid by the person reselling it (see <a rel="external" href="http://web.archive.org/web/20220920134142/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>)</li> </ul> <p>Your landlord may charge an ‘all inclusive’ rent, where a fixed cost for energy usage is included in your rental charges, in which case:</p> <ul> <li> <p>they are encouraged to come to an agreement with you on the Energy Price Guarantee in line with the arrangement in your tenancy agreement, and we are exploring a full range of options to ensure this happens, including using the planned emergency legislation.</p> </li> <li> <p>the landlord’s fixed charge may already provide you with similar protection from the impact of energy price increases</p> </li> </ul> <h3 id="example-savings-based-on-your-type-of-home">Example savings based on your type of home</h3> <p>Under the new Energy Price Guarantee, the average house will save an average of £1,000 and the average flat will save £700.</p> <p><strong>Typical Bills - 2019 median consumption (Dual fuel, annual basis)</strong></p> <table> <thead> <tr> <th scope="col">Property type</th> <th style="text-align: right" scope="col">Under October price cap</th> <th style="text-align: right" scope="col">Under government Energy Price Guarantee</th> <th style="text-align: right" scope="col">Difference</th> </tr> </thead> <tbody> <tr> <th scope="row">All dwellings</th> <td style="text-align: right">£3,550</td> <td style="text-align: right">£2,500</td> <td style="text-align: right">£1,050</td> </tr> <tr> <th scope="row">Houses</th> <td style="text-align: right">£3,800</td> <td style="text-align: right">£2,650</td> <td style="text-align: right">£1,150</td> </tr> <tr> <td>Detached</td> <td style="text-align: right">£4,700</td> <td style="text-align: right">£3,300</td> <td style="text-align: right">£1,400</td> </tr> <tr> <td>Semi Detached</td> <td style="text-align: right">£3,800</td> <td style="text-align: right">£2,650</td> <td style="text-align: right">£1,150</td> </tr> <tr> <td>End Terraced</td> <td style="text-align: right">£3,500</td> <td style="text-align: right">£2,450</td> <td style="text-align: right">£1,050</td> </tr> <tr> <td>Mid Terraced</td> <td style="text-align: right">£3,300</td> <td style="text-align: right">£2,350</td> <td style="text-align: right">£950</td> </tr> <tr> <td>Bungalow</td> <td style="text-align: right">£3,500</td> <td style="text-align: right">£2,450</td> <td style="text-align: right">£1,050</td> </tr> <tr> <th scope="row">Flats</th> <td style="text-align: right">£2,450</td> <td style="text-align: right">£1,750</td> <td style="text-align: right">£700</td> </tr> <tr> <td>Converted flat</td> <td style="text-align: right">£2,750</td> <td style="text-align: right">£1,950</td> <td style="text-align: right">£800</td> </tr> <tr> <td>Purpose built flat</td> <td style="text-align: right">£2,400</td> <td style="text-align: right">£1,750</td> <td style="text-align: right">£650</td> </tr> </tbody> </table> <h2 id="support-for-businesses-and-non-domestic-properties">Support for businesses and non-domestic properties</h2> <h3 id="providing-support-to-businesses">Providing support to businesses</h3> <p>While the majority of UK non-domestic customers are on fixed price energy deals, some are not. Businesses did not benefit from the <abbr title="Office of Gas and Electricity Markets">Ofgem</abbr> price cap and there was a risk that some would fall through the gap, unable to fix their energy price and unable to access the kind of support we are making available to households.</p> <p>A new 6 month scheme for businesses and other non-domestic energy users (including charities and public sector organisations like schools) will be offered support as is being provided for consumers.</p> <p>After this initial 6 month scheme, the government will provide ongoing focused support for vulnerable industries.</p> <p>There will be a review in 3 months’ time to consider where this should be targeted to make sure those most in need get support.</p> <p>Further details will be published shortly.</p> <h2 id="reform-to-address-long-term-issues-in-the-uks-energy-sector">Reform to address long-term issues in the UK’s energy sector</h2> <h3 id="reducing-the-cost">Reducing the cost</h3> <p>While the intervention will be funded by the government, action is being taken to significantly reduce the cost over time, including:</p> <h4 id="energy-supply-taskforce">Energy Supply Taskforce</h4> <p>A new Energy Supply Taskforce – led by Madelaine McTernan who headed up the UK’s successful Vaccine Taskforce – has begun negotiations with domestic and international suppliers to agree long-term contracts that reduce the price they charge for energy and increase the security of its supply. The government will negotiate with renewable producers to reduce the prices they charge as well.</p> <h4 id="energy-markets-financing-scheme">Energy Markets Financing Scheme</h4> <p>HM Treasury are announcing a joint scheme, working with the Bank of England, to address the extraordinary liquidity requirements faced by energy firms operating in UK wholesale gas and electricity markets. The Energy Markets Financing Scheme will enable stability to both energy and financial markets, and the economy, and reduce the eventual cost for businesses and consumers. The scheme will provide short term financial support and will be designed to be used as a last resort.</p> <h3 id="increasing-supply">Increasing supply</h3> <p>Learning from the mistakes of the past, the government is taking action to accelerate domestic energy supply, increase our energy resilience and achieve our ambition to make the UK an energy exporter by 2040:</p> <ul> <li> <strong>launch a new oil and gas licensing round</strong> as early as next week, expected to lead to over 100 new licences.</li> <li> <strong>lift the moratorium on UK shale gas production</strong> - enabling developers to seek planning permission where there is local support, which could get gas flowing in as soon as 6 months</li> <li><strong>drive forward the acceleration of new sources of energy supply from North Sea oil and gas to clean energy like nuclear, wind and solar</strong></li> <li> <strong>continue progressing up to 24GW of nuclear by 2050</strong>, with Great British Nuclear helping to set direction of getting new nuclear projects online in the UK</li> <li> <strong>undertake fundamental reforms to the structure and regulation of energy market</strong> through recommendations from a new review of the UK energy regulation</li> <li> <strong>launch a review to ensure we are meeting our net zero 2050 target in an economically-efficient way</strong>, given the altered economic landscape; chaired by Chris Skidmore MP and reporting by the end of this year, it will ensure delivering the target is not placing undue burdens on businesses or consumers</li> </ul> <h2 id="other-help">Other help</h2> <p>Find out what other payments are available that can <a rel="external" href="http://web.archive.org/web/20220920134142/https://helpforhouseholds.campaign.gov.uk/help-with-your-bills/" class="govuk-link">help with your energy bills</a>.</p> </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"> <div class="gem-c-feedback__prompt gem-c-feedback__js-show js-prompt" tabindex="-1"> <div class="gem-c-feedback__prompt-questions js-prompt-questions" hidden> <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/20220920134142/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"> 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"> No <span class="govuk-visually-hidden">this page is not useful</span> </button> </li> </ul> </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"> Report a problem with this page </button> </div> </div> <form action="/web/20220920134142/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> <button class="govuk-button govuk-button--secondary gem-c-feedback__close gem-c-feedback__js-show js-close-form" data-track-category="Onsite Feedback" data-track-action="GOV.UK Close Form" aria-controls="something-is-wrong" aria-expanded="true"> Close </button> <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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"url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/assets/government-frontend/govuk_publishing_components/govuk-logo-73b5a4056ffe9988d02c728b56fe9fe7f90bb822322a5f6183ccbb92a99b019a.png" } }, "image": [ "http://web.archive.org/web/20220920134142/https://www.gov.uk/assets/government-frontend/govuk_publishing_components/govuk-schema-placeholder-1x1-bf9e64d759af6dfd93bede8168f3087a329f405b382aff36747db0db4b7b23e9.png", "http://web.archive.org/web/20220920134142/https://www.gov.uk/assets/government-frontend/govuk_publishing_components/govuk-schema-placeholder-4x3-13093f053c15f613acd827aff27cac83d3fab452947cbcae4c7b706dadf2f7f2.png", "http://web.archive.org/web/20220920134142/https://www.gov.uk/assets/government-frontend/govuk_publishing_components/govuk-schema-placeholder-16x9-4233cd42671827e266e284c4d5ae68fb600bd9f9e35dda663ccabbc2b6ab7ec3.png" ], "author": { "@type": "Organization", "name": "Department for Business, Energy \u0026 Industrial Strategy", "url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy" }, "mainEntity": [ { "@type": "Question", "name": "Support for households", "url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#support-for-households", "acceptedAnswer": { "@type": "Answer", "url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#support-for-households", "text": "\u003cp\u003eThe government has announced the following immediate, short-term action to support households:\u003c/p\u003e\u003ch3 id=\"replacing-the-price-cap-with-a-new-energy-price-guarantee\"\u003eReplacing the price cap with a new Energy Price Guarantee\u003c/h3\u003e\u003cp\u003eThe Energy Price Guarantee will ensure that a typical household in Great Britain pays an average £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.\u003c/p\u003e\u003cp\u003eThe consumer saving will be based on usage, but a typical household will save at least £1,000 a year (based on current prices from October). Energy suppliers will be fully compensated for the cost of the Energy Price Guarantee.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e£150 of this £1,000 a year saving will be delivered by temporarily suspending green levies\u003c/strong\u003e. These costs will be transferred to the Exchequer, so customers don’t bear the costs, but benefit from the low-carbon electricity generation.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eThis is in addition to the £400 Energy Bills Support Scheme\u003c/strong\u003e. This will be paid in 6 instalments from October.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eThe most vulnerable UK households will also continue to receive £1,200 of support\u003c/strong\u003e provided in instalments over the year.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eAn additional discretionary fund will be available for those households who are outside of the schemes\u003c/strong\u003e. For example, households not on standard gas / electricity contracts.\u003c/p\u003e\u003ch3 id=\"how-the-energy-price-guarantee-will-be-applied-to-energy-bills\"\u003eHow the Energy Price Guarantee will be applied to energy bills\u003c/h3\u003e\u003cp\u003eYou do not need to apply, and there’s no need to contact your energy supplier.\u003c/p\u003e\u003cp\u003eFor consumers in England, Scotland and Wales who pay for their energy through a monthly, quarterly or other regular bill, the Energy Price Guarantee will be applied when your bill is calculated.\u003c/p\u003e\u003cp\u003eBecause of the different energy system in Northern Ireland, and the different ways the global energy market impacts different fuel types, the Energy Price Guarantee will have to work a bit differently for some consumers. The government is working with Northern Ireland partners including the \u003cabbr title=\"Northern Ireland\"\u003eNI\u003c/abbr\u003e Utility Regulator and \u003cabbr title=\"Northern Ireland\"\u003eNI\u003c/abbr\u003e energy suppliers to ensure that equitable level of support can be delivered to consumers and businesses in Northern Ireland.\u003c/p\u003e\u003cdiv role=\"note\" aria-label=\"Information\" class=\"application-notice info-notice\"\u003e\n\u003cp\u003eThe Energy Price Guarantee limits the amount you can be charged 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\n\u003c/div\u003e\u003ch4 id=\"if-youre-on-a-pre-payment-meter\"\u003eIf you’re on a pre-payment meter\u003c/h4\u003e\u003cp\u003eFor \u003cabbr title=\"Great Britain\"\u003eGB\u003c/abbr\u003e pre-payment meter customers, 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.\u003c/p\u003e\u003cp\u003eAs is the case with the ‘price cap’ under the Energy Price Guarantee there will continue to be a small difference between the unit cost for a pre-payment meter customer and other bill payers.\u003c/p\u003e\u003ch4 id=\"if-youre-on-a-standard-variable-tariff\"\u003eIf you’re on a standard variable tariff\u003c/h4\u003e\u003cp\u003eThe average unit price for dual fuel customers paying by direct debit will be limited to 34.0p/kWh for electricity and 10.3p/kWh for gas, inclusive of VAT, from 1 October.\u003c/p\u003e\u003cp\u003eThese unit prices have been passed to suppliers to ensure that they are used to calculate bills on time for 1 October.\u003c/p\u003e\u003cp\u003eEnergy suppliers will adjust standard variable tariffs automatically. Customers on standard variable tariffs do not need to take any action to get the benefits of this scheme.\u003c/p\u003e\u003ch4 id=\"if-youre-on-a-fixed-rate-tariff\"\u003eIf you’re on a fixed rate tariff\u003c/h4\u003e\u003cp\u003eFor those customers on fixed rate tariffs, a ‘floor’ unit price for gas averaging at 10.3p/kWh and for electricity averaging at 34p/kWh for direct debit customers will also come into effect on 1 October 2022. We are introducing a floor because some people will have fixed at much lower prices some time ago, meaning their annual payments will already be below the £2,500 average set by the Energy Price Guarantee.\u003c/p\u003e\u003cp\u003eUnit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers to bring their rates down to, but not below, the floor unit price. Customers on fixed rate tariffs that are already below the floor unit prices will continue to enjoy those low rates, but will not receive a further discount for the duration of their fixed term.\u003c/p\u003e\u003cp\u003eFor the small number of consumers who fixed at a high rate exceeding the October \u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e price cap of £3,549, they will receive the full discount of 17p for electricity and 4.2p for gas. However, given the higher starting point, their fixed rate tariff will still have a unit rate that is above the EPG rates. This will ensure that a fair price is paid by everyone.\u003c/p\u003e\u003cp\u003eEnergy suppliers will adjust fixed tariffs automatically. Customers on fixed tariffs do not need to take any action to get the benefits of this scheme. Any transfer to a different tariff is a matter for suppliers.\u003c/p\u003e\u003ch4 id=\"standing-charges\"\u003eStanding charges\u003c/h4\u003e\u003cp\u003eAverage standing charges will remain in line with the levels set by \u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e for the default tariff cap from 1 October, 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\u003ch4 id=\"if-youre-not-connected-to-the-grid\"\u003eIf you’re not connected to the grid\u003c/h4\u003e\u003cp\u003eThose households not on standard gas or electricity contracts, such as those living in park homes or on heat networks – and so outside the scheme – will be no worse off and will receive comparable support through a discretionary fund.\u003c/p\u003e\u003ch4 id=\"if-you-pay-for-electricity-as-part-of-your-rent\"\u003eIf you pay for electricity as part of your rent\u003c/h4\u003e\u003cp\u003eThe Energy Price Guarantee is applied per unit of gas or electricity used for households with a domestic electricity connection, so will be applied if your landlord has a domestic electricity contract with a licensed electricity supplier.\u003c/p\u003e\u003cp\u003eYour landlord may be reselling the electricity to you based on your usage, in which case:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003ethey must comply with the maximum resale price rules which say they must not make a profit\u003c/li\u003e\n \u003cli\u003ethe maximum resale price for electricity is currently set at the same price as that paid by the person reselling it (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)\u003c/li\u003e\n\u003c/ul\u003e\u003cp\u003eYour landlord may charge an ‘all inclusive’ rent, where a fixed cost for energy usage is included in your rental charges, in which case:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003e\n \u003cp\u003ethey are encouraged to come to an agreement with you on the Energy Price Guarantee in line with the arrangement in your tenancy agreement, and we are exploring a full range of options to ensure this happens, including using the planned emergency legislation.\u003c/p\u003e\n \u003c/li\u003e\n \u003cli\u003e\n \u003cp\u003ethe landlord’s fixed charge may already provide you with similar protection from the impact of energy price increases\u003c/p\u003e\n \u003c/li\u003e\n\u003c/ul\u003e\u003ch3 id=\"example-savings-based-on-your-type-of-home\"\u003eExample savings based on your type of home\u003c/h3\u003e\u003cp\u003eUnder the new Energy Price Guarantee, the average house will save an average of £1,000 and the average flat will save £700.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eTypical Bills - 2019 median consumption (Dual fuel, annual basis)\u003c/strong\u003e\u003c/p\u003e\u003ctable\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth scope=\"col\"\u003eProperty type\u003c/th\u003e\n \u003cth style=\"text-align: right\" scope=\"col\"\u003eUnder October price cap\u003c/th\u003e\n \u003cth style=\"text-align: right\" scope=\"col\"\u003eUnder government Energy Price Guarantee\u003c/th\u003e\n \u003cth style=\"text-align: right\" scope=\"col\"\u003eDifference\u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003cth scope=\"row\"\u003eAll dwellings\u003c/th\u003e\n \u003ctd style=\"text-align: right\"\u003e£3,550\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£2,500\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£1,050\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003cth scope=\"row\"\u003eHouses\u003c/th\u003e\n \u003ctd style=\"text-align: right\"\u003e£3,800\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£2,650\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£1,150\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003eDetached\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£4,700\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£3,300\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£1,400\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003eSemi Detached\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£3,800\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£2,650\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£1,150\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003eEnd Terraced\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£3,500\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£2,450\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£1,050\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003eMid Terraced\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£3,300\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£2,350\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£950\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003eBungalow\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£3,500\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£2,450\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£1,050\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003cth scope=\"row\"\u003eFlats\u003c/th\u003e\n \u003ctd style=\"text-align: right\"\u003e£2,450\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£1,750\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£700\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003eConverted flat\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£2,750\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£1,950\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£800\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003ePurpose built flat\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£2,400\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£1,750\u003c/td\u003e\n \u003ctd style=\"text-align: right\"\u003e£650\u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e" } }, { "@type": "Question", "name": "Support for businesses and non-domestic properties", "url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#support-for-businesses-and-non-domestic-properties", "acceptedAnswer": { "@type": "Answer", "url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#support-for-businesses-and-non-domestic-properties", "text": "\u003ch3 id=\"providing-support-to-businesses\"\u003eProviding support to businesses\u003c/h3\u003e\u003cp\u003eWhile the majority of UK non-domestic customers are on fixed price energy deals, some are not. Businesses did not benefit from the \u003cabbr title=\"Office of Gas and Electricity Markets\"\u003eOfgem\u003c/abbr\u003e price cap and there was a risk that some would fall through the gap, unable to fix their energy price and unable to access the kind of support we are making available to households.\u003c/p\u003e\u003cp\u003eA new 6 month scheme for businesses and other non-domestic energy users (including charities and public sector organisations like schools) will be offered support as is being provided for consumers.\u003c/p\u003e\u003cp\u003eAfter this initial 6 month scheme, the government will provide ongoing focused support for vulnerable industries.\u003c/p\u003e\u003cp\u003eThere will be a review in 3 months’ time to consider where this should be targeted to make sure those most in need get support.\u003c/p\u003e\u003cp\u003eFurther details will be published shortly.\u003c/p\u003e" } }, { "@type": "Question", "name": "Reform to address long-term issues in the UK’s energy sector", "url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#reform-to-address-long-term-issues-in-the-uks-energy-sector", "acceptedAnswer": { "@type": "Answer", "url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#reform-to-address-long-term-issues-in-the-uks-energy-sector", "text": "\u003ch3 id=\"reducing-the-cost\"\u003eReducing the cost\u003c/h3\u003e\u003cp\u003eWhile the intervention will be funded by the government, action is being taken to significantly reduce the cost over time, including:\u003c/p\u003e\u003ch4 id=\"energy-supply-taskforce\"\u003eEnergy Supply Taskforce\u003c/h4\u003e\u003cp\u003eA new Energy Supply Taskforce – led by Madelaine McTernan who headed up the UK’s successful Vaccine Taskforce – has begun negotiations with domestic and international suppliers to agree long-term contracts that reduce the price they charge for energy and increase the security of its supply. The government will negotiate with renewable producers to reduce the prices they charge as well.\u003c/p\u003e\u003ch4 id=\"energy-markets-financing-scheme\"\u003eEnergy Markets Financing Scheme\u003c/h4\u003e\u003cp\u003eHM Treasury are announcing a joint scheme, working with the Bank of England, to address the extraordinary liquidity requirements faced by energy firms operating in UK wholesale gas and electricity markets. The Energy Markets Financing Scheme will enable stability to both energy and financial markets, and the economy, and reduce the eventual cost for businesses and consumers. The scheme will provide short term financial support and will be designed to be used as a last resort.\u003c/p\u003e\u003ch3 id=\"increasing-supply\"\u003eIncreasing supply\u003c/h3\u003e\u003cp\u003eLearning from the mistakes of the past, the government is taking action to accelerate domestic energy supply, increase our energy resilience and achieve our ambition to make the UK an energy exporter by 2040:\u003c/p\u003e\u003cul\u003e\n \u003cli\u003e\n\u003cstrong\u003elaunch a new oil and gas licensing round\u003c/strong\u003e as early as next week, expected to lead to over 100 new licences.\u003c/li\u003e\n \u003cli\u003e\n\u003cstrong\u003elift the moratorium on UK shale gas production\u003c/strong\u003e - enabling developers to seek planning permission where there is local support, which could get gas flowing in as soon as 6 months\u003c/li\u003e\n \u003cli\u003e\u003cstrong\u003edrive forward the acceleration of new sources of energy supply from North Sea oil and gas to clean energy like nuclear, wind and solar\u003c/strong\u003e\u003c/li\u003e\n \u003cli\u003e\n\u003cstrong\u003econtinue progressing up to 24GW of nuclear by 2050\u003c/strong\u003e, with Great British Nuclear helping to set direction of getting new nuclear projects online in the UK\u003c/li\u003e\n \u003cli\u003e\n\u003cstrong\u003eundertake fundamental reforms to the structure and regulation of energy market\u003c/strong\u003e through recommendations from a new review of the UK energy regulation\u003c/li\u003e\n \u003cli\u003e\n\u003cstrong\u003elaunch a review to ensure we are meeting our net zero 2050 target in an economically-efficient way\u003c/strong\u003e, given the altered economic landscape; chaired by Chris Skidmore MP and reporting by the end of this year, it will ensure delivering the target is not placing undue burdens on businesses or consumers\u003c/li\u003e\n\u003c/ul\u003e" } }, { "@type": "Question", "name": "Other help", "url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#other-help", "acceptedAnswer": { "@type": "Answer", "url": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022#other-help", "text": "\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" } } ] } </script><script type="application/ld+json"> { "@context": "http://web.archive.org/web/20220920134142/http://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "item": { "name": "Home", "@id": "http://web.archive.org/web/20220920134142/https://www.gov.uk/" } }, { "@type": "ListItem", "position": 2, "item": { "name": "Environment", "@id": "http://web.archive.org/web/20220920134142/https://www.gov.uk/environment" } }, { "@type": "ListItem", "position": 3, "item": { "name": "Climate change and energy", "@id": "http://web.archive.org/web/20220920134142/https://www.gov.uk/environment/climate-change-energy" } }, { "@type": "ListItem", "position": 4, "item": { "name": "Energy bills support", "@id": "http://web.archive.org/web/20220920134142/https://www.gov.uk/government/publications/energy-bills-support" } } ] } </script> </body> </html>

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