Households worried about how they will afford their energy bills this winter will be pleased to hear the government has capped them at £2,500 per year from October 1st 2022.
Prime Minister Liz Truss, who took her new role on Monday (September 5th), has revealed plans to prevent the average household energy bill exceeding this amount.
Truss’ cap will last two years, meaning billpayers do not have worry their fees will skyrocket again in a few months’ time.
This comes after Ofgem recently announced a cap of £3,549 in October, over £2,000 a year more what they were before last April.
On August 26th, the regulator revealed this reflects the rise in global wholesale gas prices, as a result of Russia cutting off gas supplies to Europe, as well as the aftermath of the pandemic.
Chief executive of Ofgem Jonathan Brearley called the new Prime Minister to “act further to tackle the impact of the price rises that are coming in October and next year”.
Truss said the government will be able to offer the reduced cap by “securing the wholesale price for energy while putting in measures to secure future supplies at more affordable rates”.
She added this will ensure “we are never in the same position again”.
However, some have argued the new Prime Minister’s actions are not enough, with Liberal Democrats leader Ed Davey noting this price cap is still double what they were last year. In April 2022, Ofgem increased bills for 22 million customers from £1,277 to £1,971 per year.
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