Energy Price Guarantee
On 8 September the Prime Minister outlined in Parliament the Energy Price Guarantee. This package of financial support will help households and businesses cope with soaring energy prices this winter and beyond.
You can read my statement on the Energy Price Guarantee, and what it means for you and your family, by clicking here.
In summary, from October 2022:
- The average British household will pay no more than £2,500 per year for the next two years, a measure that will save households an average of £1000 each year.
- 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 their bill is calculated.
- This is in addition to the already announced £400 Energy Bills Support Scheme for households across the UK.
- The most vulnerable UK households will also continue to receive £1,200 of support.
Please note, the Guarantee limits the amount the bill payer can be charged per unit of gas or electricity, so the exact bill amount will continue to be influenced by how much energy is used.
Of course, it is important we consider how much energy we consume as a society – and the practical ways to save money at home on our bills by thinking carefully about the amount of energy we use.
Energy Bill Relief Scheme
Today, the Government has published more details of its Energy Bill Relief Scheme for business and non-domestic properties. Details of the scheme are available here.
This package of assistance is for the whole UK. It provides families and business owners with certainty they need to help them manage their energy bills.
These schemes have been designed to be simple for energy consumers.
- Families and eligible businesses do not have to take action or apply for support – energy suppliers will automatically apply the appropriate reduction via their energy bill.
- Households will receive an equivalent level of financial support wherever they are in the UK. The same is true for businesses across the UK too.
- The Energy Bill Relief Scheme will provide protections for all businesses, voluntary sector and public sector organisations in Great Britain which face excessively high energy bills over the winter period, whether they are on existing fixed price contracts agreed on or after 1 April 2022, signing new fixed price contracts, variable or deemed tariffs or flexible purchase contracts.
- To administer support, the Government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity.
- Suppliers will pass the reduction in the wholesale price through to their customers.
The Energy Bill Relief Scheme will run initially for 6 months covering energy use from 1 October 2022 until 31 March 2023 and the Government will publish a review of the scheme after 3 months. This review will consider how best to offer further support to customers who are the most vulnerable to energy price increases. These are likely to be those who are least able to adjust, for example by reducing energy usage or increasing energy efficiency.
The Chancellor of the Exchequer will set out more details of the cost of this support as part of his Fiscal Statement on 23rd September.
Aberconwy
Here in Aberconwy we have many businesses such as farms, breweries and food producers that are unable to reduce their energy consumption without cutting production.
I have taken care to speak with businesses throughout Aberconwy and I understand the distress that is being caused by increasing energy prices. I will continue to liaise with them about how they are being impacted by energy prices and will ensure that this feedback in considered in the review.
If you have any concerns or questions please do not hesitate to contact me on robin.millar.mp@parliament.uk or call the office on 01492583094