New Energy Price Cap Prompts Call For Help On Bills

1st March 2023

A report at the BBC explains the energy price situation.

The amount suppliers can charge households for energy has been cut by regulator Ofgem but bills will still rise in April as government help eases.

Ofgem's announcement itself does not directly affect what customers will pay for gas and electricity but it reduces the costs faced by government.

The typical household bill will rise to £3,000 a year in April.

Campaigners say ministers should stop the increase because Ofgem's new cap reduces the cost of support.

The typical annual household bill is set to rise from £2,100 to £3,000 in April because government help - known as the Energy Price Guarantee (EPG) - will become less generous and a £400 winter discount on all bills ends.

The government currently compensates energy suppliers with the difference between the guarantee and Ofgem's cap.

The energy price cap was £4,279 in January but on Monday, Ofgem announced that the cap would drop to £3,280 in April because of falling wholesale prices.

Read the full article HERE