Mr Hunt is expected to announce further cost-of-living support in his speech, including more help with childcare costs for parents on Universal Credit. In addition to forecasting the cap to sit at £2,013 from July to September, industry analyst Cornwall Insight predicts it will be at £2,002 in the fourth quarter. It will come into play once more if the Ofgem cap rises above this figure due to increases in wholesale prices. The EPG will remain in place until the end of March 2024, reverting to £3,000 on 1 July. The steep fall in wholesale gas prices in recent weeks has not yet been reflected in household bills because suppliers buy in advance – today’s bills still reflect the bulk costs paid in the autumn.īut if wholesale prices continue to fall, it is thought we may see the re-emergence of competition between suppliers, with keenly priced tariffs being used to encourage customers to switch between firms – a market phenomenon that hasn’t functioned for 18 months. However, the cap is forecast to fall to £2,013 in July, at which point suppliers will be required to offer tariffs that conform with the cap, rather than the EPG. The price cap, which is reviewed quarterly, will fall to £3,280 on 1 April, still higher than the EPG. The government says that, if the EPG had not been introduced in October to supersede the price cap operated by Ofgem, the market regulator, typical bills would have reached £4,279 a year this winter. This will save average consumption prepayment customers around £45 a year when it comes into effect later this year. Those with prepayment meters pay slightly more under the EPG, but Mr Hunt is also using the Budget to end this differential so that the so-called prepayment premium is eliminated. The quoted EPG figures represent the annual bill for a household with average consumption paying in arrears by direct debit. The cost of subsidising domestic energy bills has fallen, giving the Chancellor, Jeremy Hunt, scope to extend the measure in a move he says will shield a typical household from a £160 price increase. It was scheduled to rise to £3,000 on 1 April. Contact if you have stories on this topicġ5 March: Prices Due To Fall In July As Lower Cap Kicks InĪhead of this afternoon’s Budget, the government has confirmed that its Energy Price Guarantee (EPG) will be kept at £2,500 until the end of June. Latest news on the UK energy market, including details of the Ofgem price cap, tariff rate increases, company information and regulatory developments. Energy Update: Govt Extends £2,500 Price Guarantee Until July While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.
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