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What is the energy price cap and what will happen to bills? | What is the energy price cap and what will happen to bills? |
(12 days later) | |
On Thursday the government will set out its plans to help households with energy costs after April. | |
Bills are currently set to rise sharply in five months' time when the government's energy price guarantee ends. | |
What is the energy price guarantee? | |
Under the current scheme, a household using a typical amount of gas and electricity is expected to pay £2,500 annually. | |
The support - which applies to all households in England, Scotland and Wales - began in October. It was originally meant to last for two years, but will now end in April 2023. | |
How much will I pay after April? | How much will I pay after April? |
An announcement on future energy bill support will be made during Thursday's Autumn Statement, when Chancellor Jeremy Hunt sets out the government's tax and spending policies. | |
While continued support will be offered, Mr Hunt has warned there will be limits. | |
Without further government intervention, a typical annual energy bill could be £3,702 from April, according to analysts Cornwall Insight. | |
However, this depends on the wholesale prices domestic energy suppliers pay for oil and gas. | |
Do I live in a typical household? | Do I live in a typical household? |
The £2,500 annual price for a typical household is based on a direct debit customer using 12,000 kWh (kilowatt hours) of gas and 2,900 kWh of electricity a year. A kilowatt hour is a unit of energy used to calculate your bill. | The £2,500 annual price for a typical household is based on a direct debit customer using 12,000 kWh (kilowatt hours) of gas and 2,900 kWh of electricity a year. A kilowatt hour is a unit of energy used to calculate your bill. |
However, most households aren't typical, and bills depends on how much energy you actually use. | |
The number of occupants, the type of property and how energy efficient it is all make a difference. | |
The price guarantee applies directly to all households in England, Scotland and Wales, with the "same level of support" available in Northern Ireland, which has its own energy market. | |
Six tips for cutting home energy bills this winter | |
How is the National Grid offering to help? | How is the National Grid offering to help? |
The National Grid is running a scheme between November and March to encourage people to use less electricity at peak times. | |
People who avoid using high-energy appliances such as washing machines in the late afternoon or early evening could get discounts of up to £100 on their energy bills. | |
Customers need a smart meter to sign up for the trial, which will run on 12 "test days". | |
On those days, customers will be asked not to use high-energy appliances for one hour of the day, expected to be between 16.00 and 19.00. | On those days, customers will be asked not to use high-energy appliances for one hour of the day, expected to be between 16.00 and 19.00. |
They will then get up to £3 per kilowatt hour off their bill. | |
The scheme is also open to businesses. | The scheme is also open to businesses. |
What help will businesses get with bills? | |
Unlike domestic customers, businesses were only ever promised help for six months, with a review to decide what to do after that. The government says any subsequent help will be "targeted to those most affected". | |
Under the energy bill relief scheme: | Under the energy bill relief scheme: |
businesses get a discount based on a "government supported price" of 21.1p per kWh for electricity and 7.5p per KWh for gas | |
the government says this is less than half the wholesale prices which had been predicted for this winter | |
organisations on fixed price contracts are eligible if their deal started after 1 April 2022 | |
those on variable tariffs will receive an automatic discount for each unit of energy used | those on variable tariffs will receive an automatic discount for each unit of energy used |
the savings will begin to appear in November's bills (backdated to October) and will be applied automatically | the savings will begin to appear in November's bills (backdated to October) and will be applied automatically |
a review will be published after three months time to identify "vulnerable" organisations needing further support after March 2023 | |
The scheme will apply to all non-domestic energy customers in England, Scotland and Wales, with a parallel scheme in Northern Ireland. | The scheme will apply to all non-domestic energy customers in England, Scotland and Wales, with a parallel scheme in Northern Ireland. |
Why have energy prices gone up? | Why have energy prices gone up? |
Energy costs have soared because the conflict in Ukraine has reduced supplies of Russian gas. | Energy costs have soared because the conflict in Ukraine has reduced supplies of Russian gas. |
Prices also rose because demand for energy rocketed after Covid restrictions ended. | |
What other help can I get with my bills? | What other help can I get with my bills? |
All households are automatically getting a one-off £400 discount on their fuel bills from October, although it is still not clear how the help will be delivered in Northern Ireland. | |
Eight million low-income households who receive certain benefits or tax credits are receiving £650 in two payments. | Eight million low-income households who receive certain benefits or tax credits are receiving £650 in two payments. |
Pensioner households will get £300 and some disabled people will be paid £150. | Pensioner households will get £300 and some disabled people will be paid £150. |
This help is being partly funded by a temporary windfall tax on oil and gas companies. | This help is being partly funded by a temporary windfall tax on oil and gas companies. |
Vulnerable families can claim help through the Household Support Fund, and the Warm Home Discount scheme. | |
Energy companies also run hardship funds, although the regulator Ofgem warned that most firms need to do do more to help customers who are struggling. | Energy companies also run hardship funds, although the regulator Ofgem warned that most firms need to do do more to help customers who are struggling. |
What can I do if I can't pay my energy bill? | What can I do if I can't pay my energy bill? |
Ofgem: Help with bills |
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