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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?
(about 5 hours later)
On Thursday the government will set out its plans to help households with energy costs after April. Help with energy costs will be less generous from April, with bills for a typical household going up to £3,000, Chancellor Jeremy Hunt has announced.
Bills are currently set to rise sharply in five months' time when the government's energy price guarantee ends. However, there will be additional support for the most vulnerable.
What is the energy price guarantee? What extra for energy bills will be available?
Under the current scheme, a household using a typical amount of gas and electricity is expected to pay £2,500 annually. From April, some groups will receive cash payments to help with energy costs:
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. £900 to households on means-tested benefits
How much will I pay after April? £300 for pensioner households
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. £150 to people on certain disability benefits
While continued support will be offered, Mr Hunt has warned there will be limits. The BBC understands the price guarantee is likely to remain in place, but will be set at a higher level - at just over £3,000. Further details will be published in due course.
Without further government intervention, a typical annual energy bill could be £3,702 from April, according to analysts Cornwall Insight. What help has the government already provided with energy bills?
However, this depends on the wholesale prices domestic energy suppliers pay for oil and gas. What is the energy price guarantee and how is it changing?
Under the current energy price guarantee, a household using a typical amount of gas and electricity is expected to pay £2,500 annually.
The guarantee began in October, and was originally meant to last for two years, before the government announced it would end in April 2023.
Mr Hunt has now said the guarantee will carry on, and will increase by £500 to £3,000 from April.
Without further government support, the expected cost of an average energy bill would have risen to £3,739 in April, according to analysts Cornwall Insight.
However, this forecast 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 current £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. However, most households aren't typical, and your bill 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 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.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 winterSix 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.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.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".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.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?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".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 gasbusinesses 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 winterthe 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 2022organisations 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 usedthose 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 automaticallythe 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 2023a 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.Prices also rose because demand for energy rocketed after Covid restrictions ended.
What other help can I get with my bills? What help have people already had?
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.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 getting £650 in two payments.
Pensioner households will get £300 and some disabled people will be paid £150. Pensioner households are being given £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. Vulnerable families can also 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 billsOfgem: Help with bills