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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? |
(1 day later) | |
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. | 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. |
However, there will be additional support for the most vulnerable. | However, there will be additional support for the most vulnerable. |
What extra for energy bills will be available? | What extra for energy bills will be available? |
From April, some groups will receive cash payments to help with energy costs: | From April, some groups will receive cash payments to help with energy costs: |
£900 to households on means-tested benefits | £900 to households on means-tested benefits |
£300 for pensioner households | £300 for pensioner households |
£150 to people on certain disability benefits | £150 to people on certain disability benefits |
Further details will be published in due course. | Further details will be published in due course. |
What help has the government already provided with energy bills? | What help has the government already provided with energy bills? |
What is the energy price guarantee and how is it changing? | 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. | 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. | 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. | 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. | 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. | 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 new £3,000 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 your bill 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 winter | 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. | 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 gas | 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 | 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 | 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 | 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. | Prices also rose because demand for energy rocketed after Covid restrictions ended. |
What help have people already had? | 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 getting £650 in two payments. | Eight million low-income households who receive certain benefits or tax credits are getting £650 in two payments. |
Pensioner households are being given £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 also 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 bills | Ofgem: Help with bills |
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