Page 8 - Growth Plan Newsletter
P. 8
Energy price measures
Measures to limit the impact of rising gas and electricity prices were announced before Mr Kwarteng’s statement, but
inevitably influenced his financial room for manoeuvre. In the absence of any analysis from the OBR, the only
information on costings came from the Treasury which put the total cost of energy support at £60bn through to the
end of this financial year.
The outline of the distinct but related domestic and non-domestic schemes is now reasonably clear:
Domestic consumers
On 8 September the Liz Truss and the Department for Business, Energy and Industrial Strategy (BEIS) briefly set out
how the government planned to protect domestic consumers from rising energy bills. The backdrop was two August
announcement from Ofgem, the energy regulator for Great Britain. The first shortened the period between price cap
reviews to three months E, while the second set a £3,549 price cap for three months from 1 October, an increase of
80% on the previous level.
The Utility Price Cap
£7,000
OFGEM Cap Cornwall Insights Estimate Energy Price Guarantee
£6,000
£5,000
£4,000
£3,000
£2,000
£1,000
£0
Source: Ofgem, Cornwall Insights
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