Page 9 - Growth Plan Newsletter
P. 9
The key points of the government scheme are:
• An Energy Price Guarantee (EPG) of £2,500 per year for “average customer usage”. This replaces the Ofgem
price cap from 1 October 2002 for two years, a period some observers saw as driven by election timings. Like
the existing Ofgem price cap it is not a ceiling on total bills, but instead limits on standing and unit charges
(see below).
EPG Charges for monthly customers paying by direct debit
Charge Gas Electricity
Standing: Pence per day 28.0 46.0
Unit: Pence per kilowatt hour 10.3 34.0
• For anyone with an existing fixed rate tariff costing above the EPG level, the EPG figures will apply subject to
a maximum subsidy of 4.2p/kWh for gas and 17p/kWh for electricity. Thus, the very few people who recently
signed fixed deals could still end up paying more than the rates shown above.
• The various measures announced by Rishi Sunak in May, including the £400 Energy Bills Support Scheme and
additional £300 Winter Fuel Payment for pensioners, will remain.
• There will be discretionary payments for those households using heating oil and LPG.
• The same level of support will be given to households in Northern Ireland where the Ofgem rules do not
apply.
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