The Energy Price Guarantee will come into force for households this weekend, in the Government’s effort to give much-needed support amid the cost of living crisis.
The new guarantee, which sees bills capped at £2,500 a year for a typical household over the next two years, will replace the Ofgem price cap which many feared they would not be able to afford as prices were due to top £3,500. While the guarantee is lower than Ofgem’s cap, the average bill is still £1,000 more than families were paying this time last year, The Mirror reports .
Following Prime Minister Liz Truss ’ announcement of the energy bills cap, many bill payers have raised questions about what the new guarantee means for them. From how it works on fixed rate deals to what it means for the promised £400 energy bills discount, here’s everything you need to know about the changes coming into force on October 1.
