The Chancellor has confirmed that the energy price guarantee, which caps average household bills at £2,500, will be extended.
The price guarantee will remain at its current level from April to June, Jeremy Hunt announced during his fiscal statement on Wednesday (March 15). It had been due to rise to £3,000 in April and the cost of scrapping the planned 20% increase will amount to around £3 billion.
It comes as the amount energy suppliers are able to charge households was lowered by Ofgem in its latest announcement which was made last month. On Monday (February 27) the regulator confirmed the price cap, effective from April 1, would drop from the current £4,279 per year to £3,280 for the average household.
