Families breathed a sign of relief earlier this month when new prime minister Liz Truss's announced that household energy prices will be frozen for two years.
The ‘ Energy Price Guarantee ’ - also referred to as the October Price Freeze - came about in response to the continued rise in the price of energy, which was threatening to overwhelm many household budgets this winter. Under the scheme, which starts from October 1, a typical household will pay an average of £2,500 a year on their energy bills, frozen until 2024.
But households should bear in mind that the £2,500 quoted for an average household. This means some households could be left paying more than £2,500 for their annual bills if they use more than the average amount, while others may pay less. The Energy Price Guarantee replaced the grim £3,549 Ofgem price cap announced last month.
