The new Energy Price Guarantee (EPG) for households across the UK comes into force this weekend and will see customers on the standard tariff with typical usage pay on average £2,500 a year for their energy bill until 2024.
While this new UK Government measure effectively replaces Ofgem’s price cap, it does not mean £2,500 is the maximum someone could pay for their energy bills over the next 12 months. From October 1, the scheme will limit the price suppliers can charge customers for units of gas and electricity, but in real terms, if you use more energy, you will pay more and if you use less, you will pay less.
The new EPG is expected to save the average household £1,000 a year based on current energy prices. It also comes in addition to the £400 energy bills discount for all households and together, they will bring costs close to where the energy price cap currently stands at £1,971.
