The government will reportedly spend more than double on safeguarding households against energy bill in the new year.
Despite Ofgem raising the energy price cap, the higher amount will not be seen by consumers who pay for gas and electricity. On the other hand, it means the Treasury will pay 33pm per unit of electricity and nearly 7p per unit of gas for households use across Great Britain.
It will also push up the cost of running the government's energy price guarantee from £7.8 billion in the last three months of 2022 to £15.1 billion in the first three months of 2023, according to estimates by energy consultancy Auxilione. Last week, the Office for Budget Responsibility published its estimates which state that it could cost £6.5 to deal with the fallout from supplier Bulb Energy after its collapse last year.
