The energy price cap will rise to a record £4,289 in January. Except families won’t feel it, thanks to the Government’s Energy Price Guarantee, which ensures that the average household will pay no more than £2,500. That is, until April.
The large increase in the price cap, driven by the wholesale cost of energy, heaps further pressure on the Exchequer, which is effectively funding the difference. This at a time of huge fiscal challenges.
