Households will be dealt another blow tomorrow when the cost of energy bills is hiked again. The government's £2,500 energy price guarantee comes into effect from October 1, increasing the average household bill by around £500, from the current cap of £1,971.
The price guarantee will be in place for two years, meaning Brits will be protected from the mammoth rises that were expected to come next year, with analysts previously suggesting average annual bills could hit as much as £6,000 under Ofgem's price cap.
As with the previous cap, the government's energy price guarantee is based on what an average household is likely to spend - but it only caps the standing charges and the price per unit. Energy bills will still be based on the energy used; so, in reality, households that use more energy will be facing bills much larger than £2,500.
