Most people hadn't heard of it a couple of years ago, but now the energy price cap is rarely out of the news as hard-pressed families grapple with spiralling household bills.
From January 1, the new price cap will be £4,279 per year, and will stay there until April 1, when a new price cap will be set by Ofgem. Prior to August 2022, the cap was set every six months, but Ofgem announced in the summer that it would be reviewed every three months, in the light of spiralling wholesale energy costs.
To complicate things even further, the Government announced the Energy Price Guarantee (EPG), which came into effect on October October 2022. This reduces the unit cost of electricity and gas so that households with typical energy use pay to an average of around £2,500 a year until March 31, 2023 and around £3,000 a year until March 31, 2024. These figures are based on a household with typical consumption on a dual electricity and gas bill paid by direct debit.
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