On the 24th of November 2022, Ofgem announced an increase to the Energy Price Cap which affects how much energy suppliers can charge customers for energy.
Whilst this change doesn't come into effect until the 1st of January 2023 you may have some questions about what this means for you.
But do not worry, we have compiled a list of all the important and most asked questions to shed some light on the changes that we will see in 2023.
How does the Energy Price Guarantee affect me?
The EPG (Energy Price Guarantee) is in place to limit the prices you pay for each unit of energy. There are, however, some variations in the way customers see this on their bill which is all dependent on their current tariff.
If you are on a Standard-Variable Tariff, the guarantee limits the amount that can be charged for each unit of energy you consume.
If you are on a Fixed-Rate Tariff, you are also entitled to the EPG but if you are fixed at a higher rate than the current threshold for this government support, we will have been in touch
to let you know about this. If your tariff is on a lower fixed rate, then you still qualify for the EPG, however, these rates are subject to a floor price.
If you are on an Economy-7 or Dual-Fuel Tariff, the Energy Price Guarantee will apply to your off-peak and on-peak rates on both your gas and electricity.
Will the Energy Price Cap change affect me right now?
No, the changes don’t come into place until the 1st of January 2023. Any direct debits or payments you make in December will not be affected.
From April 2023, their will be another review by Ofgem to see if there is any necessity to alter the current cap.
Is £2,500 the maximum I will pay for my energy over the year?
No, this is the amount calculated for an average household in the UK, what you pay is based on your exact usage which is recorded through monthly meter readings either sent to us by you or via your smart meter if you have one installed.
How much will I save with the EPG in place?
Ofgem calculated that average households are saving around £900 more than if it was based on the price cap alone.
This is a number that fluctuates due to many factors which can include:
How many people live in the home.
How much electricity and gas are used in the property.
The geographical area of the household.
There are many more aspects considered by Ofgem to calculate how much people are really saving from the Energy Price Guarantee.
Is there anywhere I can find out more about the EPG?
There is indeed. Our FAQ section contains multiple articles regarding what the Energy Price Guarantee is and what it does for you.
There is also a plethora of information that can be found on the Gov website. If you would like to read more, you can follow this link that will take you to the Energy Bills Support Factsheet on GOV.UK.
Why are my energy bills still increasing?
It is important to remember that this is not a cap on the total bill you receive. Instead, it is a threshold limit on the amount that energy suppliers can charge per unit of electricity and gas.
Customers may see an increase in the unit rates they are charged because of the hike in wholesale costs for energy suppliers. This rise has happened for many reasons and is also why the government introduced the EPG (to stop these wholesale costs affecting customers adversely).
Whilst the unit rate has increased, it is important to clarify that there will be no change to the standing charge that is on your bill. This is a blanket amount that all people using energy in the UK must pay for their energy.
How much am I really going to pay extra?
Households may see an increase to the unit price in January 2023 due to regional and payment factors that have sprung up because of the new Energy Price Cap.
People on SVT (Standard Variable Tariffs) will see no greater change to their costs than £53 (annualised equivalent) during this time frame based on the average household usage which is 2,900 kWh of electricity and 12,000 kWh of gas.
If you would like to know about the Energy Price Guarantee unit rates in more depth, you can visit the GOV website and read the article Energy Price Guarantee: Regional Rates GOV UK.
What if I can't afford my bill?
We do understand that it is a troubling time for all. That is why, if you do have any problems or need to find out more about how we can help you get through these troubling times, you can contact us on 0800 103 2702 or use our webchat feature to discuss how we can help.
We are very proud of the services we offer and want to ensure that all our customers are getting the support they need so if you do need help or advice, our customer care team are on hand to deal with any queries or issues.
What should I do if my question still hasn't been answered?
Whilst we do try to give our customer base the information they need, it can be difficult finding the right answer for your exact situation.
That is why we have an extensive FAQs section that should help provide you with answers. Alternatively, you can use the contact information presented above to reach out with our team who will do their best to resolve any issues you may have in this unprecedented time.