An unprecedented intervention in the energy market will protect households, businesses and public sector organizations from the worst increase in wholesale gas prices.
The Truss government “energy price guarantee“It aims to keep the cost of the bill facing the public to less than half the expected amount for the coming winter, with companies also getting help to protect the economy, but not for that long.
Public sector organizations such as schools are also included.
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While the plan shields us from the staggering amounts expected for upfront bills, there will ultimately be a price to pay as the taxpayer is initially strained for support that could scale the COVID-era bailout.
Here Sky News explains how you will be helped in the coming months.
Last month it was announced that the energy price cap would rise to an annual average of £ 3,549 in October from the current £ 1,971.
This will not happen now.
Ms Truss says the limit will be replaced by the new price guarantee, a sum that will not exceed £ 2,500 from October for two years.
Helping bring that number back to the current limit level is the previously announced £ 400 discount for each household and a temporary removal of green fees, worth £ 150 per year, from utility bills.
The energy price guarantee covers the vast majority of households: around 24 million who pay for gas and electricity by direct debit.
What this ad doesn’t mean is that you won’t pay more for your gas and electricity. It’s an average sum based on unit prices, so the more you use, the more you’ll pay.
What the Treasury is doing is effectively covering the difference in (soaring) wholesale prices that will exceed the ‘guarantee’ level of the £ 2,500 household bill.
I’m not covered by the price limit at the moment. I take this opportunity?
A fraction of the households entered into fixed-price, limited-time agreements.
There are 4.5 million prepaid meters that currently pay around 5% more than those under the price cap.
It is understood that the same comparable discount level will apply to all current variable rates in the domestic market, but answers are sought from the government to clarify what this will mean for fixed rate customers.
As things stand, some may have to pay a penalty to get out of their agreement, assuming it is financially beneficial to do so.
Ms. Truss’s statement to the House of Commons revealed that those who do not pay directly for their energy, such as the people who live in the park’s houses, would be helped through a fund.
Fuel oil properties, the prime minister said, would also benefit from the new fund. More details are promised by next week at the latest.
Businesses were given no protection from rising energy prices unless they had or did not have a firm deal.
The toll has led to a typical five-fold increase in energy costs, worse for energy-intensive companies.
Some of these additional costs have contributed significantly to inflation as they have been passed down the supply chain to consumers in the goods and services we use. Think about food, attractions, and transportation.
What the government said Thursday was that businesses would benefit from energy assistance for six months, in line with the level of support for consumers.
A series of reviews, starting in December, will then determine which sectors will need targeted aid beyond April.
Ms Truss suggested that hospitality would be among the sectors that could qualify.
Public sector entities
The same help offered to businesses will apply to charities and schools.