The Energy Price Guarantee (EPG) reduced the unit cost of electricity and gas, reducing bills by a third compared to levels listed under the Ofgem Energy Price Cap. The EPG ran from 1 October 2022 up until 30 June 2023, having been extended for an additional 3 months from April to the end of June.
The EPG provided a support rate discount of around £2,500 per year in Great Britain.
From 1 July 2023, households without a Pre-Payment Meter (PPM) will no longer receive an Energy Price Guarantee discount on their gas and electricity bills. This is because the Ofgem price cap will be lower than the Energy Price Guarantee level, meaning households will pay the rate set by the price cap.7
For the period of July to September 2023, the Ofgem Price Cap will be set at £2,074 for a typical household per year.
The Energy Price Guarantee will remain in place as a safety net until the end of March 2024 should energy prices increase above £3,000 per year.
Pre-Payment Meter (PPM) Households
As part of the Spring Budget, the Government announced that the average PPM household will no longer pay more for their energy than those on direct debit, saving around £21 per year.
This will be delivered through the Energy Price Guarantee by providing a unit rate discount. The discount incorporates the differences between PPM and direct debit costs in both unit rates and standing charges.
From 1 July to 30 September 2023, the Energy Price Guarantee PPM discount will be applied to gas unit rates only.
The discount will be reviewed every 3 months in line with future changes to Ofgem’s Price Cap.
Please note that the discount will be applied automatically to the price that is set on the meter. You do not need to contact your supplier to apply or use vouchers.
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