🔎 Q&A: What is the energy price cap and why are bills going up? thetimes.co.uk/article/what-i…
Households are set to pay about £600 more on average for their energy bills from April as changes to the price cap announced today will increase the amount energy suppliers can charge
The energy regulator, Ofgem, is expected to increase the price cap — which limits the amount suppliers can charge you for a unit of energy — by about 50%, meaning the average household could be charged around £2,000 a year, up from £1,277
🔷How does the energy price cap work?
The cap is a limit on how much you can be charged for the energy you use, rather than a strict maximum you can be charged overall, so customers with higher energy bills and larger homes will pay more
The cap is a limit on how much you can be charged for the energy you use, rather than a strict maximum you can be charged overall, so customers with higher energy bills and larger homes will pay more
🔷How is the energy price cap calculated?
The price cap, which covers a six-month period based on the price of wholesale gas for the previous six months, rose by 12% to an average of £1,277 in October last year. It is expected to rise by 50% today, and then again in October
The price cap, which covers a six-month period based on the price of wholesale gas for the previous six months, rose by 12% to an average of £1,277 in October last year. It is expected to rise by 50% today, and then again in October
Energy bills have increased due to the rising cost of natural gas, which hit a record high of 450p per therm in December. This caused several smaller suppliers to go bust, because they were unable to pass on the true cost of the gas onto customers due to the price cap 
April’s price cap rise will coincide with a 1.25 percentage point rise in national insurance due to the government’s new social care levy. Prices for food and other goods are also increasing
🔷What help will there be?
The government is poised to announce £6 billion in state-backed loans to energy firms. This will be passed onto customers in the form of a rebate on energy bills. It is expected to work out at about £200 per household
thetimes.co.uk/article/energy…
The government is poised to announce £6 billion in state-backed loans to energy firms. This will be passed onto customers in the form of a rebate on energy bills. It is expected to work out at about £200 per household
thetimes.co.uk/article/energy…
🔷Will there be any further help?
Further rebates to soften the impact of rising prices on poorer households will be directed through council tax
thetimes.co.uk/article/millio…
Further rebates to soften the impact of rising prices on poorer households will be directed through council tax
thetimes.co.uk/article/millio…
The government has dismissed the idea of scrapping VAT from energy bills, saying it was too blunt of a measure and would predominantly help richer households
Read the full Q&A for more information: thetimes.co.uk/article/what-i…
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