More details have been confirmed this week of how the support for consumers facing higher energy bills will be provided, with a change specifically in response to queries raised with me by those renters who pay for their energy through their landlord.
The Energy Price Guarantee will reduce the unit cost of electricity and gas so a typical household in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022. The consumer saving will be based on usage, but on average usage a household will save £1,000 a year (based on current prices from October) compared to what they would have paid.
£150 of this £1,000 a year saving will be delivered by temporarily suspending environmental and social costs (including green levies) from being passed onto consumer bills. These costs will be transferred to the government, while customers still benefit from the low-carbon electricity generation. Payment of the Warm Home Discount will be unaffected.
This support is in addition to the £400 Energy Bills Support Scheme, which will be paid in 6 monthly instalments from October. It should be noted the most vulnerable UK households will also be receiving a total £1,200 of support provided in instalments over the year, through discounts to Council Tax and Cost of Living payments for those in receipt of certain benefits. Some of this support has already been paid.
For pre-payment meter customers, the government will make sure you receive the full benefit of both the Energy Price Guarantee and the Energy Bills Support Scheme. For the Energy Price Guarantee, you will not need vouchers, but to benefit from the EBSS you may need them.
Finally, if you pay for your energy as part of your rent, your landlord will benefit from the Energy Price Guarantee if they have a domestic electricity and/or gas contract with a licensed electricity and/or gas supplier and should reflect this in the price they charge you from 1 October.
Similarly, they will receive the Energy Bills Support Scheme (The £400) and should pass it on to you. The Government will act now to introduce legislation to ensure this happens.
You can find more information on the Government website by clicking here.