The Energy Price Guarantee is Ending
February 8, 2023
Home Heating Oil, Red Diesel, Coal Delivery, Fuel Additive, Newtownards, Drumaness & Killinchy
Fuel bills for a typical household or business are expected to rise, reaching £3,000 annually in the coming months. Government help is set to reduce, with just the most vulnerable receiving help in the form of cash payments. From April:
- households on means-tested benefits can get £900
- pensioner households will receive £300
- People on certain disability benefits will get £150
The government initiated the energy price guarantee, after concerns about the negative effects of an 80% increase in energy prices. Liz Truss, Prime Minister at the time, announced that the Energy Price Guarantee (EPG) would begin on 1st October 2022. It would slow down price increases for domestic customers, and set maximum prices for gas and electricity. Compensation was provided to energy companies for delivering lower prices.
The scheme was scheduled to last 2 years, but will now end in April 2023. The guarantee ensured that households paid no more than £2,500 per year for their gas and electric. Chancellor Jeremy Hunt then announced the guarantee would continue, although it would increase by £500 to £3,000 a year from April. The maximum amount suppliers could charge households per unit of energy was originally set by Ofgem, the energy regulator But prices soared after Russia’s invasion of Ukraine, prompting the government to replace the energy cap with its energy price guarantee
It’s highly probably that energy prices will to continue to rise after April, and the £400 Energy Bills Support Scheme will not be available. It pays to regularly check the price of home heating oil making sure to get the best deal. The price of this type of fuel continually fluctuates, so it’s wise to buy when lower. Remember, although it seems counter intuitive, it’s always cheaper to purchase home heating oil during the summer months. You can check the current price of heating oil and order on our website for fast, efficient delivery.