The Chancellor has announced a further extension of the Energy Price Guarantee (EPG) until June, which will help to bridge the energy price forecast
The Energy Price Guarantee (EPG) will be kept at £2,500 for an additional three months from April to June, saving a typical household £160.
The announcement comes as the Chancellor is set to confirm a new cost of living support as part of the Spring Budget today (15 March), which focuses on easing the impact of price increases, halving inflation, and supporting more people into work.
The extension of the Energy Price Guarantee will bridge consumers until the summer months
Support from the government has cut the average family energy bill by over £1,300 since October. The three-month extension of the Energy Price Guarantee will mean that households will not feel the full force of the price cap between April and June.
The government has also announced more support from April, with 8 million low-income households set to receive cash payments of £900 over the next year.
Helping families with the cost of living crisis and halving inflation
Prime Minister Rishi Sunak commented: “We know people are worried about their bills rising in April, so to give people some peace of mind, we’re keeping the Energy Price Guarantee at its current level until the summer when gas prices are expected to fall.
“Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.”
The EPG will help to ease the financial pressure on families
Chancellor Jeremy Hunt added: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the Energy Price Guarantee at its current level. With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
In his Autumn Statement, the chancellor announced that Energy Price Guarantee was due to rise to £3,000 on April 1, with the government then expecting to borrow £12bn to fund support. The extension to the EPG announced today follows the latest Ofgem price cap of £3,280 from April to June which sets the cost for the three-month extension.
More action is needed to support a net zero economy
Commenting on the extension, Mike Foster, CEO of the Energy and Utilities Alliance, said: “We warmly welcome the decision to extend the Energy Price Guarantee, helping to protect consumers against a 20% increase from April. It’s good that the Chancellor has listened to us in the energy industry as well as consumer champions who have all backed this move.
“What we now need is for the Chancellor to listen to the industry again, by supporting the move towards a hydrogen economy, in the first instance by giving the green light to blending this zero carbon gas with natural gas into our networks. This helps us all decarbonise without spending huge sums ripping out our gas boilers.”
