Energy costs set to rise but help is available

As reported by the BBC, energy costs will rise on Saturday, but government scheme is in place to support businesses and households

It stepped in after an 80% increase in domestic gas and electricity bills was earmarked for the first half of winter.

Under the government’s two-year price guarantee, the average unit price for dual fuel customers paying by direct debit on variable deals will be limited to 34p per kilowatt hour (kWh) for electricity and 10.3p per kWh for gas.

In light of the rise, the government’s earlier package of cost-of-living payments is continuing.

The next stage begins from Saturday when everyone’s energy bill will eventually be cut by £400. The discount will be applied over six months, with a reduction of £66 in October and November, and £67 every month between December and March 2023.

The discount will be made automatically by energy suppliers in England, Scotland and Wales, with plans for the equivalent to be paid in Northern Ireland.

The energy plans were in place ahead of last Friday’s tax-cutting mini-budget which has been followed by days of turmoil on the markets.

The government has said its energy guarantee would cost £60bn for the first six months however, industry analysis suggests the total bill could be between £130bn and £150bn.