THE ENERGY PRICE GUARANTEE

The Somerset Guardian, 28th September 2022

Last week, as Business Secretary I wrote to all Members of Parliament following the Prime Minister’s announcement on 8th September as regards the support that we are offering to people and businesses in the face of soaring energy prices. This package of unprecedented assistance for the whole United Kingdom provides the certainty families and business owners need to help them manage their energy bills.

We have designed the schemes to be simple for energy consumers. Families and eligible businesses do not have to take action or apply for support, energy suppliers will automatically apply the appropriate reduction via their energy bill equivalent across the country and the same is true for businesses, too.

The Energy Price Guarantee for Great Britain will ensure that a typical household pays an average £2,500 a year for their energy from 1 October 2022 for the next two years. On average usage, a household will save £1,000 a year. This is in addition to the already announced £400 Energy Bills Support Scheme for households across the UK. The most vulnerable UK households will also continue to receive £1,200 of support.

This scheme, which will initially run for six months, will provide protections for all businesses, voluntary sector and public sector organisations. To administer support, the Government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity.

As the Prime Minister said, the Government is bringing forward emergency legislation to underpin the delivery of our support package and a Bill will be immediately introduced after Parliamentary Recess to ensure that consumers pay a fair price for their energy.
 

Please do not hesitate to contact me if I can be of any assistance: jacob.reesmogg.mp@parliament.uk.

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