Liz Truss’s energy guarantee puts a price cap at £2,500 for a typical household for two years
Which? breaks down how the new scheme will affect your energy payments and what your new electricity and gas rates will be
New Prime Minister Liz Truss has announced an energy support package during one of her first speeches as Prime Minister.
Truss has announced a new set of measures to tackle crippling energy bills ahead of the winter and beyond. The measures are the first official government cost-of-living package and come two weeks after Ofgem’s price cap soared to £3,549 a year.
The new price cap will be £2,500 for a typical household and will be in place for two years.
The support is designed to extend to households in all circumstances, including those currently not protected by the £400 discount.
The reductions will come on unit rates rather than standing charges, which will stay the same. That means that for energy customers paying by direct debit in England, Scotland and Wales, unit rates and standing charges will work out at an average:
- Electricity: 34p per kWh with a standing charge of 46p per day
- Gas: 10.3p per kWh with a standing charge of 28p per day