Energy Price Guarantee.

Energy Price Guarantee.

Since its introduction, the government has made changes to the Energy Price Guarantee (EPG). We have put together all the latest information, alongside a timeline of key events, so you can stay up to date. From 1 July 2023 the EPG no longer applies and the price cap will determine how much energy companies can charge. Ofgem's new price cap level effectively ends the government’s financial support for residential energy bills. The government's Energy Price Guarantee ends on 31 March 2024.

15 March 2023.

Chancellor Jeremy Hunt announced, in the Spring Budget, that from 1 April 2023 the EPG will remain at £2,500 instead of the proposed increase to £3,000. Your energy bill will not be capped at £2,500 as it will still be calculated based on your individual energy use.

EPG timeline.

26 August 2022: Ofgem raised the annual average price cap for gas and electricity from £2,100 to £3,549, set to come into effect from October 2022. This led to calls for government support with energy bills due to widespread concern over the cost of living crisis. 8 September 2022: Former Prime Minister Liz Truss announced plans to limit average annual household spending on energy to £2,500 for two years through the new Energy Price Guarantee scheme. 17 October 2022: Chancellor Jeremy Hunt reduced the length of the £2,500 EPG to six months – ending April 2023. 17 November 2022: Chancellor Jeremy Hunt announced the EPG will continue for 12 months from 1 April 2023 at an increased average annual level of £3,000. 15 March 2023: In the government’s Spring Budget, the Chancellor announced that the EPG will remain at £2,500 from 1 April 2023 instead of the proposed rise to £3,000. 25 May 2023: Ofgem announce a price cap level that will be below the government's EPG. This means that from 1 July 2023 the price cap will determine unit prices. 1 July 2023: The government will raise the EPG to £3,000 and keep it in place until April 2024.

How does the EPG work?

The Energy Price Guarantee limits the amount energy companies can charge consumers per unit of energy. The government will then compensate energy companies for the difference between the lowered EPG price customers are paying and the wholesale energy price. The EPG is not a cap on your annual energy bills. The £2,500 figure is the price of energy for an average household for the whole year. The price per unit of energy was reduced under the EPG to align with the £2,500 annual household average. You are charged for each unit of energy you use, at the EPG price per unit. Therefore your bills will vary depending on your energy use, and they can still exceed £2,500 per year. The government’s Energy Price Guarantee is designed to keep typical bills for someone paying by Direct Debit to about £2,500 a year until 30 June 2023. However the changes to the underlying price cap (announced 27 February 2023) from regulator Ofgem will have an effect on the amount of the EPG discount. This means that some people's bills will change slightly from 1 April 2023 depending on the region they live in and the way that they pay their bills. Customers who are negatively affected by changes will be communicated to directly.

Support with your bills.

Despite the EPG, energy prices are still significantly higher than last year, and many people are struggling to pay their bills. If you are worried about your ability to pay there are many ways we can support you. The sooner you reach out, the sooner we can help, so please contact us as early as possible with your concerns. How we can help: • E.ON Next Energy Fund - Receive grants to help pay your energy bills or replace faulty home appliances. Check if you are eligible for support from the E.ON Next Energy Fund. • Paylink - Complete an online budget with our partner Paylink and we will help you set up an affordable payment plan tailored to your individual circumstances. Create your online budget today. • Free Debt Advice from StepChange - Take a money health check using this simple tool from our partner StepChange who can provide financial advice and help you understand your next steps. Start your money health check now. • Priority Services Register - If you are a vulnerable customer and feel you would benefit from extra help managing your energy account we can add you to the Priority Services Register (PSR). Find out how the PSR could help you. • ReachOut - We are funding confidential support to help you through any challenges you are facing with your financial, mental, and physical wellbeing. Sometimes we may ask ReachOut to contact customers on our behalf, or you can contact us directly if you need help.

Additional support available: • Warm Home Discount - Receive £150 off your energy bill as a one off payment. The Warm Home Discount is only available over winter for eligible customers. Learn more about the Warm Home Discount. • The Winter Fuel Payment - Customers born before 25th September 1956 can receive between £250 - £600 in a one-off annual payment to help toward heating bills. You should receive this automatically when you reach pension age. Otherwise, you can check your eligibility for the Winter Fuel Payment and apply online. • Homes For Living - Get more freedom in your home with free home aids and equipment to improve your mobility and wellbeing. Find out if you are eligible for support from Homes For Living. Impartial Advice: • Citizens Advice - Get confidential and unbiased advice across a variety of subjects including your energy and personal finance. Citizens Advice is a network of independent charitable organisations that can help you tackle all of life’s ups and downs. Access free support from Citizens Advice. • Mind - Managing money can impact your mental wellbeing. If you feel you could use support we advise you to reach out to our charity partner Mind for respectful and reliable help with your mental health. We are here to help you get the help you need all year round. Find more information and support if you are struggling to pay.

Contact our Energy Specialists if you’re having difficulty.

Our Energy Specialists are here to help you if you’re concerned about your energy bills. If you’re struggling to pay, please visit our help page to find out more about how we can support you. You can reach out to our Energy Specialists for personal advice on Facebook and X (Twitter).

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Published 24/05/2023