Energy Price Guarantee

Question 1

How the Energy Price Guarantee is applied to energy bills in Great Britain

Accepted Answer

The Energy Price Guarantee reduces (compared to the undiscounted price of energy) the amount you can be charged per unit of gas or electricity, to an annual equivalent of around £2,500 for a typical household in Great Britain.

Energy bills will still be higher or lower depending on how much energy is used - for example energy bills will still be lower for in a well-insulated home that uses less energy.

You do not need to apply, and there is no need to contact your energy supplier, the discount is automatic.

If you get a message telling you that you need to apply, or asking for your bank or credit card details, this could be a scam. You can report messages you think are suspicious.

This winter (1 October 2022 to 31 March 2023) the Energy Price Guarantee is saving a typical household in Great Britain around £900, compared to undiscounted energy prices under the price cap.

As announced in the 2022 Autumn Statement, the Energy Price Guarantee will be extended from April 2023 until April 2024. Over this period a typical household bill in Great Britain will be reduced to around £3,000. Based on projections of the undiscounted price of energy, this is expected to save the typical household in Great Britain around £500.

Ofgem Price Cap

For 1 January to 31 March 2023, the Ofgem Energy Price Cap level will increase to £4,279. This is not what a typical household will pay for their energy. The Energy Price Guarantee will continue to protect households and customers by keeping a bill for a typical household in Great Britain to around £2,500 (annual equivalent).

Question 2

Energy Price Guarantee rates in Great Britain

Accepted Answer

If you’re on a standard variable tariff

The average unit price for dual fuel customers on standard variable tariffs subject to Ofgem’s price cap, paying by direct debit, is limited to:

34.0p/kWh (pence per kilowatt hour) for electricity and 10.3p/kWh for gas, inclusive of VAT, from 1 October 2022 through to March 2023

These are average unit prices, but the specific unit rates each customer sees will vary by region and payment type. See the full list of rates by region and payment type:

for October to December 2022
for January to March 2023

From January the level of government support will increase to account for increases in the Ofgem Price Cap, to keep a typical bill in Great Britain at around £2,500 (yearly equivalent).

If you’re on a variable tariff not subject to the price cap

Variable tariffs which were not subject to Ofgem’s price cap (which are known as having a derogation), for instance certain 100% renewable energy tariffs, will receive the full unit rate discount:

from October-December 2022, unit rate discount of 17p/kWh for electricity and 4.2p/kWh for gas
from January 2023 reductions of 31.8p/kWh for electricity and 6.4p/kWh for gas ^{[footnote 1]}

If originally priced at a higher level than Ofgem’s price cap, then the resulting unit rates will be above the standard variable unit rates.

If you’re on a pre-payment meter and variable contract

Prepayment meter customers will continue to receive the full unit rate discount:

from October to December 2022, 17p/kWh for electricity and 4.2p/kWh for gas
from January to March 2023, 31.8p/kWh for electricity and 6.4p/kWh for gas

The Energy Price Guarantee will be applied to the rate you pay for each unit of energy, so the money you put on the meter will last longer than would otherwise have been the case this winter.

There is no need to apply and you won’t need any vouchers for the Energy Price Guarantee. The discount will be applied automatically by your supplier.

If you’re on a fixed rate tariff

Fixed rate tariff customers will have the same support as those on variable tariffs, but rates are subject to a ‘floor’ price (the minimum rate the price per unit will be discounted to). The floor prices exist because some people will have fixed at much lower prices some time ago, meaning their payments will already be below the level set by the Energy Price Guarantee.

For fixed rate tariffs that currently have unit rates above the floor price, these unit price reductions apply:

up to 17p/kWh for electricity and 4.2p/kWh for gas for October to December 2022
up to 31.8p/kWh for electricity and 6.4p/kWh for gas from January to March 2023

The floor unit prices vary by region and payment type but for electricity average at 34p/kWh and for gas average at 10.3p/kWh for direct debit customers in Great Britain with typical energy consumption. These floor prices remain unchanged from 1 October 2022 through to 31 March 2023.

Customers on fixed rate tariffs that are already below the floor unit rate will remain on those low rates but will not receive a further discount for the duration of their fixed term.

A small number of consumers who fixed at very high rates will receive the full unit rate discount:

17p/kWh of electricity and 4.2p/kWh of gas between October and December 2022
31.8p/kWh of electricity and 6.4p/kWh of gas for January to March 2023

However, given the higher starting point, their high fixed rate tariffs may still have a unit rate that is above the EPG rates.

Any transfer to a different tariff is a matter for suppliers.

Standing charges

Average standing charges for customers on default tariffs will remain capped in line with the levels set (in Great Britain) by Ofgem for the default tariff cap from 1 October 2022 to 31 March 2023, at 46p per day for electricity and 28p per day for gas, for a typical dual fuel customer paying by direct debit.

Question 3

How the Energy Price Guarantee will be applied to energy bills in Northern Ireland

Accepted Answer

For customers in Northern Ireland, the Energy Price Guarantee reduces the amount you can be charged per unit of gas or electricity, so a typical household in Northern Ireland using electricity and gas as their main fuels will pay an annual equivalent of around £1,950.

The scheme in Northern Ireland will operate broadly as described for Great Britain, however there are some differences because of the different way the electricity and gas markets operate in Northern Ireland.

As the scheme was introduced from 1 November 2022 in Northern Ireland (1 October in Great Britain), households in Northern Ireland will receive backdated support to cover for October 2022 in the form of an increased unit rate discount:

from October 2022 to December 2022 the unit rate discount will be up to 19.9p/kWh for electricity and 4.8p/kWh for gas
from January 2023 to March 2023 the unit price discount will be up to 13.6p/kWh for electricity and 3.9p/kWh for gas ^{[footnote 2]}

These discounts will result in a typical household bill, for a house using electricity and mains gas, in Northern Ireland remaining at an annual equivalent of around £1,950 from 1 November 2022 through to 31 March 2023.

However, energy prices are not capped in Northern Ireland and energy suppliers have the flexibility to set their tariffs independently to reflect their costs of operating. Regardless of where a supplier sets their tariffs, these Energy Price Guarantee discounts will apply, but are subject to a ‘floor’ price (the minimum a household must pay) of 1p/kWh.

As in Great Britain, the Energy Price Guarantee in Northern Ireland reduces the amount households pay per unit of gas or electricity, so your exact bill amount will continue to be influenced by how much energy you use.

Question 4

If you pay for your energy as part of your rent

Accepted Answer

Your landlord will benefit from the Energy Price Guarantee if they have a domestic electricity and/or gas contract with a licensed electricity and/or gas supplier and should reflect this in the price they charge you from 1 October. Similarly, they will receive the Energy Bills Support Scheme and should pass it on to you. We have legislated to ensure this happens.

Your landlord should pass on the discount irrespective of how you pay for your energy use. If they charge you based on your usage, they must do this at the same price as they pay, including the Energy Price Guarantee (see Ofgem’s guidance on ensuring customers are being charged no more than they should). If, on the other hand, you pay an “all inclusive” rent incorporating a fixed charge for energy use, your landlord should pass the Energy Price Guarantee to you if provided for in your tenancy agreement.

If your landlord has a non-domestic contract, they may benefit from the Energy Bill Relief Scheme depending on when they signed the contract. If so, they should pass the savings on to you.

Question 5

Other energy affordability schemes

Accepted Answer

The EPG is in addition to a number of other ways the government is helping people with their energy bills.

Alternative Fuel Payment - for those who don’t use mains gas

The Alternative Fuel Payment (AFP) will provide a £200 payment to UK households that use alternative fuels for heating instead of mains gas. This includes, for example, heating oil, LPG, coal, and biomass. The details of when this payment will be made will be confirmed shortly. The government is committed to delivering this support to customers as fast as possible.

Energy Bills Support Scheme

The Energy Bills Support Scheme provides a further £400 universal support for UK households this winter.

Energy Bills Relief Scheme

The Energy Bills Relief Scheme provides help for businesses, charities and public sector organisations this winter:

in Great Britain
in Northern Ireland

Other help

Find out what other payments are available that can help with your energy bills.

Energy billing often works to three decimal places. The discount rates to three decimal places in Great Britain will be 31.840p/kWh for electricity and 6.424p/kWh for gas. ↩
Energy billing often works to three decimal places. The discount rates to three decimal places in Northern Ireland will be 13.608p/kWh for electricity and 3.893p/kWh for gas. ↩

Energy Price Guarantee

How the Energy Price Guarantee is applied to energy bills in Great Britain

Ofgem Price Cap