Energy Price Guarantee up to 30 June 2023
Updated 1 January 2024
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This page explains how the EPG operated between 1 October 2022 and 30 June 2023.
From 1 October 2022 up until 30 June 2023 the Energy Price Guarantee provided a support rate discount to all households with a domestic gas and/or electricity contract. This brought a typical household energy bill for dual-fuel gas and electricity down to:
- around £2,500 per year in Great Britain
- around £2,109 per year in Northern Ireland
The scheme operated, for the most part, in the same way for households across the whole of the UK. There were a few differences for those in Northern Ireland because of the different way the Northern Ireland energy market operates.
EPG rates in Great Britain
The specific unit rates paid by each customer varied by region and payment type. See the full list of rates by region and payment type:
- for October to December 2023 prepayment meter rates
- for July to September 2023 prepayment meter rates
- for April to June 2023
- for January to March 2023
- for October to December 2022
If you were 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, received the full unit rate discount (excluding VAT):
- from April to June 2023 reductions of 16.6p/kWh for electricity and 2.2p/kWh for gas [footnote 1]
- from January to March 2023 reductions of 31.8p/kWh for electricity and 6.4p/kWh for gas
- from October to December 2022, unit rate discount of 17p/kWh for electricity and 4.2p/kWh for gas
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 were on a pre-payment meter and variable contract
Prepayment meter customers on variable contracts received the full unit rate discount (excluding VAT):
- from April to June 2023, 16.6p/kWh for electricity and 2.2p/kWh for gas
- 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 discount was applied automatically by the supplier.
If you were on a fixed rate tariff
Fixed rate tariff customers had the same support as those on variable tariffs, but rates were 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 EPG.
For fixed rate tariffs that currently have unit rates above the floor price, these unit price reductions apply (excluding VAT):
- up to 16.6p/kWh for electricity and 2.2p/kWh for gas from April to June 2023
- up to 31.8p/kWh for electricity and 6.4p/kWh for gas from January to March 2023
- up to 17p/kWh for electricity and 4.2p/kWh for gas for October to December 2022
The floor unit prices varied by region and payment type but for electricity averaged at 34p/kWh and for gas averaged at 10.3p/kWh for direct debit customers in Great Britain with typical energy consumption. These floor prices remained unchanged from 1 October 2022 through to 30 June 2023.
Customers on fixed rate tariffs that were already below the floor unit rate remained on those rates but did not receive a further discount for the duration of their fixed term.
Some consumers who fixed at very high rates received the full unit rate discount (excluding VAT) of:
- 16.6 p/kWh for electricity and 2.2p/kWh for gas from April to June 2023
- 31.8p/kWh of electricity and 6.4p/kWh of gas for January to March 2023
- 17p/kWh of electricity and 4.2p/kWh of gas between October and December 2022
However, given the higher starting point, their high fixed rate tariffs may still have had a unit rate above the EPG rates.
For consumers on fixed-term default tariffs, the EPG applied in the same way as other fixed rate tariffs.
Standing charges
Between April and June 2023 average standing charges for customers on default tariffs remained capped in line with the levels set (in Great Britain) by Ofgem.
How the EPG applied in Northern Ireland
The scheme in Northern Ireland operated broadly as described for Great Britain, however there were some differences because of the different way the electricity and gas markets operate in Northern Ireland.
EPG rates in Northern Ireland
The EPG scheme was introduced later in Northern Ireland (on 1 November 2022 rather than 1 October 2022 as in Great Britain). To make up for this, households in Northern Ireland received an additional discount from November (excluding VAT) of:
- 2.91p/kWh for electricity
- 0.61p/kWh for gas
This additional backdated support ended in March 2023. A typical household using electricity and mains gas would have seen their energy bill increase from £1,952 to £2,109 (annual equivalent).
Unit rate discount
- from April to June 2023, up to 3.8p/kWh for electricity and 2.6p/kWh for gas[footnote 2]
- from January 2023 to March 2023, up to 13.6p/kWh for electricity and 3.9p/kWh for gas
- from October 2022 to December 2022, up to 19.9p/kWh for electricity and 4.8p/kWh for gas
Energy prices were 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 EPG discounts will apply, but are subject to a ‘floor’ price (the minimum a household must pay) of 1p/kWh.
As in Great Britain, the EPG in Northern Ireland reduced 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.
If you didn’t get support directly from the EPG
Some people did not get support directly from the guarantee because of the way they get their energy or pay for their bills. In these cases, support should have been passed through to you in other ways - see:
More about the pass-through requirements:
- Ofgem’s guidance on ensuring customers are being charged no more than they should
- Pass-through requirements for landlords
- Pass-through requirements for heat networks
Energy Price Guarantee from 1 July 2023
Find out how the EPG operated from 1 July 2023 to 31 March 2024.
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Energy billing often works to 3 decimal places. The discount rates to 3 decimal places in Great Britain were 16.570p/kWh for electricity and 2.185p/kWh for gas. ↩
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Energy billing often works to 3 decimal places. The discount rates to 3 decimal places in Northern Ireland were 3.770p/kWh for electricity and 2.603p/kWh for gas. ↩