Renfrewshire Council

Staff update: Cost of living - New cap on household energy bills announced

The UK Prime Minister, Liz Truss, has today announced plans to cap average household energy bills at £2,500 a year in addition to the previously announced £400 energy bills discount for all households.

A new Energy Price Guarantee will supersede the existing energy price cap and will limit the price suppliers can charge customers per unit of gas.

This means a typical UK household will pay no more than £2,500 a year on their energy bill for the next two years from 1 October 2022 - typical household bills were previously due to rise from £1,971 to £3,549 in October.*

An additional fund will be created to support those who are not covered by the cap, such as those who use heating oil, have communal heating schemes, and people in mobile home parks who pay the park-owner rather than a supplier.

Businesses will also see their energy costs capped at the same price per unit that households will pay under the UK Government's new plans, but only for six months. This will be reviewed after three months and may be extended for certain industries and vulnerable businesses.

Your energy supplier will contact you to explain what this means for your own household fuel bills, as confirmed by Greg Jackson, chief executive and founder of Octopus Energy, who said, "Companies and government are now working through the details and customers should sit tight and wait to hear from their energy supplier".

If you are worried about the rising cost of living, and what today's news will mean for your household, help and advice on how to get support from our Energy Management Unit, Advice Works service and Renfrewshire's Citizens Advice Bureau is available through our 'employee wellbeing hub' and 'help with the cost of living' webpages.

* A typical household energy use is 12,000 kWh (kilowatt hours) of gas a year, and 2,900 kWh of electricity a year. If you use more that this, your bill will be higher. (Source: https://www.britishgas.co.uk/energy/guides/average-bill.html)

Published on Thursday 08 September 2022