As part of the 2023 Spring Budget, the Chancellor has announced that the Energy Price Guarantee will be extended at its current level of £2,500 for another three months until June 2023.
- In September 2022, the Energy Price Guarantee (EPG) was introduced in an effort to help domestic customers with soaring fuel bills.
- The current Chancellor announced in the Autumn Statement 2022, that the EPG would rise in April 2023 from £2,500 to £3,000. This was still expected to be below the price cap set by Ofgem of £3,280.
- In the 2023 Spring Budget, the Chancellor has announced that this rise will not take place until July 2023 and the EPG will remain at £2,500 from April 2023 until June 2023.
It is expected that the extension of the EPG will save the average family £160. In total, the average family will have saved around £1,500 since the introduction of the EPG.
Whilst the EPG will rise in July 2023, it is predicted that energy prices will have fallen below £3,000 by then.
It was also announced that the premium applied to energy provided via a pre-payment meter will be scrapped and those customers will now pay the same rates as those on direct debit.
Useful links
Spring Budget 2023: at a glance
Freeview summary of the measures announced in the Budget 2023
External links
Energy bills support extended for an extra three months.