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.

Back

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.


Squirrel ad


Are you enjoying our content? 

Thousands of accountants and advisers and their clients use rossmartin.co.uk as their primary TAX resource.

Register now to receive our FREE weekly SME Tax News update