Spring Price range 2023: vitality invoice assist prolonged

Chancellor Jeremy Hunt has introduced within the Spring Price range that the present degree of presidency funding to assist shield folks from greater vitality payments will likely be prolonged for 3 months.

The Power Worth Assure (EPG) is a short lived measure that caps vitality payments for typical households at round £2,500 a 12 months.

Earlier than the EPG was launched in October 2022, there was already a measure in place to restrict vitality payments referred to as the Power Worth Cap. Below this measure, the common annual fuel and electrical energy invoice would have been £4,279.

The federal government’s Power Worth Assure funding was resulting from be decreased from this April, by £500, so common vitality payments have been set to rise to £3,000 yearly. However the three-month extension means the rise gained’t come into impact till July, when it’s anticipated that decrease wholesale fuel costs will result in decreased vitality payments.

At the moment the Power Worth Assure is about to interchange the Power Worth Cap till April 2024.

Is the Power Worth Assure the utmost quantity you’ll pay for vitality payments? 

You’ll at all times pay for the vitality you utilize, no matter what the cap is about at. You may pay much less, however you can additionally pay greater than the cap of £2,500 a 12 months, as a result of it refers to a ‘typical’ family with ‘common’ vitality use.

What you pay underneath the Power Worth Assure will likely be decided by how a lot vitality you utilize, the kind of tariff you’re on, and the way you pay your invoice.

And costs fluctuate from area to area throughout the UK, in line with charges set by Ofgem, as a result of transport prices to ship fuel and electrical energy are taken into consideration.

Learn extra in regards to the Power Worth Assure (EPG) and the way it works.

The header picture for this text is supplied courtesy of West Coast Properties, Portishead