The way the Government has done this is to put a limit on the amount of money that energy providers can charge you for each unit of gas and electricity. The new rates will be 34p/kWh and 46.4p/day standing charge on electricity and 10.3p/kWh and 28.5p/day standing charge on gas although the exact prices will vary slightly by region and how you pay.
What is a standing charge?
A standing charge is added to most gas and electricity bills. It's a fixed daily amount that you have to pay, no matter how much energy you use. A standing charge covers the cost of supplying your property with gas and electricity. Think of it as a line rental, but for your energy.
Remember though, the prices above are for a household with typical use, so if you use more you’ll pay more, use less and you’ll pay less. These new rates are guaranteed for the next two years.
Did you know?
Paying by Direct Debit is around six percent cheaper than paying when the bill arrives, If you have fixed on a deal with higher rates, then the new Energy Price Guarantee will see those unit rates reduced.
For more information about the Energy Price Guarantee, you can visit the Government’s website. Martin Lewis has produced some helpful information on the price guarantee too.
Be on alert for fake texts claiming to be from the Government inviting you to apply for the Energy Price Guarantee. It's a scam – the £400 will be paid automatically, so you don’t need to apply. If you think you have been scammed here's what to do.
The increases for food, fuel, energy and general costs are having a massive impact on us all. With so much information being shared, keeping on top of it all can be an additional challenge. We’ve pulled together the most relevant and well sourced information and put it all in our brand new ‘Cost of Living hub’. Be sure to bookmark it and come back to it regularly for all the latest updates!
