Spring Finances 2023: power invoice assist prolonged

Chancellor Jeremy Hunt has introduced within the Spring Finances that the present stage of presidency funding to assist shield individuals from larger power payments might be prolonged for 3 months.

The Vitality Worth Assure (EPG) is a short lived measure that caps power 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 power payments referred to as the Vitality Worth Cap. Below this measure, the typical annual fuel and electrical energy invoice would have been £4,279.

The federal government’s Vitality Worth Assure funding was on account of be diminished from this April, by £500, so common power payments had been set to rise to £3,000 yearly. However the three-month extension means the rise received’t come into impact till July, when it’s anticipated that decrease wholesale fuel costs will result in diminished power payments.

At the moment the Vitality Worth Assure is about to switch the Vitality Worth Cap till April 2024.

Is the Vitality Worth Assure the utmost quantity you’ll pay for power payments? 

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

What you pay below the Vitality Worth Assure might be decided by how a lot power you utilize, the kind of tariff you’re on, and the way you pay your invoice.

And costs differ from area to area inside the UK, based on charges set by Ofgem, as a result of transport prices to ship fuel and electrical energy are taken under consideration.

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

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