Chancellor Jeremy Hunt extended the Energy Price Guarantee for a further 12-months from April at the autumn statement.
The support package will be slightly tapered, with average household bills priced in at £3,000 per year rather than £2,500 per year for the extended phase of the scheme – based on current wholesale price forecasts.
This equates to a £700-plus saving for energy users, with Cornwall Insight calculating the price cap at £3,739 per year from April in current market conditions.
It also predicts the full cost of the Energy Price Guarantee will rise to £39bn, which is considerably less than the £100bn-plus estimates for the original scheme before it was slashed by Jeremy Hunt, but is still around 60 per cent of the cost of the historic furlough package during the pandemic.
Read more at City A.M.
