The government have announced who will continue to receive the Energy Price Guarantee from July 1st and how.
Households without a pre-payment meter in Great Britain
From 1 July 2023, households without a pre-payment meter will no longer receive an Energy Price Guarantee discount on their gas and electricity bills.
This is because the Ofgem price cap will be lower than the Energy Price Guarantee level, meaning households will pay the rate set by the price cap.
The Energy Price Guarantee will remain in place as a safety net until the end of March 2024 should energy prices increase above £3,000 per year.
Households with a pre-payment meter in Great Britain
As announced in the government’s Spring Budget, from 1 July the average pre-payment meter (PPM) user will no longer pay more for their energy than those on direct debit, saving around £21 per year.
This will be delivered through the Energy Price Guarantee by providing a unit rate discount. The discount incorporates the differences between PPM and direct debit costs in both unit rates and standing charges.
From 1 July to 30 September 2023, the Energy Price Guarantee PPM discount will be applied to gas unit rates only, as the combined unit rate and standing charge for electricity PPMs will already be less than the equivalent for Direct Debit. The gas unit rate discount will therefore be (excluding VAT):
● 0.249p/kWh for gas from July to September 2023. The specific PPM unit rate each customer sees will vary by region. See the full list for July-September 2023
The discount will be reviewed every 3 months in line with future changes to Ofgem’s price cap.