ENERGY customers are waiting to see how much they’ll be charged by their supplier following the new price cap.
Prime Minister Liz Truss confirmed energy bills would be frozen at £2,500 per household for two years under a new Energy Price Guarantee.
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The announcement means households will save £1,000 a year on average.
From October 1, households will have bills protected.
However, the cap is just on what firms can charge customers. Your bill could be higher, based on your energy usage.
The price cap is currently £1,971 a year – but it had been due to rise to £3,500 a year.
The announcement came as Ms Truss announced a package of support to ease the cost of living crunch.
Now, customers should expect to be contacted by their suppliers to find out how the new price cap affects them.
Those with Scottish Power will be contacted between now and 19 September to find out what the new prices will be.
Scottish Power’s chief executive, Keith Anderson, told the BBC that the government’s energy announcement was a “massive step forward” because it provides some idea of how much customers will pay for energy during winter.
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“What this does is it buys us time,” he said. “It’s now about how we use that time and what we do in the next 18 months and two years.”
Other energy suppliers will be in touch with customers in due course.
For example, E.On customers can sit back because the supplier said it will implement the government scheme across its tariffs.
Customers on a fixed tariff with them won’t need to change their contract either.
Greg Jackson, chief executive and founder of Octopus Energy, told the BBC that many suppliers are still analysing the details of Ms Truss’ plan, so customers should “sit tight and wait to hear from their energy supplier”.
“Nothing will change until 1 October and we’ll be in touch with everyone before then,” he added.
With Ms Truss’ plan in place, households are still due to get their £400 rebate this winter – it will be automatic and distributed through six instalments.
But millions of households will still be entitled to thousands of pounds in additional support.
The amount of financial help you’ll be eligible for depends on your circumstances – but every household will get a discount on their energy bills.
Millions of households on Universal Credit and legacy benefits will have already received the first half of the £650 cost of living payment.
The energy bill support on offer was first announced by former chancellor Rishi Sunak back in May.
What other help is available?
From September the second, one million people receiving tax credits started to get the first half of the £650 cost of living payment.
The money will be paid in the same way you usually get your tax credits.
And from September 20, over six million people with disabilities are set to receive £150 to help with the rising cost of living.
From October the first, all UK households are set to receive the £400 energy bills rebate.
The payment will be made between October and March next year.
Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.
We’ve listed how the leading energy suppliers plan to pay households the discount and are waiting on others to respond.
The way you’ll be paid will depend on how you pay for your energy.
If you’re on a credit meter the discount will come off your bills, but if you’re on a prepayment meter you’ll get a voucher.
Check with your supplier to confirm how you’ll receive the cash.
In November, a £300 one-off “Pensioner Cost of Living Payment” will be paid out to eight million households.
It will be given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.
Payments for the £150 Warm Home Discount scheme will likely begin from December.
