Thank you for contacting me about the Energy Price Guarantee (EPG).

It is fair to say that the past few years have seen unprecedented challenges, including the surge in energy demand after the pandemic and the implications of Russia's invasion of Ukraine. These global events have put immense pressure on living costs, affecting families across the nation. However, I can reassure you that the Government is committed to supporting households during these extraordinary times.

As you may be aware, the EPG discounts the unit cost for gas and electricity use and was introduced to give people certainty over their bills.  

This guarantee limits the amount you can be charged per unit of gas or electricity. The current price guarantee, set at £3,000, will support households between now and April 2024, ensuring that households are supported through the rest of the year. Although energy prices are currently below the level at which EPG payments would be made, it will remain in force until the end of March 2024 to protect households from price spikes, putting in place a safety net for households up and down the country.

The EPG, alongside the Energy Bills Support Scheme which gave every household £400, brings total Government support for energy bills to £1500 for the typical household since October 2022 and means that the Government has been subsidising around half of household energy bills.  In addition, many who struggle financially use pre-payment meters which is why the Government is removing the premium for those 4 million households, bringing their costs in line with comparable households on Direct Debits.

As I understand it, decreases in energy prices, including electricity, gas, and oil, are not immediately passed through to customers due to several reasons. For example, energy companies typically buy their supply in advance, allowing them to fix some of their costs. However, if the decrease in price is sustained for a long period of time, this decrease will be reflected in customer's bills.

Thank you again for all those who took the time to contact me.