Energy bills have been frozen at around £2,500 a year for most households under plans announced by Liz Truss today.
The new Prime Minister has said households on the Ofgem energy price cap will have their bills frozen.
This means a planned October price cap rise which would see average yearly energy bills hit £3,549 has been avoided.
The Ofgem price cap applies to people on variable rate energy deals - around 80% of the country, or 24million people.
The Prime Minister said: "We are supporting this country through this winter and next."
The Government has said the average UK home will not pay more than £2,500 a year for energy from October 1, 2022.
The scheme is called the "Energy Price Guarantee".
The £400 energy bill discount previously announced by the Government will bring down bills further - to around £2,100 on average.
Next year there will be no £400 discount, so bills will be £2,500 for the typical home.
Some homes will pay more than this, and some less, depending on how much energy they use.
Speaking in the Commons today, Ms Truss said it is a "moment to be bold", as she admitted there "will be a cost to this intervention".
"This Government is moving immediately to introduce a new energy price guarantee that will give people certainty on energy bills, it will curb inflation and boost growth," she added.
A new six month scheme will also be introduced for busiensses facing surging energy bills, offering "equivalent support as is being provided for consumers".
It will apply to all non-domestic energy users including business, schools and charities.
The Government said there will be a review in three months' time to consider where this money should be targeted.
Ms Truss's government hopes the plan will curb inflation by up to five percentage points after the Bank of England forecast it to hit over 13% in October.
But the prime minister will only set out the cost at a fiscal event later this month, with reports suggesting it could top £150 billion.
What is the Ofgem energy price cap?
Despite what its name suggests, the price cap isn't a limit on how much you pay for energy.
Instead, it sets a limit on the rates a supplier can charge for each unit of gas and electricity you use.
This means you may pay more or less, depending on how much energy you use.
The price cap is normally altered every three months, in January, April, July and October.
However, it is now being suspended for two years, from October 1.
