How much will you be forking out for your energy under the new Energy Price Guarantee? - this guide will give you an idea of what each house type is likely to pay.
The average home in the UK will save around £1,050 under the Energy Price Guarantee (EPG). It means the typical household using the expected amount of energy will pay an estimated £2,500 per year while those living in flats will save an average of £700.
Everyone with a domestic energy or gas connection will benefit from the guarantee. If you pay for your energy directly to the supplier, then it will be applied automatically.
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However, if you pay energy as part of rent, your landlord will benefit from the Energy Price Guarantee. They should pass this saving on to you, combined with the Energy Bills Support Scheme (EBSS), reports Leicestershire Live. EBSS is applied as a discount on monthly energy bills, totalling £400 from October to March.
How much you will pay under the Energy Price Guarantee on average
Houses
Those living in houses will pay an average of £ 2,650 a year for energy, saving £1,150.
Detached - pay £3,300 - saving £1,400
Semi Detached - pay £2,650 - saving £1,150
End Terraced - pay £2,450 - saving £1,050
Mid Terraced - pay £2,350 - saving £950
Bungalow - pay £2,450 - saving £1,050
Flats
Those living in flats will pay an average of £1,750 per year for for energy, saving £700.
Converted flat - pay £1,950 - saving £800
Purpose built flat - pay £1,750 - saving £650
What is the Energy Price Guarantee?
The EPG is set by Ofgem, the Office of Gas and Electricity Markets, and limits the maximum amount energy suppliers can charge you for each unit of energy. Currently, the cap is £2,500.
However, this is calculated on what the average household may use. You can still pay far more than the cap. Just two years ago the cap had been as low as £1,042, the cheapest energy has been since the policy came into force in 2019.
The cap is controversial, as it constantly rises and has been argued that it decreases competition between energy companies to offer better rates. Many claim the cap acts as a target for many suppliers.
"There is no pressure on energy companies to innovate if customers believe they are 'safeguarded' from high costs and less likely to take their business elsewhere," Uswitch says.
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