The new Energy Price Guarantee (EPG) for households across the UK is now in force and will see customers on the standard tariff with typical usage pay on average £2,500 per year for their energy bills until 2024.
While this new t measure effectively replaces Ofgem’s price cap, it does not mean £2,500 is the maximum someone could pay for their energy bills over the next 12 months. The scheme will limit the price suppliers can charge customers for units of gas and electricity, but in real terms, if you use more energy, you will pay more and if you use less, you will pay less.
The new EPG is expected to save the average household £1,000 each year based on current energy prices. It also comes in addition to the £400 energy bills discount for all households and together, they will bring costs close to where the energy price cap stood until the end of September at £1,971.
However, Advice Direct Scotland, is highlighting that the £2,500 for a typical household is still double the price cap of last winter and, along with rising inflation, is already resulting in many households struggling financially.
Colin Mathieson, spokesperson for Advice Direct Scotland, said: “We are in an incredibly challenging period. We know that many Scottish citizens are facing significant financial pressures and this guarantee will not protect households struggling with the jump in prices earlier this year.
“It’s important for people to know that support is available. At Advice Direct Scotland, we have a wide range of services available to everyone across the country, at no cost, regardless of personal circumstance.”
Advice Direct Scotland services
Below is an overview of the services available, for free to anyone living in Scotland.
Support with energy bills
Advice Direct Scotland’s energyadvice.scot service can help with understanding energy bills, issues with payment meters, complaints and disputes and switching suppliers.
Expert advisers can provide free, practical advice on the support and assistance available.
They can also help with and make referrals to sources of support for those who need help with rising energy costs, such as the Scottish Government’s Home Heating Support Fund.
The fund aims to provide financial relief to energy consumers who are experiencing significant financial hardship or are rationing energy to get by.
Individual households can now also apply through www.homeheatingadvice.scot, by choosing the ‘Household Application’ route, provided they have received money and/or energy advice from an accredited advice agency.
Advice Direct Scotland can also make referrals to the fund on a customer’s behalf.
Help with debt
Rising inflation and energy prices continue to exacerbate debt problems for many Scots, and are creating new issues for people who may never have found themselves in debt before.
Advice Direct Scotland, which runs Scotland’s national debt service moneyadvice.scot, has seen an increase in the number of people reaching out for help with their finances.
The service saw an 80 per cent increase in cases during the second quarter of 2022 (July to September) when compared to the previous quarter (April to June).
Moneyadvice.scot provides free information and support on a wide range of debt-related issues.
Specialist debt and money advisers can work with people to assess their current situation, look at their income and outgoings, and consider what to do next.
They can be contacted on 0808 196 2316 between 9am-5pm, Monday to Friday.
Claiming everything you are entitled to
Around half a million Scots do not claim all the benefits and support they are entitled to.
Advice Direct Scotland’s free online checker tool, available at www.advice.scot, is tailored for Scotland and allows people to check their entitlement to both devolved and reserved benefits.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out three times each week - sign up here.
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