Energy Price Guarantee 2023: What does the £2,500 energy cap mean, how long will it last and what are the Yorkshire rates? Everything you need to know about Energy Price Guarantee

Prime Minister at the time, Liz Truss, proposed the energy price cap to reduce the extent of price increases for domestic customers. Under the scheme, the government sets maximum prices for gas and electricity and compensates energy suppliers for offering these at below cost prices.

Maximum daily standing charges are set by Ofgem’s price cap and the EPG level is usually expressed as a yearly figure. This is the annual bill that both gas and electricity direct debit customers with typical consumption levels would face if these prices stayed constant across an entire year.

It was originally set at £2,500 for two years from October 2022 to September 2024, then was changed to £2,500 for the first nine months from October 2022 to June 2023 followed by a rise to £3,000 for the following nine months from July 2023 to March 2024. Annual bills are not capped. Households which use more energy will pay more, those which use less will pay less.

Rates of bills vary depending on the region and are higher for prepayment metre customers and those paying quarterly bills.

The price increases under the first six months of the EPG have been alleviated by the £400 Energy Bill Support Scheme payment which is being paid in six individual monthly instalments from October 2022 to March 2023.

What does the £2,500 Energy Price Guarantee mean?

The EPG protects customers from increases in energy prices by restricting the amount suppliers can charge per unit of energy used.

The EPG has been extended for an extra three months at its current level from April to the end of June. This is expected to bring a typical household energy bill in Great Britain for dual-fuel gas and electricity down to £2,500.

The energy industry is working to update customer tariffs and alert customers of any new rates as soon as practically possible. Due to the restricted number of days before April 1, there may be implementation delays affecting a small number of customers.

If your tariff was not updated in time, your energy supplier will offer the appropriate correction for any April 1 inaccuracies as soon as possible after this date.

The scheme operates mostly in the same way for households across the UK.

To get the discount you won’t need to apply and there is no need to contact your energy supplier, the discount is automatic.

The government warns that if you get a message telling you that you need to apply, or asking for your bank or credit card details, this could be a scam. You can report messages you think are suspicious on the government website.

Prime Minister Rishi Sunak said: “We know people are worried about their bills rising in April, so to give people some peace of mind, we’re keeping the Energy Price Guarantee at its current level until the summer when gas prices are expected to fall.

“Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.”

Chancellor Jeremy Hunt said: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the Energy Price Guarantee at its current level.

“With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”

Energy secretary, Grant Shapps, said: “Putin’s illegal war has cost British families, which is why we’ve stepped in to pay around half of the typical household energy bill.

“With wholesale prices falling families will start to benefit, but in the meantime we’re stepping back in with the Energy Price Guarantee to prevent the typical electricity and gas bill exceeding £2,500. It’s just part of our plan to help families this winter.”

What are the Yorkshire rates for the Energy Price Guarantee cap?

The average EPG unit rates for standard variable tariffs from January 1 to March 31, 2023 for Yorkshire are shown below. These are the maximum unit rates suppliers can charge for tariffs that are subject to the Ofgem price cap. Suppliers can also charge less than these rates.

Other payment method (January to March)

Electricity: Single-Rate Metering Arrangement - 31.43 pence per kilowatt hour (p/kwh) excl VAT

Gas - 9.76 p/kwh excl VAT

Standard credit (January to March)

Electricity: Single-Rate Metering Arrangement - 34.80 p/kwh excl VAT

Gas - 10.62 p/kwh excl VAT

Pre-payment metre (January to March)

Electricity: Single-Rate Metering Arrangement - 30.45 p/kwh excl VAT

Gas - 10.24 p/kwh excl VAT

The average rates below apply from April 1 to June 31, 2023.

Other payment method (April to June)

Electricity: Single-Rate Metering Arrangement - 30.82 p/kwh excl VAT

Gas - 9.76 p/kwh excl VAT

Standard credit (April to June)

Electricity: Single-Rate Metering Arrangement - 33.35 p/kwh excl VAT

Gas - 10.39 p/kwh excl VAT

Pre-payment metre (April to June)

Electricity: Single-Rate Metering Arrangement - 29.73 p/kwh excl VAT

Gas - 9.99 p/kwh excl VAT