This article will outline the Energy Price Guarantee, a new measure announced by the Government on the 8th of September to provide further support for energy customers. This is in addition to the Energy Bill Support Scheme.
The Energy Price Guarantee (EPG) and Government Energy Price Guarantee (GEPG) are the same thing, you may have heard the name used interchangeably in the media or publications.
TABLE OF CONTENTS
- What changes to energy support has the new PM announced?
- When will the Energy Price Guarantee be available?
- How will this change my Direct Debit?
- How is So Energy preparing for the changes?
- When will I have an update?
What changes to energy support has the new PM announced?
Prime Minister Liz Truss has announced more financial support for household energy bills this winter, in addition to the Energy Bills Support Scheme (EBSS).
The Government has outlined its Energy Price Guarantee (EPG) that caps energy prices for typical households at around £2,500 a year, for the next two years. This is a cap on the cost of each unit of gas or electricity a household uses.
Remember, your actual annual costs will depend on how much energy you use so your actual yearly bill could be greater or smaller than £2,500.
The PM will continue to honour the Energy Bills Support Scheme that was introduced under Boris Johnson, giving homeowners an additional £400 discount on their energy bills over the next 6 months, starting 1 October.
As initially planned, the new Energy Price Guarantee changes will take effect on 1 October and are expected to last 3 months. The Government expects to put in place a more lasting support from 1 January with the same intention to cap annual energy charges at around £2,500 for a typical household.
Find out more about government support on our blog.
The EPG will reduce the unit rates for gas and electricity from the values initially announced under Ofgem's price cap plans at the end of August - but the standing charges will not be affected and will rise in line with that announcement.
When will the Energy Price Guarantee be available?
From 1 October, all customers on our standard variable tariff So Flex will benefit from the Energy Price Guarantee and all our electricity customers will also benefit from the Energy Bills Support Scheme. The Government has announced the new unit rates and you can check them here. Daily standing charges are not discounted or affected by the EPG and will rise in line with Ofgem's initial Price Cap plans for 1st October.
What will I need to do to receive the Energy Price Guarantee discount?
Don't worry, there's nothing for customers to do - we'll handle all of that for you and apply the discount automatically if you're on an eligible tariff - see below for which tariffs will benefit from the EPG.
Which tariffs will be affected by the Energy Price Guarantee?
All customers on our standard variable tariff, So Flex, and customers on some of our fixed rate tariffs will benefit from the Government’s Energy Price Guarantee. Because we have tens of thousands of different fixed rate tariffs, here we’ve summarised which tariffs are eligible for the discount.
The Government’s goal is to set the energy bills of typical-use households at around £2,500 a year by offering subsidised energy rates. For over 70% of our fixed tariffs, the unit rate is already priced below the Energy Price Guarantee unit rate, so they will not receive an Energy Price Guarantee discount.
The remaining 30% of fixed rate tariffs are priced above the discounted unit rates so will be eligible for the discount. For customers on these tariffs, the discount will bring their rates down to the discounted unit rates. This will be reflected in your monthly statement.
A very small number of customers fixed their energy at a high price and so, despite being eligible for the discount, their discounted unit rates will still be higher than the Energy Price Guarantee’s target rates.
At the moment, our only available tariff is So Flex, our standard variable tariff. If your fixed rate tariff is coming to an end, you will automatically be moved onto So Flex.
How will this change my Direct Debit?
All customers will see a change in their Direct Debit to reflect the new rates set by the Government and the impact of the related Energy Bills Support Scheme. Here, you can check how the Energy Price Guarantee will affect your tariff rates, but as a guide, we expect:
low energy users to pay less than they do today
typical users to pay about the same as they do today
high users to pay more than they do today but still a lot less than what was previously projected
How is So Energy preparing for the changes?
Helping you is our priority, so we’re working closely with the Government to implement the new Energy Price Guarantee on 1 October. This will be challenging, but rest assured we’re doing everything we can to make this happen. We will share more information with you soon.
When will I have an update?
So Energy is working with the Government to finalise the details of how we’re implementing the Energy Price Guarantee. We’ll update you as soon as we have more information - continue to check back on this FAQ. Our blog is a really useful source of information for your energy-related questions, including details of the Energy Bills Support Scheme, a guide to energy assistance ahead of winter, reasons for energy prices changes, and much more.
Last updated: Thu, 29 Sep, 2022 at 3:53 PMPrint this page
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