Will energy bills increase in July 2023 when the energy price guarantee ends? | British News
Energy bills were a key driver of this The crisis is leading to a cost-of-living crisis as some households struggle with significantly rising heating bills, especially in winter.
In response, then Prime Minister Liz Truss announced in October 2022 that the government would introduce the Energy Price Guarantee – meaning a typical UK household would pay up to £2,500 a year to save consumers an average of £1,000 a year.
In March 2023, Chancellor Jeremy Hunt extended the program by three months in his spring budget, stating: “High energy bills are one of the biggest concerns for families, which is why we are keeping the energy price guarantee at current levels.”
However, with the end of June EPG deadline fast approaching, many families will be concerned about what might happen to their energy bills.
Here’s what you need to know.
Will Energy Bills Rise in July 2023?
The first thing to consider is that the energy price guarantee does not end in July 2023 – but increases by 20%.
This means the energy price guarantee is now set at £3,000 instead of £2,500.
In theory, that means energy bills could go up. However, It is generally expected that this is not the case.
In fact, many experts are predicting this energy The bills will go down from July.
This is because Ofgem’s new price cap will come ahead of July’s EPG and is expected to be much lower than that of the EPG, and customers will pay whichever is cheaper.
The financial guru behind money-savings expert Martin Lewis has forecast a 17.5% drop if the OPC comes into force and spoke to Neil Kenward, energy regulator Ofgem’s director for strategy and decarbonization, on This Morning.
When asked to provide a figure, the Ofgem executive declined to comment on a specific figure, calling the information “sensitive” until its release date next Thursday, adding that Ofgem “has not yet finalized the figure “.
However, Mr Kenward said: “I realize the figure will be well below the £2,500 limit that currently applies to the average annual bill.”
The news will be welcomed by anyone struggling with energy costs this year.
MORE: Who is eligible for £400 energy support as the May 31 deadline nears?
MORE: Soaring energy costs mean people with disabilities face ‘cost of breathing crisis’
Follow Metro on our social channels, on Facebook, Twitter and Instagram
Share your views in the comments below