{"id":2845,"date":"2022-09-23T16:31:43","date_gmt":"2022-09-23T08:31:43","guid":{"rendered":"https:\/\/www.pacificprime.co.uk\/blog\/?p=2845"},"modified":"2022-09-23T16:39:07","modified_gmt":"2022-09-23T08:39:07","slug":"the-uks-energy-bill-relief-scheme-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.pacificprime.co.uk\/blog\/the-uks-energy-bill-relief-scheme-what-you-need-to-know\/","title":{"rendered":"The UK\u2019s Energy Bill Relief Scheme: What you need to know"},"content":{"rendered":"

As the cost of living crisis in the UK continues to hammer down on households, the latest government effort could offer some much-needed relief. From October 1st, 2022, typical household electricity bills will be capped at GBP \u00a32,500 a year for the next two years. The government\u2019s initiative comes at a time when energy prices in the UK are soaring, amidst the highest rates of inflation the country has seen since the early 1980s. We take a closer look at the UK\u2019s Energy Bill Relief Scheme in this Pacific Prime UK<\/a> article.<\/p>\n\n

Why are electric bills going up in 2022?<\/h2>\n

Before we discuss the UK energy price cap, it\u2019s important to address the question on everyone\u2019s mind: what affects the changes in energy prices?<\/p>\n

You\u2019ve likely already heard about the energy crisis, but may be wondering what it means for your electricity bills. Many countries, including the UK, are being affected by the ongoing shortage of energy globally. Once countries started to recover from the COVID-19 pandemic, demand for gas went up.<\/p>\n

However, a shortage in supply prevented demands from being met, thereby resulting in rising gas prices in 2021. The problem was exacerbated by less renewable energy (e.g. from wind and solar sources) and the need for heating during cold winter months. Most recently, the war in Ukraine has affected supplies and increased prices even more.<\/p>\n

What the new energy plan means for you<\/h2>\n

You\u2019re probably wondering what the new energy cap means for you and, more importantly, how much you will have to pay. You\u2019ll still have to pay for the electricity and gas you use, however, the new price cap places a limit on what suppliers can charge for each energy unit. Typical households, or ones that use 2,900 kWh (kilowatt hours) of electricity a year and 12,000 kWh of gas a year, will not have to pay more than GBP \u00a32,500 from October.<\/p>\n

Without the price cap, your annual bill would have been GBP \u00a33,549. For dual fuel customers making direct debit payments, the average electricity price per kWh in 2022 in the UK will be limited to GBP \u00a334, while the average gas price per kWh in 2022 in the UK will be limited to GBP \u00a310.30.<\/p>\n

The \u201cenergy price guarantee\u201d applies to all households in England, Wales, and Scotland, while Northern Ireland will have access to the \u201csame level of support\u201d. This plan will last two years.<\/p>\n

Most households are not considered typical<\/h3>\n

Naturally, you\u2019ll have to pay more if you use more. But on top of that, it\u2019s important to consider that most households aren\u2019t truly typical since factors like the number of residents, property type, and energy consumption all count. An example from the UK government<\/a> suggests the following prices according to the type of property:<\/p>\n