Posted on 30th July 2018

New Energy Price Cap

“For far too long older people, hard-working families and those on low incomes have been subject to rip-off energy tariffs. Our energy price cap will protect households from unfair price rises in time for this winter when people can feel the pinch more acutely. We know that the cost of living is still a challenge for some families and today marks an important step in helping people to keep more money in their pockets.” – Theresa May

The prime minister has announced an energy price cap, which will launch this winter, affecting 12 million households.

The Domestic Gas and Electricity Bill will place a requirement on Ofgem to cap default and standard variable energy tariffs, which are the some of the most expensive rates in the market. The exact amount of the energy price cap has not been announced yet.

The government has also announced that it’s £6 Billion Home Energy Efficiency Scheme will be 100% focused on low income, vulnerable and fuel poor households. This involves a multi-measured approach by allowing the replacement of inefficient or broken heating systems, and installing insulation or other technologies. 15% of these measures are to be delivered in rural homes, and 17,000 solid walled homes are to be treated each year.

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