What the deal is with the freeze

gefnew

As above this is what is going to happen.
Energy firms will contact customers over bill cap - BBC News

GingerTim

I think energy firms will contact customers in regard to the bill cap.

[Deleted User]

A press release or media article with no actual information is not a good description of "what the deal is with the freeze".

Spies

[Deleted User] said:

A press release or media article with no actual information is not a good description of "what the deal is with the freeze".

This is it though, government rushes this stuff out with no information passed on to the people that matter so we are all just left asking even more questions.

[Deleted User]

Spies said:

[Deleted User] said:

A press release or media article with no actual information is not a good description of "what the deal is with the freeze".

This is it though, government rushes this stuff out with no information passed on to the people that matter so we are all just left asking even more questions.

Correct.  So we should wait for some concrete details that we can digest and then use to offer accurate and helpful advice.

Making new threads every time there is a press release that doesn't actually add any information just confuses the issue.

We will get information eventually, it just isn't here yet.

gefnew

From eon next about the freeze.
The government has announced (8 Sept) changes to how energy bills will be charged to help reduce the impact of the proposed October price cap. The new Prime Minister, Liz Truss, has said that bills will be held at £2,500, under a scheme called the Energy Price Guarantee (EPG), for the next two years. This means that the October price cap, announced by Ofgem (26 August) will no longer be implemented in full for customers.

​​​​​​​You will still pay for the gas and electricity you use. But the government's Energy Price Guarantee will limit the price that we can charge for each unit of energy. However, if you use more gas or electricity, you will pay more. The scheme does not cap your bill at £2,500, your bill amount is still based on how much energy you use.

Energy Price Guarantee.
To limit the amount customers' bills go up by, the government will compensate energy firms for the difference between the wholesale price for gas and electricity they pay and the amount they can charge customers.

From 1 October the government will supplement what customers pay for energy which means that instead of the typical household dual-fuel bill rising to £3,549, a typical household will now see an average annual bill of £2,500. You will pay above this amount if you use more energy than you would do normally. The government says that it will pay for the subsidy, which means that customers will not be expected to repay the support.

Customers need to take no action as we will implement the government's Energy Price Guarantee scheme for all customers across our tariffs. For example, customers on a Fixed Tariff will not need to change their contract. We will contact all customers with how the government's Energy Price Guarantee scheme will affect them, in the coming weeks.

Pre-payment customers.
For pre-payment meter customers, the Energy Price Guarantee will be applied to the rate you pay for each unit of energy, so the money you put on the meter will last longer than would otherwise have been the case this winter.

As is the case with the ‘price cap’ under the Energy Price Guarantee there will continue to be a small difference between the unit cost for a pre-payment meter customer and other bill payers.

Fixed tariff customers.
If you’re on a fixed tariff, the Energy Price Guarantee will protect you in the same way that it protects standard variable tariff (SVT) customers. Customers do not need to contact us, we will be in touch with you shortly.

Businesses and SME.
A new six-month scheme for businesses and other non-domestic energy users (including charities and public sector organisations like schools) will offer equivalent EPG support. After this initial six-month scheme, the government will provide ongoing, focused support for vulnerable industries. There will be a review (3 months) to consider where this should be targeted to make sure those most in need get support.

We’re working with the government and Ofgem to find out how these changes will affect our customers and will update this page when we have more information.

Rising bills help.
We want to reassure you that we are dedicated to helping you where we can. We have put together some helpful resources where you can access support from us, charities and the government.
​​​​​​​
What should I do about my energy tariff?
Regardless of the tariff you're on, you are protected by the new EPG and do not need to take action. We'll be in touch with customers on fixed tariffs about next steps.

Contact our Energy Specialists if you’re having difficulty.
​​​​​​​Our Energy Specialists are here to help you if you’re concerned about your energy bills. If you’re struggling to pay, please visit our help page to find out more about how we can support you. You can reach out to our Energy Specialists for personal advice on Facebook and Twitter.

​​​​​​​Blog updated 1630hrs 08/0922

[Deleted User]

Which again, is a massive set of text that says nothing useful.

It's a placeholder to look like they're being helpful but because they don't know details, none of the rest of us do either.

[Deleted User]

Actually, there's one new piece of information in there that I hadn't spotted before.

It confirms that there will still be a difference in the cap between different payment methods.  We didn't know that until now.

alibean121

Spies said:

[Deleted User] said:

A press release or media article with no actual information is not a good description of "what the deal is with the freeze".

This is it though, government rushes this stuff out with no information passed on to the people that matter so we are all just left asking even more questions.

It’s hard to know if they had the details ready to announce or not before events got away from them somewhat yesterday.

gefnew

Update on the energy freeze price per fuel average.
Energy bills support factsheet: 8 September 2022 - GOV.UK (www.gov.uk)

Zaul22

Hmmm... It says for dual fuel customers, while probably just a wording issue, it could be interpreted as electricity only could be a different rate.