MSE News: energy prices to rise in April 2023 as Government scales back support

The_Green_Hornet

Within the small print of the Autumn Statement.

2.43 The government will keep the EPG under review and may revisit the parameters of the scheme, for example if the forecast cost increases significantly. The government will consult on amending the scheme as soon as is feasible after April 2023 so that those who use very large volumes of energy have their state support capped, whilst the vast majority of households can continue to benefit. This proposal is intended to ensure taxpayers do not subsidise all of the energy usage of those households with extremely high usage. This consultation will explore the best ways to ensure that vulnerable high energy users, such as those with medical requirements are not put at risk. 

What_time_is_it

The_Green_Hornet said:

Within the small print of the Autumn Statement.

2.43 The government will keep the EPG under review and may revisit the parameters of the scheme, for example if the forecast cost increases significantly. The government will consult on amending the scheme as soon as is feasible after April 2023 so that those who use very large volumes of energy have their state support capped, whilst the vast majority of households can continue to benefit. This proposal is intended to ensure taxpayers do not subsidise all of the energy usage of those households with extremely high usage. This consultation will explore the best ways to ensure that vulnerable high energy users, such as those with medical requirements are not put at risk. 

That is a really important point. Thanks @th@The_Green_Hornet

EssexHebridean

The_Green_Hornet said:

Within the small print of the Autumn Statement.

2.43 The government will keep the EPG under review and may revisit the parameters of the scheme, for example if the forecast cost increases significantly. The government will consult on amending the scheme as soon as is feasible after April 2023 so that those who use very large volumes of energy have their state support capped, whilst the vast majority of households can continue to benefit. This proposal is intended to ensure taxpayers do not subsidise all of the energy usage of those households with extremely high usage. This consultation will explore the best ways to ensure that vulnerable high energy users, such as those with medical requirements are not put at risk. 

Interesting - here's hoping that by "very large quantities" they don't include those using seemingly "a long way above average" amounts of electricity due to their heating being dealt with that way! 

pickapennyup

yeah was watching i dont think it will effect me as im on a fix and its the same as the cap give or take a pence and eon have confirmed my fix till august 2024

tbh ive done ok out the budget and a increase in cms so cannot complain

k_man

Mstty said:

So the Energy Price Guarantee will rise from £2500 to £3000 from April 2023 for 12 months.(for the notional average user)

Not sure what pence per kWh of energy that will be yet.

Shame they didn't target high users rather than a blanket price.

From Martin's Twitter post, this may be in the pipeline.

As has been discussed previously though, this is complex to apply fairly compared to the current blanket EPG
e.g. is a high use household wasteful, or happens a large family, and people working from home etc.

They'll also consult on 'volumetric cap' so cheaper on less rates.

https://twitter.com/MartinSLewis/status/1593216894282387457?s=20&t=EJZvhboELuTL2Mu-5_5Btw

MSE_James

Video from Martin:

https://www.youtube.com/watch?v=Q-nkEKaylQE

DAVEMCFC

Working families £900 a year worse off from April. The Don't Pay campaign lost all momentum after Truss announced a 2 year freeze, but they are back in business now.

jamesg123

It is not a 20% increase in energy Martin Lewis unless you are on benefits (inc pensioners and disabled) all of these groups are to get additional support. HOWEVER for everyone else it’s as follows 
Average cap £2500 to £3000 + £500  no £400 energy support so that equals + £900  or a 36% increase on £2500 or +£75 per month on top of what you are paying now.   Add this to council tax increase upto +5% 

Mstty

I made £2100 rising to £3000 a 43% increase.

diystarter7

I'm a tad confused. The so-called/confusing EPG/Cap is set at a current 2600, correct?
The new EPG/Cap in April 2023 is 3000 quid, correct?
If so, how come its a 1000 pound rise as reported in the press?

NB: Please be warned that the so-called 'price cap' is very misleading as the 'cap' is on the price per unit of gas/elec and standing charge = average price cap at current rates of 2600. But most of us are paying a load me and we are paying close to double that.

Apols if I have got it wrong hence my query here. Thanks.