What is the October price freeze?
Prime Minister Liz Truss announced a two-year Energy Price Guarantee scheme in response to the continued rise in energy prices.
It’s being called the October price freeze as replaces Ofgem’s initial October price cap that was set to come into force on the same day. This means the average household will now pay around £1,000 less than if Ofgem’s original October price cap had gone ahead.
The word ‘freeze’ is a bit misleading, as the Guarantee doesn’t set a maximum for your final bill for the year. The Guarantee sets the maximum price suppliers can charge households for a single unit of gas and electricity, but the price of your energy bill will still depend on how much energy you use.
It’s important to note that this is not capped on how much you use, and if you use more energy than the typical household then you can expect to pay more.
If you’re on a pre-payment meter, the Guarantee means the money you put in will last longer than it would have with Ofgem’s original price cap.
October 2022 Energy Bill Loan
The Government has announced a £200 energy bill loan for October 2022 to offer support during this difficult year. In October, every electricity bill in Wales, England, and Scotland will be reduced by £200 for that month. Then, from April 2023, and for the next five years, your April energy bill will be an extra £40. This is to recoup the £200 loan paid out in October 2022.
Energy supplier support
If you are worried or struggling to pay your bills, contact your energy supplier as soon as possible. Big energy firms have funds that can help if you’re in debt, so get in touch with them directly to check their eligibility criteria.
To apply, you may need to fill in lots of forms. If you would like support with applying, our Money Advice team is happy to help you.
- Call 0330 159 6080 (press 3)
- Speak to us on web-chat at unitedwelsh.com (click the blue circle bottom right)
- Email firstname.lastname@example.org.
Welsh Government Council Tax Payment
The Welsh Government has announced new measures to help people during this crisis. If you live in council tax bands A to D, you will receive a £150 payment. Welsh Government is working with local authorities to make this happen and we will update this page with more information as more news is released.
If you are considering switching suppliers to avoid the new increasing energy rates, it is recommended to avoid this at the moment. Due to the state of the market, there are currently no open-market tariffs cheaper than the new cap.
This means that for most, the best option right now is to stick with your supplier.
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