The price cap is to be set at £2,500 for two years from October onwards, Prime Minister Liz Truss has announced as part of a range of measures designed to address the energy crisis.
“Decades of short-term thinking on energy has failed to focus enough on securing supply – with Russia’s war in Ukraine exposing the flaws in our energy security and driving bills higher. I’m ending this once and for all,” Prime Minister Liz Truss said as she addressed the House of Commons for the first time in her new role.
“I’m acting immediately so people and businesses are supported over the next two years, with a new Energy Price Guarantee, and tackling the root cause of the issues by boosting domestic energy supply.”
The Energy Price Guarantee supersedes the price cap which was set at £3,549 for the three months from October. This was an increase of 80% from the level of the Default Tariff Price Cap over the summer.
Due to this dramatic increase, the number of UK households in fuel poverty was predicted to increase from 4.5 million last October to 8.9 million this October.
Read more: Current+